Boeing narrows Q3 loss as defence sales strengthen

(Sharecast News) - Aerospace giant Boeing narrowed thirdquarter losses as stronger defence sales helped offset continued weakness in its commercial aircraft business, though chief executive Kelly Ortberg said on Tuesday that the group still had "more work to do".

Boeing delivered a $116m net loss for the three months to 30 September, sharply reduced from the $5.34bn hit a year earlier, when it absorbed a near $5bn charge on its longdelayed 777X programme.

On an adjusted basis, Boeing reported a $0.34 pershare loss, wider than analysts had expected, while revenues rose 4% yearonyear to $24.19bn, and free cash flow improved to $464m from $238m.

Defence revenue jumped 15% to $7.94bn, helping lift group performance, but commercial aircraft sales fell 3% to $10.72bn as the unit posted a 6.5% operating margin, reflecting a weaker delivery mix, higher projected costs tied to future production rate changes and ongoing supplychain pressures.

Boeing said it had delivered 161 commercial jets in the quarter, one more than at the same time a year earlier. The firm has been producing roughly 47 of its 737 Max planes a month, but hopes to increase that number in the near future.

"Looking ahead, expectations are rising, and they should," Ortberg said. "That means elevating our performance through lean, productivity and efficiency improvements in our day-to-day work while upholding our high levels of safety and quality."

As of 1510 GMT, Boeing shares were down 6.87% at $175.38 each.

Reporting by Iain Gilbert at Sharecast.com