Boeing beats by $0.16, beats on revs; 737 program increased production rate to 38/mo; 787 program production rate increased to 7/mo (236.41 +3.35)
- Reports Q2 (Jun) core (non-GAAP) loss of $(1.24) per share, excluding non-recurring items, $0.16 better than the FactSet Consensus of ($1.40); revenues rose 34.9% year/year to $22.75 bln vs the $22.15 bln FactSet Consensus.
- "Our fundamental changes to strengthen safety and quality are producing improved results as we stabilize our operations and deliver higher quality airplanes, products and services to our customers...As we look to the second half of the year, we remain focused on restoring trust and making continued progress in our recovery while operating in a dynamic global environment."
- Segment Performance:
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Commercial Airplanes Q2 segment revenue grew 81% yr/yr to $10.87 bln with (5.1)% segment operating margin.
- CA results primarily reflect higher deliveries. The 737 programincreased the production rate to 38/mo in Q2 and plans to stabilize at that rate before requesting approval to increase to 42/mo later this year.
- The 787 program production rate is now at 7/mo.
- Commercial Airplanes booked 455 net orders in the quarter, including 120 787 and 30 777-9 airplanes for Qatar Airways and 32 787-10 airplanes for British Airways. Commercial Airplanes delivered 150 airplanes during the quarter, and backlog included over 5,900 airplanes valued at $522 billion.
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Defense, Space & Security Q2 segment revenue grew 10% yr/yr to $6.62 bln with 1.7% operating margin.
- Co says DSS results reflect stabilizing operational performance. During the quarter, DSS captured an award from the U.S. Air Force to build four T-7A Red Hawk production representative aircraft and began ground testing on the first MQ-25 Stingray for the U.S. Navy. Backlog at DSS grew to $74 bln with 22% representing orders from customers outside the US.
- Global Services Q2 segment revenue rose 8% yr/yr to $5.28 bln with 19.9% segment operating margin. Results reflect favorable performance and mix. In the quarter, Global Services completed the sale of its maintenance, repair and overhaul facility at Gatwick Airport and secured a contract to provide P-8A aircraft training systems and support to the Republic of Korea Navy.