CHICAGO (dpa-AFX) - Boeing Co. on Wednesday reported a 51 percent fall in profit for the third quarter from last year, reflecting lower deliveries of the Boeing 737 aircraft. Adjusted earnings per share for the quarter missed analysts' estimates, while revenues beat their expectations.
The company also said it expects regulatory approval of the 737 MAX return to service will begin in the fourth quarter of 2019, and it will gradually increase the 737 production rate from 42 per month to 57 per month by late 2020.
Boeing has been reeling under the impact of the two deadly crashes related to its 737 Max aircraft. The 737 Max, Boeing's best-selling aircraft, were grounded by airlines worldwide earlier this year following the crashes.
For the third quarter, Boeing's net earnings were $1.17 billion or $2.05 per share, down from $2.36 billion or $4.07 per share in the year-ago quarter.
Excluding special items, core earnings for the quarter were $1.45 per share, compared to $3.58 per share in the prior-year quarter.
Revenues for the quarter declined 21 percent to $19.98 billion from $25.15 billion in the same quarter last year, reflecting lower 737 deliveries partially offset by higher defense and services volume.
On average, analysts polled by Thomson Reuters expected the company to report earnings of $2.09 per share for the quarter on revenues of $19.67 billion. Analysts' estimates typically exclude special items.
Total company backlog at quarter-end was $470 billion and included net orders of $16 billion. Commercial Airplanes backlog included nearly 5,500 airplanes valued at $387 billion.
During the quarter, Commercial Airplanes delivered 62 airplanes, down 67 percent from 190 aircraft in the year-ago period. Boeing noted that due to the current global trade environment, the 787 production rate will be reduced to 12 airplanes per month for about two years beginning in late 2020.
The company added that 777X program is progressing through pre-flight testing and remains on track for first flight in early 2020. The company is now targeting early 2021 for first delivery of the 777X.
Boeing said it has developed software and training updates for the 737 MAX and continues to work with the FAA as well as global civil aviation authorities to complete the remaining steps toward certification and readiness for return of the aircraft to service.
Copyright RTT News/dpa-AFX