In the second quarter, Boeing (NYSE:BA) faced a setback, recording a loss of $149 million, despite higher revenue, due to challenges in its airline and defense businesses. The company, however, remains focused on increasing the production of its popular airline planes.

Boeing plans to ramp up production of the 737 Max, one of its most sought-after planes, from 31 to 38 planes per month, taking advantage of the growing demand for more fuel-efficient aircraft. Additionally, the production of the larger 787 Dreamliner will increase from four to five planes per month by the end of the year.

CEO David Calhoun expressed optimism about the future, acknowledging the need for improvement but stating that progress is evident. The company is working on enhancing the stability of operations in its factories and supply chain.

Supply-chain issues continued to pose challenges during the second quarter, leading to temporary delays in 737 deliveries due to Max fittings and regulators’ inquiries regarding Dreamliner inspections.

Boeing’s commercial planes division experienced “abnormal costs,” without providing further details. Analysts suspect these costs are related to addressing fuel tank issues on the Boeing 767 and fuselage fittings on the Dreamliner.

The defense and space business also performed below expectations, with write-downs on various programs contributing to disappointing results.

Charges of $257 million were recorded for the delay in launches of the Starliner reusable space vehicle, $189 million for higher-than-expected production costs of a military training jet, and $68 million for delays in a defense refueling drone.

Boeing’s Q2 loss contrasts with the net income of $160 million reported in the same period last year. Excluding exceptional items, the loss amounted to 82 cents per share, slightly better than the anticipated 89 cents per share loss according to analysts.

On a positive note, revenue surged by 18% to $19.75 billion, surpassing analysts’ expectations of $18.59 billion. This increase was primarily attributed to higher deliveries of commercial planes to airlines and lessors.

Despite the challenges, Boeing shares rose by 3% before the opening bell on Wednesday, showing investors’ confidence in the company’s long-term prospects.

Featured Image: Megapixl

Please See Disclaimer