Investing.com - Boeing (NYSE:BA) swung sharply to a record net loss of $2.94 billion in the second quarter, as expected, after booking an after-tax charge of $4.9 billion to reflect the cost of compensating airlines for problems with the 737 MAX aircraft.
Revenue tumbled 35% from a year earlier to $15.75 billion, while the loss per share was $5.82. The figures were well out of line with consensus figures, which predated the announcement of the charge last week.
The company said it still wasn't in a position to give guidance for the rest of the year, saying only that: "Due to the uncertainty of the timing and conditions surrounding return to service of the 737 MAX fleet, new guidance will be issued at a future date."
"This is a defining moment for Boeing," chairman and CEO Dennis Muilenburg said in a statement. "The MAX grounding presents significant headwinds and the financial impact recognized this quarter reflects the current challenges and helps to address future financial risks."
The company also had to admit a setback with another airplane program, saying that engine problems were holding up the testing schedule for the 777X, its new wide-bodied model. That may push back the day when the 777X starts to earn money for the company.
"While the company is still targeting late 2020 for first delivery of the 777X, there is significant risk to this schedule given engine challenges, which are delaying first flight until early 2020,"
The company had reported per-share earnings of $3.16 on revenue of $22.92 billion in the previous quarter.
The figures were still a little worse than the market had expected. Boeing shares slipped 1.4% to $368.00 in pre-market trade following the report.
Boeing follows other major Capital Goods sector earnings this month
Boeing's figures are somewhat at odds with two of the aviation industry's biggest players. Both Honeywell anddUnited Technologies earnings beat analysts' expectations for the second quarter and raised their outlook for the full year.
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