The Boeing Company [NYSE: BA] reported second-quarter revenue of USD 11.8 billion, GAAP loss per share of (USD 4.20) and core loss per share (non-GAAP) of (USD 4.79), the company said.
The revenue for second quarter primarily reflects the impacts of COVID-19 and the 737 MAX grounding. Boeing recorded operating cash flow of (USD 5.3) billion.
In the second quarter, Boeing restarted production operations across key sites following temporary pauses to protect its workforce and introduce rigorous new health and safety procedures. Despite the challenges, Boeing continued to deliver across key commercial, defense, space and services programs. The company also resumed early stages of production on the 737 program with a focus on safety, quality and operational excellence.
Commercial Airplanes´ second-quarter revenue and operating margin decreased reflecting lower delivery volume, partially offset by a lower 737 MAX customer consideration charge of USD 551 million in the quarter compared to a USD 5.6 billion charge in the same period last year.
Second-quarter operating margin was also negatively impacted by USD 712 million of abnormal production costs related to the 737 program, USD 468 million of severance expense and USD 133 million of abnormal production costs from the temporary suspension of operations in response to COVID-19.
The 737 program resumed early stages of production in May and expects to continue to produce at low rates for the remainder of 2020.
The 787 production rate will be reduced to 6 per month in 2021. The 777/777X combined production rate will be gradually reduced to 2 per month in 2021, with 777X first delivery targeted for 2022. At this time, production rate assumptions have not changed on the 767 and 747 programs.
Defense, Space & Security´s second-quarter revenue was USD 6.6 billion, reflecting COVID-19 impact on derivative aircraft programs, partially offset by higher volume across the remainder of the portfolio.
Second-quarter operating margin decreased to 9.1 percent primarily due to a gain on sale of property in the second quarter of 2019 and a USD 151 million KC-46A Tanker charge primarily driven by additional fixed cost allocation resulting from lower commercial airplane production volume due to COVID-19.
During the quarter, Defense, Space & Security received an award for three additional MQ-25 unmanned aerial refueling aircraft for the US Navy, as well as contracts for Cruise Missile Systems for the US Navy and a contract for 24 AH-64E Apache helicopters for the Kingdom of Morocco.
Backlog at Defense, Space & Security was USD 64 billion, of which 31% represents orders from customers outside the US.