Boeing managed to cut its net loss for the third quarter, thanks to higher defense sales, but it's not all smooth sailing for the aerospace company. As of September 30, Boeing reported a net loss of $116 million, or 26 cents a share. This is a stark contrast to the massive $5.34 billion loss, or $7.14 per share, it posted a year ago. When adjusted for one-time items, the loss came in at 34 cents per share.
Revenue for the quarter rose 4% from last year, hitting $24.19 billion. Free cash flow also improved, jumping to $464 million from $238 million during the same period last year. The defense unit led the way, with its revenue climbing 15% to $7.94 billion.
But Boeing's commercial aircraft division is still facing some bumps. The segment's revenue fell 3%, down to $10.72 billion, and it recorded a negative operating margin of 6.5%. The company pointed to a less favorable delivery mix, expected costs from changes in future production rates, and increasing supply chain expenses as the reasons.
Boeing delivered 161 commercial airplanes in the third quarter, just one more than the 160 delivered the previous year. The primary focus remains on stabilizing the production of the 737 Max, Boeing's top-selling model. CEO David Calhoun stressed the need to prioritize quality over speed in production. “I know everybody wants us to go faster but we're going to do it right, ” Calhoun said in a recent interview.
The company has been producing about 47 of the 737 Max planes each month, but it aims to boost this number. Calhoun pointed to the need for better lean operations, productivity, and efficiency, all while keeping safety and quality high. “Looking ahead, expectations are rising, and they should, ” he told employees in a message.
Boeing's recovery largely depends on aircraft production and deliveries, as most of an aircraft's price is paid upon delivery. There have been some positive signs recently. The U. S. Navy selected Boeing to work on its next-generation fighter jet. Plus, the Federal Aviation Administration approved the 737 Max 10, the largest of the Max series. This approval came after the 737 Max 7 got the green light in August, completing the certification for the Max family.
