Boeing beats by $0.55, beats on revs; co expects to continue lowering staffing levels due to pandemic
- Reports Q3 (Sep) core loss of $(1.39) per share, excluding non-recurring items, $0.55 better than the S&P Capital IQ Consensus of ($1.94); revenues fell 29.2% year/year to $14.14 bln vs the $13.96 bln S&P Capital IQ Consensus.
- Co says the pandemic continued to add pressure to its business this quarter, and co is aligning to this new reality by closely managing liquidity and transforming its enterprise.
- 737 MAX: Following the lead of global regulators, Boeing made steady progress toward the safe return to service of the 737 MAX, including rigorous certification and validation flights conducted by the FAA, Transport Canada and the European Union Aviation Safety Agency. The 737 MAX has now completed around 1,400 test and check flights and more than 3,000 flight hours as it progresses through the robust and comprehensive certification process.
- Boeing expects to continue lowering overall staffing levels through natural attrition as well as voluntary and involuntary workforce reductions, and recorded additional severance costs in Q3.
Segment Overview:
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Commercial Airplanes revenue fell 56% yr/yr to $3.60 bln, reflecting lower delivery volume primarily due to COVID-19 impacts as well as 787 quality issues and associated rework.
- Commercial Airplanes added the final 777X flight test airplane to the test program and the GE9X engine received FAA certification.
- In October, the company decided it will consolidate 787 production in South Carolina in mid-2021, which did not have a significant financial impact on the program in Q3.
- Commercial Airplanes delivered 28 airplanes during the quarter, and backlog included over 4,300 airplanes valued at $313 bln.
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Defense, Space & Security revenue decreased 2% yr/yr to $6.85 bln, primarily due to derivative aircraft award timing, partially offset by higher fighter volume.
- Co received an award for eight F-15EX advanced fighter aircraft for the U.S. Air Force and a contract extension for the International Space Station for NASA, as well as contracts for nine additional MH-47G Block II Chinook helicopters for the U.S. Army Special Operations and four additional 702X satellites.
- Backlog was $62 bln, of which 30% represents orders from customers outside the US.
- Global Services revenue decreased 21% yr/yr to $3.69 bln, driven by lower commercial services volume due to COVID-19, partially offset by higher government services volume.