Investiong.com -- Boeing reported Friday a third-quarter preliminary loss as the aircraft maker is set to take a financial hit from write downs amid certification delays, production disruptions and the ongoing machinists strike.
Boeing Co (NYSE:BA) fell more than 1% in afterhours trading Friday following the report.
The company said it expected to report a Q3 loss of $9.97 on revenue of $17.8 billion.
The loss was attributed to "International Association of Machinists and Aerospace Workers work stoppage and charges in the commercial airplanes and defense segments," the company said.
The company's commercial airplanes unit expects to recognize pre-tax earnings charges of $3.0B on the 777X and 767 programs. First delivery of the 777-9 in 2026 and the 777-8 freighter is now expected in 2028, resulting in a pre-tax earnings charge of $2.6B.
The defense, space & security business is expected to suffer pre-tax earnings charges of $2.0 billion on the T-7A, KC-46A, Commercial Crew, and MQ-25 programs, the company said.
Boeing reported preliminary negative operating cash flow of $1.3 billion for the quarter, with cash and investments in marketable securities totaling $10.5 billion at the end of the period.
"While our business is facing near-term challenges, we are making important strategic decisions for our future and have a clear view on the work we must do to restore our company," said Kelly Ortberg, Boeing president and chief executive officer. "These decisive actions, along with key structural changes to our business, are necessary to remain competitive over the long term."
The company also announced it plans to conclude production of the 767 freighter and recognize a $0.4 billion pre-tax charge on the program, which also reflect the impact from the ongoing machinists strike. Beginning in 2027, Boeing said it would solely produce 767-2C aircraft in support of the KC-46A Tanker program.
Boeing's commercial airplanes segment expects to report third quarter revenue of $7.4 billion and operating margin of -54.0%, while the defense, space & security segment anticipates revenue of $5.5 billion and operating margin of 43.1%.