Boeing reported a second quarter loss of nearly $3 billion as it absorbed the financial damage caused by the grounding of its 737 Max airliner after two deadly crashes.The giant aircraft maker said Wednesday that revenue plunged 35 per cent from a year earlier, as it was unable to deliver any new Max jets.
Boeing removed much of the suspense from earnings day when it announced last week that it would take a $4.9 billion US after-tax charge for the Max and expected the troubled plane to return to service in the fourth quarter.That charge was calculated from Boeing’s estimate of the cost of compensating airlines for lost use of their Max planes for several months. It did not include Boeing’s potential liability from dozens of lawsuits filed by relatives of the 346 passengers who died in the crashes.
Boeing’s statement Wednesday offered no new guidance about the Max or the company’s profit expectations for the rest of the year. Investors were likely more focused on commentary that management might provide during a conference call that was scheduled for later in the morning.The Chicago-based company, which builds planes in Washington state and South Carolina, said it lost $2.94 billion in the quarter, compared with a profit of $2.20 billion a year earlier. It reported an adjusted loss of $5.82 per share.
Revenue tumbled to $15.75 billion from $24.26 billion a year earlier, a drop of 35 per cent.The huge charge for the Max caused the quarterly numbers to mean less than usual. Some analysts excluded the charge from their forecast of earnings per share, while others did not, making it difficult, if not impossible, to judge whether Boeing met, beat or fell short of Wall Street expectations.