Boeing faces a $3.3 billion loss after a rise in defence unit charges
On Wednesday, the aerospace giant, Boeing Co. reported a loss of $3.3 billion citing problems with its defence business, supply chain disruptions as well as regulatory hurdles in its commercial jet unit. The company has also reported an increase in revenue by 4% from last year to $16 billion.
In this quarter Boeing has generated $2.9 billion in free cash which it says will keep it on track for a positive free cash flow by the end of 2022. The US-based aerospace giant said that its losses deepened in the third quarter due to these difficulties and at least $2.8 billion worth of charges related to defence programs including its military refuelling tanker and Air Force One replacement jets.
While the company was making some improvements it continued to face challenges with a series of engineering, manufacturing and regulatory problems it encountered since the crashes of two Boeing 737 Max jets which collectively claimed the lives of over 300 people, said a report by the Wall Street Journal.
“Nearly every industry is navigating a broad supply chain, inflation, labour and macro-economic challenges – and we’re certainly no different. We’re realistic about the environment we face and are taking comprehensive action,” said Chief Executive Dave Calhoun in a letter to his employees. He added, “turnarounds take time,” and said, “we have more work to do” and went on to reiterate his confidence in the team.
This loss has also been attributed to supply chain disruptions and its effect on the company’s commercial jet business which is facing delays in the delivery of 737 jets. Additionally, Boeing is also facing regulatory hurdles with its latest 737, MAX 7 and MAX 10 models which are yet to receive certification from the US regulatory bodies by the end of the year.
(With inputs from agencies)
