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Boeing reports quarterly losses as jet problems continue

Boeing Co.

BA -7.97%

reported a quarterly loss of $ 1.24 billion as it reported another round of setbacks on its jetlines and military programs, with supply chain problems and Russian sanctions also weighing on the results.

The aerospace giant on Wednesday again pushed the expected first delivery of its new 777X twin-aisle jet back until 2025, five years later than planned, though the company said it had moved one step closer to resuming deliveries of the 787 Dreamliner in the middle of a prolonged freezing.

Airlines continue to struggle with supply chain issues, but Boeing has struggled with a number of other challenges on many of its commercial and military aircraft, including the aircraft that will serve as the next Air Force One.

The easing of pandemic-related travel restrictions has helped flights recover in recent months, which has increased jet orders for Boeing and Airbus SE, both of which are increasing jetliner production.

Boeing said it would halt production of the 777X, which can carry about 400 passengers, and begin reserving $ 1.5 billion in charges from the current quarter to reflect the move. The company had already taken a $ 6.5 billion charge two years ago on the 777X, which will be its largest jet when production of the 747 jumbo ends later this year.

The 787 Dreamliner, another Boeing wide-body jet, also continues to weigh on the results, with low-level production as the company addresses quality issues that have frozen almost all deliveries since October 2020.

Boeing booked $ 312 million in additional costs on the 787 during the quarter, part of an expected $ 2 billion bill for delayed production. The company said it has submitted a plan to address quality issues to the Federal Aviation Administration, which has the final say in allowing them to resume.

The FAA said Wednesday that security is controlling the pace of the agency’s reviews.

Boeing missed Wall Street’s first-quarter earnings and sales forecasts through March 31, though it maintained its free cash flow guidelines – needed to pay off the debt it raised to cope with the pandemic – in order to stay positive this year. It burned through $ 3.2 billion in cash in the most recent quarter.

The adjusted loss per. share of $ 2.75 compared to the consensus of a 25 cent loss among analysts polled by FactSet.

Boeing shares fell more than 3% in pre-market trading.

Chicago-based Boeing charged $ 660 million on the VC-25B presidential jet and $ 367 million on the new T-7A Air Force trainer, which it said reflected supply chain problems, scheduling delays and inflationary pressures. It also required a $ 212 million tax to reflect contract costs related to sanctions against Russia and the war in Ukraine.

Sales for the quarter fell 8% to $ 14 billion, with analysts expecting $ 16 billion. Boeing has delivered 737 MAX jets at a slower pace than analysts expected, saying it would raise its monthly production to 31 during this quarter.

China has not re-certified MAX to resume flights, and Boeing still needs to secure FAA approval for two versions of the aircraft.

Boeing has not provided guidance on sales, earnings and jet deliveries since 2019, but analysts had expected Boeing to return to a profit of $ 2.7 billion this year after losing $ 4.3 billion in 2021 and nearly $ 12 billion in 2020 .

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Write to Doug Cameron at doug.cameron@wsj.com

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