Boeing ($BA) reported a $3.3B loss in the third quarter on Wednesday, which included significant hits to its space and defense business segment.
The losses to fixed-price programs, including the Starliner capsule built for NASA’s Commercial Crew program, were partially offset by more commercial airplane sales.
By the numbers:
- 3Q revenue = $16B, up 4% from last year
- Jan-Sept revenue = $46.6B, down 2% from 2021
- GAAP loss per share = $5.49
- Core non-GAAP loss per share = $6.18
Space and defense: Boeing’s space and defense sector reported $5.3B in 3Q revenue, down 20 percent from last year. The sector also reported a $2.8B loss in the quarter driven by increased manufacturing and supply chain costs on fixed-price programs as well as “technical challenges.” Overall, the segment has lost nearly $3.7B in the first nine months of the year.
“While current performance doesn’t reflect where we’d like to be for sure, we’re focused on driving execution stability,” CFO Brian West said on a call with investors. “These programs have an outsized impact on BDS margins and will be key to margin recovery in future periods.”
The space and defense segment also has a $55B backlog, about a third of which is from international customers.
New faces: News about the rough quarter follows Boeing’s appointment of Steve Parker, who leads the bomber and fighter programs, to be chief operating officer of the troubled defense and space segment.
More to come: Execs promised more details at Boeing’s investor conference on Wednesday in Seattle.