{"id":53031,"date":"2023-07-27T21:53:15","date_gmt":"2023-07-27T13:53:15","guid":{"rendered":"https:\/\/wp-productionenv-bjg9h2g2bgg5b8aa.southeastasia-01.azurewebsites.net\/news\/boeing-swings-to-loss-in-second-quarter-on-defense-space-and-commercial-programs\/"},"modified":"2023-07-27T21:53:15","modified_gmt":"2023-07-27T13:53:15","slug":"boeing-swings-to-loss-in-second-quarter-on-defense-space-and-commercial-programs","status":"publish","type":"post","link":"https:\/\/starpath.global\/news\/boeing-swings-to-loss-in-second-quarter-on-defense-space-and-commercial-programs\/","title":{"rendered":"Boeing Swings to Loss in Second Quarter on Defense, Space and Commercial Programs"},"content":{"rendered":"<\/p>\n

Losses on several defense and space programs combined with a wider loss in the commercial airplane building segment led Boeing<\/strong> on Wednesday to report a net loss in income despite strong sales growth in the airplane manufacturing and services businesses.<\/p>\n

The Defense, Space & Security segment had a $527 million operating loss versus $71 million in income a year ago, largely due to a $257 million loss on NASA\u2019s Commercial Crew program, $189 million on the Air Force T-7A trainer, and $68 million on the Navy\u2019s MQ-25 unmanned aerial refueling aircraft. So far, during the life of these fixed-price development programs they have lost $1.4 billion, $1.3 billion, and $1 billion, respectively.<\/p>\n

The fixed-price development programs make up about 15% of Boeing\u2019s defense and space business. About 60% of the segment \u201cis generating solid levels of performance in line with historical margins\u201d and another 25% is struggling somewhat and is also losing money, Brian West, Boeing\u2019s chief financial officer, said on the call.<\/p>\n

West said a \u201chandful of programs\u201d make up the 25% of the portfolio that is not performing well, adding that there is a plan to turn them \u201cpositive\u201d and the company is expecting defense and space operating margin to get to the high-single digit percent range in the 2025 to 2026 timeframe.<\/p>\n

\u201cWe continue to see operational impacts from labor instability and supply chain disruption\u201d from some of the other program that is depressing margins, he said, without identifying the programs. Some of the company\u2019s factories \u201calmost went dark during the pandemic and we\u2019ve had to bring them back to life, and that takes time\u201d to get workers and get them trained \u201cto do some very complicated work,\u201d he said.<\/p>\n

Boeing\u2019s defense margins \u201chave to get better next year, period, full stop,\u201d to get to the \u201ctrajectory\u201d for the 2025 to 2026 goal, West said.<\/p>\n

Sales of $6.2 billion at Defense, Space & Security were flat. Defense tallied $6 billion in orders and backlog rose 6% to $57.5 billion from $54.4 billion at the end of 2022.<\/p>\n

Boeing\u2019s net loss in the quarter was $149 million, 25 cents earnings per share (EPS), versus $160 million (32 cents EPS) in net income a year ago. Adjusted for pension costs, the core earnings loss was 82 cents EPS, six cents better than consensus estimates.<\/p>\n

Sales increased 18% to $19.8 billion on the strength of higher aircraft deliveries and commercial and government work at the Boeing Global Services segment.<\/p>\n

Boeing\u2019s total backlog at the end of the quarter stood at $439.6 billion, up 9% from $404.4 billion at the end of 2022, driven mainly by a huge increase at the Commercial Airplanes segment on robust orders.<\/p>\n

A version of this story was first published by Via Satellite sister publication Defense Daily.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Losses on several defense and space programs combined with a wider loss in the commercial airplane building segment led Boeing on Wednesday to report a net loss in income despite strong sales growth in the airplane manufacturing and services businesses. The Defense, Space & Security segment had a $527 million operating loss versus $71 million in […]<\/p>\n","protected":false},"author":1,"featured_media":53034,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[2],"tags":[],"class_list":["post-53031","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"acf":[],"_links":{"self":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts\/53031"}],"collection":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/comments?post=53031"}],"version-history":[{"count":0,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts\/53031\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/media\/53034"}],"wp:attachment":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/media?parent=53031"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/categories?post=53031"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/tags?post=53031"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}