Boeing's Defense Business Hit By $2.8B Losses, Expects Positive Free Cash Flow For FY22

Boeing's Defense Business Hit By $2.8B Losses, Expects Positive Free Cash Flow For FY22
  • Boeing Co's BA Defense, Space & Security unit recorded $2.8 billion of losses on certain fixed-price development programs, driven by higher estimated manufacturing and supply chain costs, as well as technical challenges.
  • Q3 sales for the unit decreased 20% to $5.31 billion.
  • Overall sales increased 4% to $15.96 billion, missing the consensus of $17.83 billion. Adjusted loss per share widened to $(6.18) from $(0.60) a year ago.
  • Related: Boeing Wins Senator Support For Request For Waiving Deadline Extension For New 737 MAX Variants Certifications.
  • Boeing delivered 112 commercial airplanes in the third quarter compared to 85 last year.
  • That helped generate a free cash flow of $2.9 billion in the quarter. It had recorded a cash burn of $507 million in the same period a year ago.
  • "We generated strong cash in the quarter and are on a solid path to achieving positive free cash flow for 2022. At the same time, revenue and earnings were significantly impacted by losses on our fixed-price defense development programs," said Boeing Chief Executive Dave Calhoun.
  • The total backlog was $381 billion, including over 4,300 commercial airplanes.
  • Price Action: BA shares are down 0.58% at $145.80 during the premarket session on the last check Wednesday.
  • Photo Via Wikimedia Commons

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