Boeing warns of job cuts as coronavirus spurs 4th straight quarterly loss
The planemaker aims to trim its global workforce to 130,000
Sources tell FOX Business' Charlie Gasparino that Wall Street traders and investors are prepping for a market reaction as the coronavirus vaccine is poised for distribution.
Boeing Co. reported a fourth straight quarterly loss and warned employees of job cuts as the coronavirus pandemic and grounding of the 737 Max aircraft continued to weigh on sales.
The Chicago-based planemaker lost $401 million, or an adjusted $1.39 per share, in the three months through September, better than the $2.52 loss that analysts surveyed by Refinitiv were anticipating.
Revenue fell 29% from a year ago to $14.1 billion, edging out the $13.9 billion that was expected.
The company said it expects to reduce its global workforce to about 130,000 employees by the end of 2021, down from the current level of approximately 145,000.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BA | THE BOEING CO. | 138.13 | -1.80 | -1.29% |
“The global pandemic continued to add pressure to our business this quarter, and we're aligning to this new reality by closely managing our liquidity and transforming our enterprise to be sharper, more resilient and more sustainable for the long term," said Boeing CEO Dave Calhoun. "Our diverse portfolio, including our government services, defense and space programs, continues to provide some stability for us as we adapt and rebuild for the other side of the pandemic."
Revenue from commercial planes slumped 56% year-over-year to $3.6 billion as Boeing delivered 28 aircraft, less than half of the 62 delivered in the July-through-September period last year, as the pandemic sapped demand from airline customers whose business has been crushed by transmission concerns. The company delivered three 737 aircraft during the quarter.
Boeing has a total backlog of $393 billion, including more than 4,300 commercial planes.
Defense, space and security sales slipped 2%, mostly due to timing around the awarding of contracts, which was partially offset by higher fighter jet volume.
Looking ahead, Boeing has made progress in returning the 737 MAX aircraft to the skies, conducting certification and validation flights for regulators in the U.S., Canada and Europe.
A date has not yet been set for when the aircraft will be cleared to fly. The best-selling model in Boeing's history, the MAX was sidelined by regulators worldwide after two fatal crashes overseas raised concerns that new anti-stall software could interfere with takeoff in some cases.
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Boeing shares were down 52% this year through Tuesday, lagging the S&P 500's 4.95% gain.