Before the market opens, Wall Street anticipates Boeing's results.

Before the market opens, Wall Street anticipates Boeing's results.
Before the market opens, Wall Street anticipates Boeing's results.
  • New planes' deliveries are being hindered by a safety and manufacturing crisis, which is predicted to result in another loss for Boeing.
  • The commercial and defense units of the company have faced challenges due to delayed programs and unexpected costs.
  • The 737 Max 9 experienced a door plug blowout in January, resulting in increased federal scrutiny for the company.

The aircraft manufacturer is expected to report another loss and lower revenue before the market opens on Wednesday, according to analysts.

According to LSEG's estimates, analysts predict how Boeing performed in the second quarter.

  • Loss per share: $1.97 per share adjusted
  • Revenue: $17.23 billion

The door plug blowout of a nearly-new 737 Max at the beginning of the year intensified regulatory scrutiny and slowed the delivery of new, fuel-efficient jets to airlines.

Boeing and Airbus are facing challenges due to a surge in new workers and a supply chain that cannot meet production demands after a pandemic-induced demand drop, in addition to the impact of a door plug accident in January.

Boeing's financial targets have been pushed back due to lower deliveries and production, with CFO Brian West warning in May that the company would likely burn another $4 billion in the second quarter, similar to the first, largely due to lower production and delivery rates than expected. Boeing was producing its best-selling Max planes at a pace of 25 per month in the last few months, far from its target of 38 a month.

Boeing's commercial airplane unit CEO, Stephanie Pope, admitted that the company has disappointed customers due to inadequate training and quality control. She announced plans to implement lasting changes ahead of the Farnborough Airshow in London earlier this month.

""We have not fulfilled our commitments and have not met their expectations as a partner, which has affected their business," she stated. "Pope clarified that this plan is not a three-month plan, but rather a transformative one because some of the actions will require years to implement," he said."

The defense unit of Boeing, responsible for building the two Air Force One aircraft, is experiencing delays and cost overruns, similar to other business units of the company.

This is breaking news. Check back for updates.

by Leslie Josephs

Business News