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Boeing (BA) 3Q 2021 earnings report: Cut to Dreamliner production

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One employee is seen working on the tail end of a Boeing Co. Dreamliner787 plane at their final assembly facility, North Charleston in South Carolina.

Travis Dove | Bloomberg | Getty Images

BoeingWednesday’s announcement by Boeing that its 787 Dreamliners had flaws would result in $1 billion of additional costs, and it reduced production to only two planes per month while it investigates quality issues that forced it to suspend delivery for the majority of the year.

This amount was reduced by $183 Million in the third quarter.

Boeing announced that it saw a 9% increase in revenue to $15.28billion in the third quarter compared to $14.3 billion last year. The reason was an increase in aircraft deliveries and sales. This was lower than the analyst’s estimate of $16.3 billion. The net loss was $132million, but it was smaller than the $466 that it suffered a year prior.

Premarket trading saw Boeing shares rise 1.1%

Below is a comparison of how the company did against analysts’ estimates, compiled by Refinitiv.

  • Adjusted results:An expected loss of 20c per share, versus a loss of 60c per share
  • Revenue 15:28 billion is expected vs. 16.3 billion.

Boeing revealed quality problems with the fuselages of some 787s in 2013 for the first time. Boeing had to stop delivering the planes to customers last year due to inspections. This led to the loss of money.

Delivery resumed this year for a short time, but was halted in May due to more inspections. Analysts estimate that Boeing currently has around 100 planes in its inventory. Boeing has reduced its production of jetliners several times. Boeing claimed that the company was producing less than five aircraft per month this summer.

Since the three-year-old fatal 737 Max crash, Boeing has faced back-to-back crisis after another. Boeing had to deal with the 20-month grounded of its planes. However, the pandemic had a devastating effect on travel and aviation demand. The company’s shares have lost 2% so far this year through Tuesday’s close, compared with a 22% gain in the S&P 500.

Boeing executives are available to answer analyst questions at 10:30 am. ET Wednesday call

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