Boeing reports loss, hit by dreamliner and starliner setbacks1 min read . Updated: 27 Oct 2021, 06:16 PM IST
- Plane maker takes charges following disruption to 787 production and trouble with space-vehicle launch
Boeing Co. on Wednesday reported a quarterly loss as 787 Dreamliner production problems and its latest space-launch setback offset a recovery in demand for new aircraft.
The company said it had a net loss of $132 million, compared with the $466 million deficit a year earlier, on sales up 8% at $15.3 billion. The per-share loss of 19 cents was a penny better than the consensus among analysts polled by FactSet.
Boeing’s recovery from the prolonged 737 MAX crisis after two crashes of that jet has been hampered by manufacturing problems that have frozen most 787 deliveries for much of the last year.
Its troubles mounted in July when technical issues on the Starliner further delayed a redo of an earlier botched launch of the spacecraft.
The company took a $183 million charge in the quarter to cover disrupted Dreamliner production, which has been slowed to two a month from around five after Boeing accumulated more than 100 jets awaiting delivery. Boeing estimated on Wednesday the cost of the disrupted production could be as high as $1 billion.
The $185 million charge on the Starliner space taxi follows a $410 million charge last year to pay for a new launch after the first in December 2019 failed to reach the correct orbit. Faulty valves scuttled another launch attempt during the summer, with the flight now delayed until next year.
This story has been published from a wire agency feed without modifications to the text
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