US-based aerospace company Boeing has reported a $3.3bn net loss in the third-quarter (Q3) of 2022 that ended on 30 September 2022.
The quarterly revenue reported for this period was $16.0bn, with a GAAP loss per share of approximately $5.49 and a core loss per share (non-GAAP) of $6.18.
In the company’s defence, space and security sector, the quarterly revenue fell to $5.3bn, with a decreased Q3 operating margin of 52.7%. Backlog in this sector was $55bn, which includes 31% of orders from non-US customers.
With $3.2bn of operating cash flow generated in Q3, the company has attributed the decline to nearly $2.8bn of losses on some fixed-price defence development programmes.
This was due to various technical challenges and more than expected manufacturing and supply chain expenses in different programmes, including the KC-46A tanker aircraft, MQ-25 remotely piloted aircraft (RPA), the VC-25B presidential plane, and T-7A trainer jet.
In Q3, the US Air Force (USAF) contracted Boeing to deliver 15 KC-46A aircraft while the Israeli Air Force awarded contract for four aircraft.
Boeing president and CEO Dave Calhoun said: “We continue to make important strides in our turnaround and remain focused on our performance.
“We generated strong cash in quarter and are on a solid path to achieving positive free cash flow for 2022.
“At the same time, revenue and earnings were significantly impacted by losses on our fixed-price defence development programmes.
“We’re squarely focused on maturing these programmes, mitigating risks, and delivering for our customers and their important missions.
“We remain in a challenging environment and have more work ahead to drive stability, improve performance, and ensure we’re consistently delivering on commitments.”
Boeing also claimed that Q3 results were affected by ‘unfavourable performance’ in other programmes as well.
Earlier this month, Boeing announced that it had received an order from the US Army for additional CH-47F Block II Chinook multi-mission helicopters.
