Boeing Co. posted a quarterly loss as the worldwide grounding of the 737 Max hit the aircraft maker’s finances.
Chicago-based Boeing today reported a loss of $2.94 billion, or $5.21 a share. Revenue for the quarter plunged to $15.8 billion, down 35 percent from the same period a year ago.
The loss was the largest for Boeing in 10 years, according to a Reuters graphic.
The 737 Max was grounded following two crashes that killed 346 people. Boeing is attempting to come up with a software fix that will satisfy regulators the aircraft is safe to resume flight.
“This is a defining moment for Boeing,” CEO Dennis Muilenburg said in a statement.
The company, he said, is focused “on our enduring values of safety, quality, and integrity…as we work to safely return the 737 Max to service.”
Boeing said last week the 737 Max grounding resulted in a hit of $4.9 billion, or $8.74 a share, on second-quarter results. Today’s earnings report provided a more detailed picture of the 737 Max impact on Boeing.
The 737 Max is one of Boeing’s most important aircraft. Before the fatal crashes, it was in demand by airlines. In the second quarter, Boeing commercial aircraft deliveries dropped to 90 for the quarter, down more than half compared with 2018’s second quarter as carriers cut back on 737 Max deliveries.
The company had negative cash flow — more cash going out than coming in — of $590 million for the quarter. Boeing’s positive cash flow of $4.68 billion in the year-earlier period.
Boeing said it had an operating loss of $3.38 billion, with a “core” operating deficit of $5.82 a share. The commercial aircraft unit had an operating loss of $4.95 billion.
The aircraft maker has not revised its annual financial forecast because of the 737 Max grounding. The timing of when the 737 Max returns to service remains uncertain.
For 2019’s first half, Boeing posted a loss of $793 million. That compares with a profit of $4.67 billion for the first six months of 2018.