WASHINGTON — Boeing on Wednesday reported a nearly $3.3 billion loss in the third quarter of 2022, driven by problems with some of its key defense programs.
Boeing said higher manufacturing and supply chain costs and “technical challenges” with the KC-46A Pegasus, VC-25B Air Force One, MQ-25 Stingray, and T-7A Red Hawk programs, as well as NASA’s Commercial Crew program were the main cause of the defense, space and security sector’s $2.8 billion in quarterly losses. Other defense sector programs also had “unfavorable performance” that further hurt the quarterly results, the contractor said.
The results marked a significant decline from how Boeing performed in the same quarter a year earlier, when the company recorded a $132 million loss. Boeing’s defense sector reported $436 million in profit during that period.
The company is now facing a nearly $4.4 billion loss so far this year. Its defense sector has lost nearly $3.7 billion during the first nine months of 2022.
The KC-46 tanker program has been a persistent drain on Boeing’s finances in recent years, racking up more than $700 million in charges in the first half of 2022. That is on top of the more than $5.4 billion in charges the KC-46 had recorded by the end of 2021.
The defense unit’s revenue also dropped year over year, from $6.6 billion in the third quarter of 2021 to $5.3 billion in the most recent quarter.
Dave Calhoun, Boeing’s president and chief executive, sent employees a message Wednesday that acknowledged the difficulties in trying to turn the company around.
While Boeing “continue[s] to make important strides in our turnaround effort,” Calhoun said, “we remain in a challenging environment and have more work ahead.”
“Nearly every industry is navigating broad supply chain, inflation, labor and macroeconomic challenges — and we’re certainly no different,” Calhoun continued. “We’re realistic about the environment we face and are taking comprehensive action.”
Calhoun touted the delivery of four MH-139A Grey Wolf test helicopters to the Air Force, and Boeing’s receipt of contracts with the U.S. and Israeli air forces for more KC-46s. He also pointed to Poland’s selection of the AH-64E Apache for its new attack helicopter fleet, and the opening of three new facilities including its Advanced Composite Fabrication Center in Arizona.
“We’re doing important work and are making meaningful progress, together,” Calhoun said. “Turnarounds take time — and we have more work to do — but I am confident in our team and the actions we’re taking for the future.”
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