Boeing declared its Q2 earnings on Wednesday this past week, reporting a quarterly loss of $2.9 billion, as its now infamous 737 Max jet continues to remain grounded after two fatal crashes resulting in loss of orders and constant maintenance cost. Revenues were reported to have dropped to $15.8 billion. As per reports, Boeing’s earnings also dropped considerably by 275% from the same quarter in comparison to last year with the company earning $3.33 per share.
Last week, Boeing incurred $4.9 billion charges because of Max grounding, amounting to a loss of $8.74 a share. Boeing stated the cost for the charges were “partially offset by higher defense and services volume.” Reportedly, Boeing lost delivery of 104 airplanes to customers in the second quarter.
Company’s service business reported strong growth of 11% to $4.5 billion in comparison to $4.1 billion a year earlier. Rise in volume across F/A-18 fighter jets, satellites, and weapon programs was reported to have resulted in $6.6 billion revenue in the defense unit.
Boeing’s chairman and CEO Dennis Muilenburg assured that the company remains focused on returning the safe return of Max Aircrafts. He further stated “This is a defining moment for Boeing.” I would tend to agree.
Dow 30 component Boeing (NYSE: BA) is the world’s largest aerospace company and leading manufacturer of commercial jetliners and defense, space and security systems. To learn more about Boeing (BA) and to track its ongoing progress please visit the Vista Partners Boeing (BA) Coverage Page.
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