On Wednesday, Boeing announced a $1.64 billion loss for the third quarter as fewer of its best-selling planes were delivered and more money was invested in the construction of two new Air Force One presidential jets.
The aircraft manufacturer reduced its projection for 737 Max production this year from an earlier prediction of 400 to 450 aircraft to between 375 and 400 aircraft. As it conducts inspections and additional work to remedy a pressure-sealing part of the aircraft, Boeing said manufacturing and deliveries of 737s will be slowed.
Due to higher than anticipated manufacturing costs, Boeing announced a $482 million loss for the quarter on a deal with the Air Force to build two new presidential jets.
A satellite contract also cost the corporation $315 million in losses. Absent extraordinary factors, the Arlington, Virginia-based corporation reported a quarterly loss of $3.26 per share. Up 13% to $18.10 billion in revenue.
A FactSet survey of analysts revealed that they anticipated the corporation to lose $3.18 per share on $18.01 billion in revenue.
The business suffered from issues that hindered production of the 737 Max passenger jet, and as a result, it only delivered 105 commercial jets in the third quarter, down from 112 a year earlier.
737 deliveries decreased to 70 from 88 in the same period last year; however, 787 Dreamliner deliveries increased. CEO David Calhoun said the company was striving to stabilize its supply chain and gradually raise aircraft production rates and added that “despite near-term challenges, we remain on track to meet the financial goals we set for this year and for the long term.”
In premarket trading, the company’s shares increased by nearly 3%.