The American giant Boeing released this Wednesday, October 28, the results of the third quarter, reporting a year-on-year drop in revenues of 29%, corresponding to US $ 14,1 billion (about US $ 11,9 billion). euros), compared to the 19,9 billion dollars (about 16,8 billion euros) recorded in the third quarter of 2019.
This drop in revenue results in a loss per share of $ 0,79 (or 0,66 euros) under GAAP accounting standards (Generally Accepted Accounting Principles), or a loss per share (under non-GAAP standards) of $ 1,39 (or 1,17 euros), reflecting, according to Boeing, “a lower volume of commercial deliveries and services due to the effects of the pandemic Covid-19, ”says Boeing.
"THE 'backlog'- the company's delayed workflow - at the end of the third quarter of 2020 was $ 393 billion (about € 332,5 billion), ”says Boeing. From January to September this year the company delivered 67% fewer planes than in the same period in 2019 and says it has 4.300 planes in its portfolio - which it has not yet manufactured -.
Boeing's net losses in the third quarter of 2020 amounted to $ -466 million (about -394,3 million euros) or -449 million attributable to shareholders, compared with a profit of 1,1 billion dollars (about 0,9 billion euros) obtained in the same period of 2019.
Accumulated from January to September 2020, Boeing's losses amount to -3,5 billion dollars (about 2,9 billion euros) or -3,4 billion dollars attributable to shareholders, which compares with a profit of 374 million dollars (about 316,4 billion euros) recorded in the first nine months of 2019.
From January to September 2020, the company's revenues stood at US $ 42,8 billion (about 36,2 billion euros), 27% less than US $ 58,6 billion (about 49,5 , 2019 billion euros) recorded in the same period of XNUMX.
In the period under review, Boeing reported a negative operating cash flow of -4,8 billion dollars (about -4,06 billion euros), which reflects an increase in relation to the cash flow negative operating income recorded in the third quarter of last year, which was -2,4 billion dollars (about -2,03 billion euros).
“Cash on hand and investments in marketable securities decreased to $ 27,1 billion at the end of the third quarter of 2020, compared to the 32,4 billion that Boeing recorded at the beginning of this quarter,” says American company. Boeing's debt amounts to US $ 61,0 billion, slightly lower than what was reported - US $ 61,4 billion - at the beginning of the quarter, which Boeing justifies by the “payment of outstanding debts”.
Boeing's commercial aircraft production sector “delivered 28 planes during the third quarter,” 55% less than the 62 planes the company delivered in the same period in 2019. From January to the end of September 2020, Boeing delivered 98 planes commercial, 67% less than the 301 planes it had delivered in the first nine months of 2019, the Chicago-based company revealed, adding that its order book for commercial planes included more than 4.300 planes valued at $ 313 billion (about 264,8 billion euros).
According to Boeing data, the 301 airplanes it delivered in the first nine months of 2019 generated revenues of US $ 24,7 billion, and in the same period this year, the revenues corresponding to the delivery of 98 commercial airplanes only totaled 11,4 billion. dollars, that is, 54% less. Revenue from sales of the 28 planes that Boeing delivered in the third quarter of 2020 stood at US $ 3,6 billion, against 8,2 billion in the same quarter of 2019.
“Revenue from the sale of commercial aircraft in the third quarter decreased to 3,6 billion, reflecting the lower volume of deliveries, mainly due to the impacts of the Covid-19, as well as quality problems with the 787 and repairs related to these models ”, says the company.
"Operating margin for the third quarter decreased to -38,1% (from -0,5% in the third quarter of 2019), driven mainly by lower delivery volume as well as $ 590 million in production costs' abnormal 'related to the 737 model program, ”Boeing said. In October, Boeing decided that "it will consolidate the production of the 787 model in South Carolina in mid-2021, which did not have a significant financial impact on the program in the third quarter," says the Chicago company.
“The global pandemic continued to increase the pressure on our businesses during the third quarter, so we are aligned with this new reality, managing our liquidity according to this reality and transforming our company to be more resilient and sustainable in the long term”, commented Boeing President and CEO David Calhoun.
“Our portfolio is diversified, including our government services, the Defense area and space programs, which continues to provide Boeing with some stability, while adapting and rebuilding the activity according to the opportunities detected in this pandemic situation”, highlighted David Calhoun.
“We remain focused on the health and safety of our employees and their communities,” said the Boeing president, expressing himself “proud of the dedication and commitment that our teams have shown in continuing to respond to the needs of our customers”.
“Despite the headwinds experienced in the short term, we remain confident in Boeing's future in the long term and we are focused on sustaining critical investments and significant actions to strengthen our safety culture, improve transparency and rebuild trust,” said David Calhoun at results presentation made on the morning of 28 October.