More problems for Boeing (NYSE:BA). The aircraft maker reported a $3.3-billion quarterly loss Wednesday as problems in its defense unit countered strides in its commercial aircraft business.
The manufacturer, however, generated nearly $3 billion in free cash flow in the three months ended Sept. 30, up from outflows of $507 million a year earlier. Boeing reiterated its forecast to achieve positive free cash flow for the year.
BA reported a loss per share of $6.18, as opposed to expected earnings per share of seven cents, on revenue of $15.96 billion vs. $17.76 billion expected.
Boeing reported losses of $2.8 billion in its defense unit on programs including the KC-46 tanker and Air Force One. The company previously disclosed losses of more than $1 billion associated with modifying two 747 jumbo jets to serve as Air Force One, a contract negotiated under former President Donald Trump.
“We’re squarely focused on maturing these programs, mitigating risks and delivering for our customers and their important missions,” Boeing CEO David Calhoun said on Wednesday.
The trouble in the defense unit has piled up as Boeing’s commercial unit is recovering from the pandemic, boosted by a rebound in air travel.
Boeing’s commercial unit’s revenues rose 40% from a year ago to $6.26 billion. It delivered 112 planes in the third quarter, up from 85 a year earlier. Deliveries of its 787 Dreamliner resumed in August after a pause for much of the previous two years to address a series of manufacturing flaws.
BA shares handed back 20 cents soon out of the gate to $146.45.
