Companies are trying to adapt to the everchanging environment to avoid a worst-case scenario. This makes sense, as the coronavirus pandemic created a lot of problems, even for the major companies. World-famous company Boeing was struggling to deal with their problems even before the coronavirus reached the U.S. However, the pandemic created additional pressure on the company.
On Wednesday, Boeing reported a $2.4 billion loss for the second quarter. According to the company, it plans to slow the production of its main commercial aircraft as the coronavirus pandemic had a negative impact on the industry. Its best-selling aircraft, Boeing 737 Max, remains on the ground for more than a year.
Interestingly, Boeing’s shares were up by less than 1% in premarket trading. However, the stock is trading at roughly half its value compared to the same period of time in 2019. As mentioned above, Boeing 737 Max has been grounded for more than a year, more precisely since March 2019. Moreover, it will take at least a couple of months until this plane will be able to return to commercial service.
Boeing and its second-quarter results
Let’s have a look at the results. Unfortunately, results were far worse than the expectations. For example, losses per share reached $4.79 vs $2.54 expected. Moreover, revenue also fell to reach expectations. In the second quarter, the company’s revenue was $11.8 billion. Importantly, compared to the second quarter of 2019, the revenue fell from $15.75 billion to $11.81 billion.
The second quarter ended on June 30. Interestingly, compared to the same period of time last year, Boeing’s net loss fell from $2.94 billion or $5.21 per share to $2.40 billion or $4.20 per share.
Boeing confirmed its decision to lower its planned ramp-up of production on Wednesday. Based on the information provided by the company, this would gradually increase the manufacturing of its 737 Max to 31 a month by the beginning of 2022. As a reminder, the company wanted to reach this goal by 2021. Moreover, Boeing will cut the production of its 787 planes to six a month in 2021. Currently, the company has hundreds of planes sitting on the ground, most of them 737 Max jets. The company is ready to do whatever it can to minimize the impact of the coronavirus pandemic.
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