- Israel to mark October 7 attack as Gaza war spreads
- Gauff fights back to reach China Open final
- Recovering Stokes ruled out of first Pakistan Test
- Hezbollah battles troops on border as Israel pounds Lebanon
- Alcaraz, Sinner breeze into third round of Shanghai Masters
- Bagnaia wins Japan MotoGP sprint to cut Martin's lead
- Alcaraz breezes into third round of Shanghai Masters
- Gaza cultural heritage brought to light in Geneva
- 'Bullet for democracy': Trump returns to site of rally shooting
- Italy targets climate activists in 'anti-Gandhi' demo clampdown
- South Korean cult-horror series 'Hellbound' returns at BIFF
- Nepalis fear more floods as climate change melts glaciers
- Honduras arrests environmentalist's alleged murderer
- Padres pitcher Musgrove needs elbow surgery
- Supreme Court lets stand rules to curb mercury, methane emissions
- Boston beat Denver in NBA exhibition season opener, but Jokic says omens are good
- Chagos diaspora angry at lack of input on islands' fate
- Biden says 'not confident' of peaceful US election
- US trade chief defends tariff hikes when paired with investment
- Lukaku stars as Napoli beat Como to hold Serie A top spot
- Ohtani set for MLB playoff debut as Dodgers face Padres
- Pogba's drug ban cut to 18 months from four years
- Devine leads New Zealand to big win over India in Women's T20 World Cup
- Bosnia floods kill 16 people
- EU court blocks French ban on vegetable 'steak' labelling
- Prosecutors seek dismissal of rape charges against French rugby players
- Meta AI turns pictures into videos with sound
- Bolivia's Morales says claims he raped a minor are a 'lie'
- MLB Reds hire two-time champion Francona as manager
- Daniel Maldini receives first Italy call-up for Nations League
- US dockworkers return to ports after three-day strike
- Ancelotti points finger at Madrid's 'lack of intensity'
- Haiti reeling after 70 killed in gang attack
- Five Czech kids in hospital over TikTok 'piercing challenge'
- What happens next in Iran-Israel conflict?
- Country star Garth Brooks denies rape accusations
- Stubbs hits maiden century as South Africa make 343-4 against Ireland
- DR Congo to begin mpox vaccination campaign Saturday in east
- Odegaard injury has forced Arsenal to be 'different', says Arteta
- Ratcliffe refuses to guarantee Ten Hag's Man Utd future
- Meta must limit data use for targeted ads: EU court
- Mauritius to hold legislative election on November 10
- Britain qualify for America's Cup final after 60-year wait
- IMF asks Sri Lanka to protect hard-won gains
- Morata returns to Spain Nations League squad after injury
- Irish regulator to probe Ryanair use of facial recognition
- Public allowed to see video evidence in France mass rape trial
- US hiring soars past expectations in sign of resilient market
- Under-fire Ten Hag 'together' with Man Utd hierarchy
- Guardiola talks of Man City love affair as financial hearing rumbles on
Boeing shares dive as 777X delay, Air Force One woes lead to $1.2 bn loss
Boeing shares were in free-fall early Wednesday after the aviation giant reported a $1.2 billion loss in an ugly quarter weighed down by fresh one-time costs on its Russia business, the Air Force One presidential jet and the new 777X plane.
Shares were down around nine percent at $152.30 in early trading after Boeing's results badly missed analyst expectations and revealed yet another delay with its 777X plane.
The loss marks the latest round of disappointing results for the commercial jet maker, which has also suspended deliveries of its 787 plane due to a series of production issues.
Offsetting those negatives somewhat has been the improvement in the commercial air market, as well as progress on ramping up deliveries of the 737 MAX, which was grounded for more than a year following two deadly crashes.
Chief Executive Dave Calhoun acknowledged that the "first quarter presented new challenges," but urged a long-term perspective on the company.
"We are a long-cycle business, and the success of our efforts will be measured over years and decades, not quarters," Calhoun said in a message to employees.
"The deliberate actions we're taking now will drive stability in our operations and position us for long-term, sustainable performance."
The company's loss was more than twice the $537 million shortfall in the year-ago period. Revenues came in at $14 billion, down eight percent.
- Production costs rising -
Boeing said the new timeframe for the 777X, "reflects an updated assessment of the time to meet certification requirements," according to a press release, which also announced plans for a "temporary pause" on production for the aircraft through 2023.
The big US aerospace company now expects first deliveries of the plane in 2025, resulting in a $1.5 billion hit to profits.
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.
In his note to employees, Calhoun said he remained "confident" in the 777X, adding that, "airplane programs serve our market for several decades, and it is important we take the time now to position for long-term success."
Boeing's defense division booked about $1 billion in costs on the presidential plane, Air Force One, and a second military aircraft, the T-7A Red Hawk.
Air Force One suffered from "higher supplier costs, higher costs to finalize technical requirements and schedule delays," while the T-7A was beset with "supply chain constraints, Covid-19 and inflationary pressures," Boeing said.
Boeing has suspended engineering support, flight training and other services for Russia customers. The company had $212 million in costs in the quarter linked to Ukraine.
Boeing announced no new additional costs connected to the 787 Dreamliner, for which deliveries have been halted since May while it works to address problems raised by US air safety regulators.
Calhoun offered no timeframe on resuming deliveries, but said the company had submitted its certification plan to the Federal Aviation Administration, an "important step," he said in his message.
"We also completed the required work on initial airplanes and are conducting Boeing check flights," Calhoun said. "We will continue to give our teams the time they need, engage transparently and follow the lead of our regulator on next steps and timing."
On the positive side, Boeing reported a jump in 737 MAX deliveries during the quarter and said it was on track to lift production of the plane to 31 per-month in the second quarter.
Calhoun also offered an upbeat view on the aviation market, saying the "commercial market recovery is broadening and demand is solid as operators look to bring capacity back online and plan for growth."
Shares sank 9.0 percent to $152.04 in early trading.
A.Silveira--PC