Boeing Co. reported a $193 million profit for shareholders in the second quarter, but the results fell short of Wall Street targets for earnings and revenue as its defense business weakened compared with a year ago.
The company generated more cash than in the first quarter by delivering more planes than it has since the start of the pandemic, and it sold more services to airlines and other airplane operators.
However, Boeing remained unable to deliver one of its best-selling planes, the 787, while regulators review steps the company is taking to eliminate production problems.
Revenue from Boeing's normally steady defense business fell 10% in a year, and it took charges of $147 million related to an unmanned refueling plane being developed for the Navy and $93 million for its Starliner spacecraft, which is designed to ferry crews to the International Space Station.
A Boeing spokesman said the charge for the Starliner was unrelated to the announcement Tuesday by Russia's top space official that his country will pull out of the ISS program after 2024 and build its own orbiting station.
David Calhoun, who became CEO as Boeing’s financial situation worsened following two deadly of Max jets, said the results showed that “we are building momentum in our turnaround" while acknowledging that “it has been a long road.”
In a note to employees, Calhoun highlighted an increase in the number of 737 Max jets rolling off the assembly line — 31 a month, although that figure could fluctuate. He also said Boeing “is in the final stages" of working with the Federal Aviation Administration to resume deliveries of the larger, two-aisle 787, which Boeing calls the Dreamliner.
Second-quarter net income was $160 million, but the gain attributable to shareholders was $193 million. That was down from $587 million a year earlier.
Excluding adjustments for retirement plan expenses and other special items, the company lost 37 cents per share. Analysts expected an adjusted loss of 13 cents per share, according to FactSet.
Total revenue slipped 2% to $16.68 billion, falling short of Wall Street's forecast of $17.57 billion, despite an increase in airliner deliveries to 121 planes from 79 a year earlier. Boeing gets much of the purchase price upon delivery.
Shares of Boeing, based in Arlington, Virginia, rose about 3% in trading before the market opened Wednesday.
