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Boeing (BA) Second Quarter 2021 Revenues: First Profit Since 2019

Boeing On Wednesday, airlines reported quarterly profits for the first time in almost two years, with a surge in commercial jet airliner deliveries as airlines began to recover from a pandemic slump and sales in other divisions of the airline increased.

Airplane makers recorded losses for the sixth straight quarter, with air travel plunging early in the pandemic, resulting in second-quarter profits of $ 567 million, up from a net loss of $ 2.96 billion a year ago.

Boeing’s revenue exceeded analysts’ estimated $ 16.54 billion, up 44% from $ 11.8 billion in the previous year to nearly $ 17 billion.

Compared to the analyst estimates compliant with Refinitiv, the company’s performance is as follows:

  • Adjusted EPS: 40 cents vs. 83 cents loss per share.
  • Revenue: $ 17 billion vs. $ 16.54 billion.

Boeing’s share price rose nearly 4% in the morning trading after the company reported its results.

“There are still ways to go before a full recovery, but due to continued vaccine distribution and increased travel demand, especially in the domestic market,” Dave Calhoun, CEO, said in an employee memo on Wednesday. It’s encouraging to see the commercial market improve. ” “From now on, we will carefully monitor case rates, vaccine distribution, travel protocols, and world trade as important indicators of recovery.”

Boeing said it would cut about 130,000 jobs by the end of 2021 last year, but Calhorn said Wednesday that increased demand is likely to keep it at about 140,000 today.

Sales and delivery of the 737 Max, which has long been a problem for Boeing, has increased in recent months with large orders from customers such as: United Airlines When Southwest Airlines, A vote of confidence in planes that had landed around the world until November, as 346 people were killed in the 2018 and 2019 crashes. Regulators lifted the ban after Boeing made changes to the flight control system associated with the crash.

Commercial aircraft unit revenue increased approximately 270% year-on-year to $ 6.02 billion in the second quarter. However, the segment still reported a negative margin of 7.8%.

While Max’s sales and deliveries are on the rise, the commercial aircraft sector is hampered by its wide-body 787 Dreamliner. Boeing said earlier this month that it would significantly reduce delivery forecasts for these planes and suspend delivery to airlines for the second time within a year after finding another manufacturing flaw in the plane.

“This is what Boeing is all about Boeing,” Calhorn said on CNBC.Squawk on the Street“on Wednesday.” [production] Rate recovery … we have to be perfect.

“We needed to solve all the quality problems we had on board, solve them, and solve the causes,” Calhoun added.

Boeing’s Global Services division also increased revenues as air traffic increased and demand for cargo ship modifications increased to meet the air cargo boom.

Defense revenues, which have supported Boeing during the pandemic slump in commercial aircraft demand, increased 4% to $ 6.88 billion.

Boeing (BA) Second Quarter 2021 Revenues: First Profit Since 2019

Source link Boeing (BA) Second Quarter 2021 Revenues: First Profit Since 2019

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