Boeing Gains as It Posts Consecutive Core Operating Profit
By Dhirendra Tripathi
Investing.com – Boeing stock (NYSE:BA) traded nearly 1% higher in Wednesday’s premarket as the aeroplane manufacturer delivered more aircraft, allowing it to report a small core operating profit for the second straight quarter.
The world’s largest maker of commercial planes reported core operating earnings of $59 million in the September quarter compared to a loss of $754 million in the same period a year ago.
Revenue rose to about $15.3 billion, fuelled by deliveries of its once best-selling 737 MAX jets. Boeing said it is currently building nineteen 737 MAX jets per month, up from the 16 last quarter, and is targeting 31 per month in early 2022.
Since the regulator’s approval to return the 737 MAX to operations in November 2020, Boeing said it has delivered more than 195 units of those planes.
The company continues to resolve issues surrounding its wide-body planes in the 787 catalog. The low production rates and rework are expected to result in approximately $1 billion of abnormal costs, of which $183 million was recorded in the quarter, it said.
The current 787 production rate is approximately two planes per month. The company expects to continue at this rate until deliveries resume and then return to five per month over time, still a slow rate.
The company's net loss of $132 million was less than a third of the $466 million last quarter.
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Boeing Gains as It Posts Consecutive Core Operating Profit
