New York:Boeing has announced a reduced quarterly loss as it focuses on stabilizing its production output. The company reported a third-quarter loss of $116 million, a significant improvement from the $5.3 billion loss during the same period last year, which was primarily due to delays in the certification of the 777X aircraft.
According to Bangladesh Sangbad Sangstha, Boeing's Chief Executive Kelly Ortberg highlighted recent certifications of the 737 MAX 7 and 737 MAX 10 by the Federal Aviation Administration and a Pentagon award for the US Navy's next-generation fighter jets as indicators of progress in the company's turnaround efforts.
Despite the improvement, Boeing's earnings per share loss exceeded analysts' expectations. The company's revenues rose by four percent to $24.2 billion, driven by increased deliveries in its defense, space, and security business, as well as higher sales in Boeing global services. However, revenues from commercial aircraft saw a decline compared to the previous year.
Boeing is on track to achieve stabilized production of 47 aircraft per month for the 737 MAX. Ortberg emphasized the importance of maintaining quality and safety in their production processes, stating the need to focus on doing things right rather than rushing to meet higher output levels.
Ortberg, who became CEO in August 2024, joined Boeing as the company was dealing with the aftermath of two fatal 737 MAX crashes and a near-catastrophic incident in January 2024. Under his leadership, Boeing has received clearance from US officials to increase output incrementally, with discussions ongoing about potentially raising MAX production to 63 units per month or more.
Additionally, Boeing has reported $464 million in free cash flow for the quarter. The company aims to achieve $10 billion in annual free cash flow, with Ortberg projecting positive cash flow by 2026. Boeing's shares experienced a 1.3 percent decrease in early trading.