Boeing reported a smaller loss per share than analysts expected, while revenues fell by almost 30%. In the crisis of a pandemic Boeing is planning to reduce its staff to 130 thousand by the end of 2021, compared with 160 thousand at the beginning of 2020.
Boeing shares (BA), decreasing by 52 and 35% yoy, down 2.5% on Wednesday (at the time of writing) after the American this huge aircraft reported loss third quarter ended 30 September.
Boeing reported a loss per share 3rd quarter -$1,39 compared to earnings per share of $1.45 in the same quarter a year ago, but it’s better than the analyst estimate of -$2.32 loss per share.
The company publishes its losses for the fourth consecutive quarter in the background grounding the 737 MAX and pandemic COVID-19.
Free cash outflow of the company for the quarter rose to $5.08 billion compared with $2.89 billion a year earlier but were better than analysts ‘ forecasts. Total debt Boeing jumped to $61 billion from $19.2 billion a year ago.
Total quarterly revenue was down 29% to $14,14 billion, below analysts ‘ forecast of $14,49 billion to See the quarterly history of revenue and profits for Boeing for the last 2 years can link.
The largest decrease in revenues was a segment of commercial aircraft: by 56% to $3.6 billion, According to a press release, in September, Boeing has carried out 11 of aircraft deliveries, with the result that with the beginning of the year their total number amounted to 98 units compared to 302 last year and more than 560 in 2018.
Meanwhile, Boeing expects passenger traffic the airline will return to the level of 2019, about three years – by 2023.
Revenues from the aerospace and defence services fell by 2% to $6,85 billion, including the allocation of $67 million on the program air refueling tanker KC-46.
Revenues from global services unit Global Services decreased by 21% to $3.7 billion.
Manual Boeing confirmed that it expects to receive permission to resume flights of the 737 Max before the end of 2020.
“737 MAX has now done about 1400 test and test flights and more than 3,000 flight hours as it passes through a robust and comprehensive certification process,” – said in a press release from Boeing.
Administrator, FAA Steve Dickson in late September, said he liked what he saw during a test flight of the 737 Max. Patrick Kay, Executive Director of the Agency of safety of the European Union, said in an interview with Bloomberg in October that the Agency is reviewing the final documents before you issue a Directive for airworthiness, probably in November.
Meanwhile, American Airlines (AAL) added 737 Max in its flight schedule in late December, pending approval by the FAA. Southwest Airlines (LUV) is also awaiting regulatory approval by year-end and plans to resume the schedule of flights 737 Max in 3-4 months.
Market experts and analysts point to the crucial importance of the future receipt by the Boeing 737 Max of status date for the flight, which, in their opinion, is more important for the company at the present time than its revenues.
The leadership of Boeing, which already cuts 16,000 jobs, in Wednesday said that will also improve their plans to reduce staff on another 11,000 cuts, with the result that by the end of 2021 the total number of staff in the company will amount to less than 130,000 people.
“Global pandemic continued to weigh on our business this quarter, and we are approaching this new reality, carefully managing our liquidity and transforming our company to become more sustainable in the long term,” said CEO Dave Calhoun. “Our diverse portfolio, including in our public services, defense and space programs continues to provide us with some stability as we adapt and rebuild, given the pandemic. Despite short-term obstacles, we remain confident in our long-term future.”