Editor’s Note: The story has been updated to reflect the correct adjusted EPS figure of 2023
Boeing Co (NYSE:BA) reported second-quarter 2024 results and named Kelly Ortberg its new President and CEO, effective August 8, 2024.
Boeing reported a second-quarter revenue decline of 15% year-over-year to $16.866 billion, missing the consensus of $17.23 billion.
Adjusted loss per share expanded to $(2.90) from $(0.82) in the same quarter of 2023, missing the consensus of $(1.91).
The company stated that the results primarily reflect lower commercial delivery volume and losses on fixed-price defense development programs.
Boeing recorded an adjusted operating loss of $(1.392) billion for the quarter, compared to $(390) million a year ago. The core operating loss margin was (8.3)%.
Commercial Airplanes revenue fell 32% YoY to $6.003 billion, reflecting lower deliveries and planned higher period costs, including research and development.
Deliveries declined by 32%, and 92 airplanes were delivered, and the backlog included over 5,400 airplanes valued at $437 billion.
The 737 program gradually increased production during the quarter and still plans to increase production to 38 per month by year end.
Defense, Space & Security revenue fell 3% year over year to $6.021 billion. The backlog was $59 billion, of which 31% represents orders from customers outside the U.S.
Global Services revenue grew by 3% YoY to $4.889 billion. The operating margin contracted 20 bps to 17.8%, reflecting higher commercial volume and mix.
Operating cash outflow for the six months ended June 30 totaled $(7.285) billion, compared to cash provided of $2.557 billion YoY; free cash outflow was $(4.3) billion.
Debt was $57.9 billion, up from $47.9 billion at the beginning of the quarter due to the issuance of new debt.
At the end of the quarter, cash and investments in marketable securities totaled $12.6 billion, and the total company backlog was $515.874 billion.
Also Read: Boeing Resumes 737 MAX Deliveries To China After Regulatory Delay: Report
Additionally, Boeing announced Robert K. “Kelly” Ortberg as the company’s new president and chief executive officer, effective August 8, 2024. Ortberg will also serve on Boeing’s Board of Directors.
Ortberg, 64, has over 35 years of aerospace experience. He began at Texas Instruments in 1983, joined Rockwell Collins in 1987, and became CEO in 2013.
He led its integration with United Technologies and RTX until 2021. He serves on the boards of RTX and Aptiv PLC and is a former Chair of the Aerospace Industries Association.
Price Action: BA shares are trading higher by 2.06% at $190.70 premarket at the last check on Wednesday.
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This article Boeing's Q2 Earnings: Huge Revenue Decline, Lower Deliveries, Names Former Aerospace Industries Association Chair Kelly Ortberg As New CEO (UPDATED) originally appeared on Benzinga.com
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