Boeing reports $1.2 bn loss on 777X delay, Russia costs
Apr 28, 2022 - 06:16 AM
NEW YORK — Boeing reported a $1.2 billion first-quarter loss Wednesday, hit by a series of new one-time costs on its Russia business, the Air Force One presidential jet and the new 777X plane.
The big US aerospace company now expects first deliveries of the 777X in 2025, resulting in a $1.5 billion hit to earnings. Results were also dented by costs of $1 billion connected to Air Force One and a second military aircraft, the T-7 Red Hawk, and $212 million related to the conflict in Ukraine.
The loss marks the latest round of disappointing results for the commercial jet maker, which has also suspended deliveries of its 787 jet due to a series of production issues.
Revenues came in at $14 billion, down eight percent, and — as with profits — missing analyst estimates.
Work on the 777X began in 2013, but the timeframe has been repeatedly pushed back as Boeing works to address certification questions from US air safety regulators. Under the most recent schedule prior to Wednesday’s deliveries, Boeing was to commence deliveries in late 2023.
Shares tumbled 4.2 percent to $160.10 in pre-market trading.