The Boeing Company (NYSE:BA) has posted lower-than-expected earnings and revenue for 2Q but reiterated its expectation to achieve positive free cash flow in 2022.
For 2Q, the company reported an adjusted loss per share of $0.37, compared to earnings per share of $0.40 in the same quarter in 2021 and falling below the consensus market expectation of a loss of $0.14 per share.
The Virginia-based airplane manufacturer also fell short of revenue expectations, reporting revenue of $16.7 billion compared to $17 billion in the year-ago quarter and below the $17.6 billion expected by market analysts.
READ: Boeing stock plummets after quarterly earnings highlight production snafus
The company attributed its reduced revenue to lower defence volume and unfavourable performance which it said was partially offset by higher commercial volume, with the company delivering 121 commercial airplanes during the quarter compared to 79 during the same period in 2021.
Boeing recorded a positive operating cash flow of $81 million, up from a negative cash flow of $483 million in the year-ago quarter, which the company said reflected higher commercial deliveries and the timing of receipts and expenditures.
"As we begin to hit key milestones, we were able to generate positive operating cash flow this quarter and remain on track to achieve positive free cash flow for 2022,” said Boeing CEO Dave Calhoun.
“While we are making meaningful progress, we have more work ahead. We will stay focused on safety, quality and transparency, as we drive stability, improve performance, and continue to invest in our future."
The company also noted it had nearly completed the global safe return to service of the 737 MAX, with the production of the 737 increasing to 31 airplanes per month during the quarter.
Regarding its 787 Dreamliner, the company said it continued to work with the Federal Aviation Administration to resume deliveries after they were suspended in May 2021 due to quality control and production issues. Boeing said abnormal costs related to the 787 would be approximately $2 billion by the end of 2023, including $283 million recorded in Q2.
Following the release of its results, Boeing’s shares were up about 0.5% at noon, trading at roughly $156.70 per share.
Contact the author Emily Jarvie at emily.jarvie@proactiveinvestors.com
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