December 8, 2022

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Boeing reported larger-than-expected losses, but it’s still good news

A Ryanair Boeing 737-800 aircraft lands at Barcelona's 'El Prat' airport on September 28, 2018. - Ryanair cancelled scores of European flights today as unions staged what they warned could be the biggest strike in the airline's history.
The Dublin-based low-cost carrier has played down fears of widespread disruption but confirmed it would cancel nearly 250 flights. (Photo by PAU BARRENA / AFP)        (Photo credit should read PAU BARRENA/AFP/Getty Images)
For the company that bore a A constant stream of bad news Over the past three years, these latest results are touted as a “good” quarter.
shares Boeing (BA), a component of the Dow Jones Industrial Average, gained 3% in mid-morning trading, according to the report. They are still down 22% for the year through Tuesday’s close.

Investors were likely pleased that Boeing reported positive operating cash flow of $81 million — only in the second quarter of the past three years that the company hasn’t burned with cash. Furthermore, the company said it is on track to maintain positive cash flow for the year.

It may be the beginning of a reversal of the liquidity burn trend that Boeing has faced since the second quarter of 2019, when 737 Max has been grounded after, after Two fatal accidents. At the time, Boeing had negative operating cash flow of $24.7 billion.
However, Boeing was unable to set a deadline for the resumption of its deliveries 787 Dreamliner Planes that have been grounded by the Federal Aviation Administration for more than a year. The company had to incur $283 million in the quarter related to costs associated with this downtime, and expects total costs to reach $2 billion.

“While we’re making tangible progress, we still have a lot of work to do,” said CEO Dave Calhoun.

Boeing reported overall net income of $160 million excluding special fees for the second quarter, down 72% from a year earlier. And while revenue of $16.9 billion was just 2% lower than the previous year, that was $900 million less than analysts had expected.

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The adjusted loss came in at 37 cents a share for the quarter, excluding special items. That’s much worse than the 14 percent loss expected by analysts surveyed by Refinitiv, and 40 percent of the earnings per share they made a year ago.

Better news on the 737 Max

And in other brighter news for Boeing, the company increased production of its 737 Max jets to 31 a month, up from 26 a month at the end of last year. It also received orders for 169 aircraft during the quarter, including 100 of Delta Airlines (DA) – The only major American airline that has Don’t own a plane before.
Boeing delivered 103 737 Max planes in the quarter, the most since the Federal Aviation Administration Completed 20 months of grounding off the plane in November 2020. One of those deliveries was Ethiopian Airlinesone of the two airlines that suffered the fatal plane crash.
Some customers of Boeing and major aircraft leasing companies have been highly critical of Boeing’s recent performance and are calling for a change in management – most notably Michael O’Leary, CEO of Ryanair, Europe’s largest discount airline. Earlier this year, O’Leary launched a caliber Profanity-filled attack on Boeing During a call with investors, she said her management needed a “reboot or reboot of **.”