Boeing, quarterly loss of $6.17 billion the worst since 2020
New CEO Kelly Ortberg emphasised the need for a cultural change. Result on wage agreement expected to end strike
by Mara Monti
2' min read
2' min read
Boeing ended the third quarter with a $6.17 billion loss, the worst since 2020 in the Covid period, on revenues of $17.8 billion. Operating cash flow was negative $1.3 billion. In announcing the results, the giant's new CEO Kelly Ortberg highlighted the need for a 'fundamental culture change. Leadership, from me on down, needs to be integrated with the business and those who design and manufacture our products'.
Boeing shares fell almost 3% ahead of what could be one of the most important days in recent years for the troubled aerospace manufacturer. Later today, workers are expected to respond to a proposed wage agreement to end the strike that has crippled the company's aircraft production for more than a month. In an interview with CNN, the ceo said he was very confident about the outcome of the vote, 'let's wait until the evening'. Boeing shares are down almost 40 per cent this year.
Revenues in the quarter stood at $17.8 billion against $18.1 billion in the same period last year, below analysts' estimates, and recorded cash outflows of $2 billion in the quarter, adding to $8.2 billion in the previous two quarters. Consolidated debt stood at $57.9 billion compared to $57.7 billion last year.
The commercial aircraft division posted an operating loss of about $4 billion, compared to $547 million a year earlier, in addition to announcing a new delay for the first 777X and the end of production of the 767 freighter. Boeing's defence and space division lost $2.38 billion in the quarter, as it recorded further cost overruns for the KC-46 tanker in addition to the Starliner spacecraft returned to earth without astronauts and other loss-making programmes. Ortberg ousted the head of the division, Ted Colbert, early in his tenure as CEO.
In his first public presentation, Ortberg was explicit in pointing out what needs to change: 'We must leave the past behind in order to move the group forward. The first imminent goal is to end the strike and start working together with all employees. 'It will take time to return Boeing to its former tradition, but with the right focus and culture, we can return to being an iconic and leading aerospace company,' Ortberg said in a message sent to employees.
