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Boeing slumps to near-$3 billion Q2 net loss on Max grounding

Boeing has reported a net loss of nearly $2.9 billion for the second quarter, driven by charges for the grounded 737 Max.

The airframer had warned on 18 July that it would take a $4.9 billion after-tax charge in its second-quarter results, due to the costs associated with the Max.

On an operating level, it sunk to a loss of $3.7 billion, compared with a profit of $2.4 billion one year ago. Its core loss per share of $5.82 compares with a profit of $3.33 in the same period last year.

Revenue was down 35% at $15.8 billion, reflecting both the Max charge and lower 737 deliveries.

Boeing Commercial Airplanes made an operating loss of $4.9 billion, after a $1.8 billion profit in the second quarter of 2018. The unit generated revenue of $4.7 billion, down from $14 billion a year earlier.

Overall operating cash flow swung to a negative $0.6 billion in the quarter, from $4.7 billion in the previous year, "primarily reflecting lower 737 deliveries and production rate as well as timing of receipts and expenditures", says Boeing.

The company did not provide financial guidance for the year, citing uncertainty as regards the timing and the conditions surrounding the Max's return to service. "Disciplined development and testing" is under way, notes Boeing, which intends to submit the final software package to the FAA once it has satisfied all their certification requirements.

It is then up to regulators to decide on the certification process for the software, plus training requirements, as well as the timing on when the aircraft may start flying again.

"This is a defining moment for Boeing and we remain focused on our enduring values of safety, quality, and integrity in all that we do, as we work to safely return the 737 Max to service," states Boeing chief executive Dennis Muilenburg.

The Max has been grounded since March.

Boeing delivered 90 commercial aircraft in the second quarter, down from 194 aircraft in the same period last year.

The second-quarter 2019 deliveries comprise 24 737s, two 747s, 10 767s, 12 777s and 42 787s

Boeing also disclosed a slip to the timeline for the 777X within the quarterly results statement. The first flight is now earmarked for early 2020, rather than this year.

Updated with Boeing Commercial Airplanes results and delivery figures; additional reporting by Jon Hemmerdinger

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