New York, United States – Boeing reported a bigger-than-expected quarterly loss Wednesday due to quality control problems that have limited commercial plane deliveries and lifted costs in its defense program.
The company reported a loss of $425 million, compared with $1.2 billion in the year-ago period. But Boeing affirmed its full-year outlook for operating cash flow, a key metric, and for 737 plane deliveries in 2023.
The company’s revenues came in at $17.9 billion, up 28 percent from the year-ago period and topping analyst expectations, but under the level of the pre-pandemic 2019 first quarter.
Shares rose on the report.
“We are progressing through recent supply chain disruptions but remain confident in the goals we set for this year, as well as for the longer term,” said Chief Executive Dave Calhoun.
“Demand is strong across our key markets and we are growing investments to advance our development programs and innovate strategic capabilities for our customers and for our future.”
Boeing’s commercial plane program has been beset with various manufacturing and quality control issues that have limited deliveries for its top-selling jets, the 737 and 787.
The most recent issue stems from a supplier part problem on the 737 that will affect near-term deliveries. However, Boeing still expects to lift production on the plane later in 2023 and again in the 2025/26 timeframe, the company said in a press release.
On defense, Boeing disclosed a new $245 million charge of one-time costs connected to the KC-46A Air Force tanker, also related to supplier issues.
Shares jumped 3.8 percent to $209.81 in pre-market trading.