The Boeing Company has reported second-quarter revenue of US$15.8 billion, GAAP net loss of (US$2.9) billion, loss per share of (US$5.21) and core loss per share (non-GAAP) of (US$5.82), reflecting the previously announced 737 MAX charge (which reduced revenue by US$5.6 billion and earnings by US$8.74 per share) as well as lower 737 deliveries partially offset by higher defense and services volume. Boeing recorded operating cash flow of (US$0.6) billion and paid US$1.2 billion of dividends.
The previously issued 2019 financial guidance does not reflect 737 MAX impacts. Due to the uncertainty of the timing and conditions surrounding return to service of the 737 MAX fleet, new guidance will be issued at a future date. Boeing is working very closely with the FAA on the process they have laid out to certify the 737 MAX software update and safely return the MAX to service. Disciplined development and testing is underway and Boeing said it will submit the final software package to the FAA once they have satisfied all of their certification requirements. Regulatory authorities will determine the process for certifying the MAX software and training updates as well as the timing for lifting the grounding order.
Boeing also reported that the 777X program is progressing well through pre-flight testing. While the company is still targeting late 2020 for first delivery of the 777X, there is significant risk to this schedule given engine challenges, which are delaying first flight until early 2020.
Commercial Airplanes backlog remains healthy with more than 5,500 airplanes valued at US$390 billion.