Dow Jones aerospace giant Boeing missed estimates for second-quarter results early Wednesday. But Boeing stock climbed after the struggling plane maker appointed a new CEO to take over in early August.
Boeing reported a loss of $2.90 per share adjusted, widening from a loss of 82 cents last year. FactSet analysts expected a loss of $1.90 per share. Total revenue fell 15% to $16.87 billion, missing estimates of $17.35 billion.
Commercial airplane revenue tumbled 32% to $6 billion, driven by a 32% drop in deliveries. Boeing delivered 92 airplanes during the quarter and it has a backlog of over 5,400 planes valued at $437 billion.
The Dow giant noted that it submitted its comprehensive safety and quality plan to the Federal Aviation Administration during the quarter, following a string of mechanical issues on Boeing flights early in the year. Current CEO Dave Calhoun said Boeing is making "substantial progress" toward strengthening its quality management system.
"While we have more work ahead, the steps we're taking will help stabilize our operations," Calhoun said.
Boeing expects to increase 737 production to 38 planes per month by the end of the year and boost 787 production to five per month.
Defense, space and security revenue eased 2% to $6.02 billion, while global services revenue rose 3% to $4.89 billion.
Boeing was free cash flow negative for the quarter, in the red by $4.3 billion, compared to free cash flow of $2.6 billion last year.
Elsewhere, Boeing in early July agreed to buy supplier Spirit AeroSystems for $4.7 billion, with the deal expected to close in mid-2025.
Boeing Names New CEO
Separately on Wednesday, Boeing appointed Robert K. "Kelly" Ortberg to serve as the company's new president and CEO starting Aug. 8. Ortberg will succeed Calhoun, who announced his plans to retire earlier this year. Calhoun has led Boeing as CEO since January 2020 and has been a member of the board since 2009.
Ortberg, 64, has over 35 years of leadership experience in the aerospace industry. Ortberg previously served as president and CEO of Rockwell Collins and led its integration with United Technologies in 2018, followed by the merge with RTX Corporation in 2020. He briefly served as a "special advisor" to the CEO of RTX before retiring from the company in 2021.
Boeing Stock Performance
Boeing stock climbed 2% Wednesday on the news.
BA stock has rebounded from its late April lows, but shares are still down nearly 27% in 2024 making it one of the worst performing stocks on the Dow Jones Industrial Average.
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