The Boeing Company has recorded a net loss of US$1.6bn (A$1.7bn) for the third quarter, as revenue increased nine per cent to US$16.7bn (A$18bn), but says that the chronically delayed 787 is still on track to make its first flight by the end of the year.
The loss was attributed to delays and associated development costs of its new airliner programs. “The 787 cost reclassification and the 747 charge for increased costs and difficult market conditions clearly overshadowed what continues to be otherwise solid performance across our commercial production programs and defense business,” said Boeing chairman, president and CEO Jim McNerney. “We look forward to getting the 787 and 747-8 in the air soon and moving forward with flight test and certification for these two important programs.”
Those costs saw Boeing Commercial Airplanes record a loss of US$2.8bn (A$3bn) as revenues increased by 13 per cent to US$7.9bn (A$8.5bn), driven by higher deliveries compared to the same time last year. The business booked 96 gross orders and cancellations of 17 aircraft, leaving its contractual backlog at US$254bn (A$274.6bn), more than seven times BCA’s expected 2009 revenues.
Revenues were also higher at Integrated Defense Systems, up by three per cent to US$8.7bn (A$9.4bn), which saw the division’s earnings increase by four per cent to US$885m (A$957m). The division was buoyed by increases in Military Aircraft and Global Services & Support business revenues, although these were tempered by a nine per cent fall in revenue at Network and Space Systems as a result of lower volumes.
Boeing Capital Corporation saw a five per cent increase in earnings of US$39m (A$42m), despite a three per cent fall in revenue to US$166m (A$179m). The company noted that there was a small decline in the value of its portfolio, which was offset by US$153m (A$165m) in new aircraft financing.
For the full year, the Boeing Company still expects revenue to come in between US$68-69bn (A$73.5-74.6bn), with earnings per share targeted at US$1.35-1.55 (A$1.46-1.68) due to the charges made on the 787 and 747-8 programs.