A Boeing Co. Dreamliner 787 aircraft in AirEuropa livery passes the company’s final assembly plant in North Charleston, South Carolina, U.S., Tuesday, Dec. 6, 2016.
Dove Travis | Bloomberg | Getty Images
Boeing announced a wider adjusted loss and lower revenue than analysts expected the company to face higher costs on commercial and defense aircraft.
The manufacturer said it would suspend production of its 777X aircraft, which has not yet been certified by US regulators, until 2023. Boeing also does not expect deliveries of the plane begin before 2025, more than a year later than planned.
Boeing shares were down more than 2% in premarket trading after the earnings release Wednesday morning.
Here’s how Boeing fared in the first quarter against analyst estimates compiled by Refinitiv:
- Adjusted results: a loss of $2.75 per share versus an expected loss of 27 cents per share.
- Revenue: $13.99 billion vs $16.02 billion expected.
Boeing has seen an upsurge in demand for its 737 Max jet, which returned to service in late 2020 after two fatal crashes. But production problems and certification delays have hampered other aircraft programs.
“With our first quarter results, you will see that we still have work to do; but I remain encouraged by our trajectory, and we are on track to generate positive cash flow for 2022,” said the CEO. of Boeing, David Calhoun, in a note. to employees on Wednesday. “We are a long-cycle business, and the success of our efforts will be measured over years and decades, not quarters.”
The company said it was increasing production of 737 Max to 31 per month in the second quarter.
Boeing shares are down 17% so far this year through Tuesday’s close, outpacing the S&P 500’s 12.4% decline.
Maker executives will hold a call with analysts at 10:30 a.m. ET.
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