Boeing Profits From Reduced Costs
Boeing made a net profit of USD$1.76 billion in the second quarter, from a $234 million loss in the same period last year.
Revenue dropped in the quarter to end June, down to $22.74 billion from $24.75 billion in 2Q16, as the company eased back production rates of some commercial aircraft. The 737 and 777 are about to be replaced by the 737 MAX and 777X and production rates of the older models are being tweaked as part of the changeover.
The number of commercial aircraft delivered during the quarter fell by 16 to 183.
Boeing pushed costs down 17.6 percent in Q2 to $18.39 billion, as it reduced its workforce by 3,000, compared with end of the first quarter. The resulting operating profit for the quarter came in at $4.35 billion.
The company’s order backlog at the end of June was USD$482 billion, $2.7 billion up on Q1.
“In the second quarter, we added to our large and diverse order backlog with key wins in commercial airplanes, defence, space and services, while achieving important milestones such as delivering the first 737 MAX,” chief executive Dennis Muilenburg said.
The first 737 MAX was delivered to Malaysia’s Malindo Air in May.
Boeing kept its guidance for full year revenue at $90.5 billion-$92.5 billion. Commercial deliveries are expected in the 760-765 range, again unchanged from previous guidance.