Boeing announced substantial financial setbacks in its third quarter results, citing production delays and labor issues as key factors impacting its performance.
The aerospace giant expects to report a third-quarter revenue of $17.8 billion and a GAAP loss per share of $9.97. The company’s cash and marketable securities totaled $10.5 billion at the quarter’s end.
Boeing President and CEO Kelly Ortberg acknowledged the company’s difficulties, stating, “While our business is facing near-term challenges, we are making important strategic decisions for our future and have a clear view on the work we must do to restore our company.”
The Commercial Airplanes segment anticipates pre-tax earnings charges of $3 billion on the 777X and 767 programs. Boeing now projects the first delivery of the 777-9 in 2026 and the 777-8 freighter in 2028, resulting in a $2.6 billion pre-tax charge.
The Defense, Space & Security division expects to recognize $2 billion in pre-tax charges across several programs, including the T-7A, KC-46A, Commercial Crew, and MQ-25.
In response to these challenges, Boeing plans to reduce its total workforce by approximately 10% over the coming months. Ortberg emphasized the necessity of this decision, stating, “These reductions will include executives, managers and employees.”
The company’s financial struggles are compounded by an ongoing work stoppage by the International Association of Machinists and Aerospace Workers (IAM), which has further impacted production schedules and financial outcomes.
Despite these setbacks, Ortberg expressed determination to navigate through the current difficulties, saying, “We will re-focus our company, and we will restore trust with all those who depend on us.”
Boeing is scheduled to release its full third-quarter results on October 23.
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