Boeing reports third-quarter results

GAAP loss per share of ($0.19) and core loss per share (non-GAAP) of ($0.60) primarily reflects higher commercial volume.

Boeing recorded operating cash flow of ($0.3) billion.

"We are driving stability across our operations, investing in our future and positioning our teams to deliver for our customers as the market recovers," said Boeing President and chief executive officer David Calhoun. "Commercial market demand continues to gain traction with broad-based vaccine distribution and border protocols beginning to open. Going forward, supply chain capacity and global trade will be key drivers of our industry and the broader economy's recovery. Our portfolio across commercial, defence, space and services is well positioned, and we're focused on improving performance, while advancing technologies and digital manufacturing capabilities to drive our next generation of products and a sustainable future."

Operating cash flow improved to ($0.3) billion in the quarter, reflecting higher commercial deliveries, higher order receipts, and lower expenditures. Operating cash flow was also favourably impacted by a $1.3 billion income tax refund in the quarter.

Cash and investments in marketable securities decreased to $20.0 billion, compared to $21.3 billion at the beginning of the quarter, primarily driven by debt repayment and operating cash outflows. Debt was $62.4 billion, down from $63.6 billion at the beginning of the quarter due to the repayment of maturing debt.

Total company backlog at quarter-end was $367 billion.

Commercial

Commercial Aircraf third-quarter revenue increased to $4.5 billion primarily driven by higher 737 deliveries, partially offset by lower 787 deliveries. Third-quarter operating margin improved to (15.5) percent primarily due to higher deliveries.

Boeing is continuing to make progress on the global safe return to service of the 737 MAX. Since the FAA's approval to return the 737 MAX to operations in November 2020, Boeing has delivered more than 195 737 MAX aircraft and airlines have returned more than 200 previously grounded airplanes to service. 31 airlines are now operating the 737 MAX, safely flying over 206,000 revenue flights totalling more than 500,000 flight hours (as of October 24, 2021). The 737 programme is currently producing at a rate of 19 per month and continues to progress towards a production rate of 31 per month in early 2022, and the company is evaluating the timing of further rate increases.

The company continues to focus 787 production resources on conducting inspections and rework and continues to engage in detailed discussions with the FAA regarding required actions for resuming delivery. The current 787 production rate is approximately two airplanes per month. The company expects to continue at this rate until deliveries resume and then return to five per month over time. The low production rates and rework are expected to result in approximately $1 billion of abnormal costs, of which $183 million was recorded in the quarter.

Commercial Aircraft secured orders for 70 737 MAX, 24 freighter, and 12 787 aircraft Commercial Aircraft delivered 85 airplanes during the quarter and backlog included over 4,100 airplanes valued at $290 billion.

Defence

Defence, Space & Security third-quarter revenue decreased to $6.6 billion and third-quarter operating margin decreased to 6.6 percent, primarily due to a $185 million earnings charge on the Commercial Crew programme driven by the second uncrewed Orbital Flight Test now anticipated in 2022 and the latest assessment of remaining work.

Backlog at Defence, Space & Security was $58 billion, of which 33 percent represents orders from customers outside the U.S.