Boeing reported its first quarterly profit since 3Q2019 on Wednesday driven by higher commercial planes and services volumes as the travel sector staged a recovery from the post pandemic slump. The company reported a profit of $567mn during the quarter against a loss of $2.4bn YoY. Revenues were up 44% to $17bn in 2Q2021 vs $11.8bn in 2Q2020. Operating margins improved to 6% from negative -25.1% and the core EPS came at $0.40/share against a loss of -$4.79 last year. Higher commercial deliveries, higher order receipts and lower expenditure improved the operating cash flow to negative $483mn vs. negative -$5.3bn last year. The cash and marketable securities decreased to $21.3bn compared to $21.9bn in 1Q2021. The total liabilities of the company reduced to $16.7bn as of June 30, 2021 from $17.1bn last year. The breakdown of the revenue by segment is as follows.
  • The commercial segment contributed $6bn to revenues through the sale of 79 airplanes vs. $1.6bn through the sale of 20 airplanes in the corresponding quarter last year driven by higher commercial airplane deliveries. The company delivered more than 130 737 Max jets since these were cleared by the FAA in November 2020 and is progressing on the problems with its 787 productions
  • The defence, space and security segment contributed $6.9bn this quarter vs. $6.6bn last year driven by higher KC-46A tanker and P-8A Poseidon volume
  • The global services contributed $4.1bn to the revenue, up from $3.5bn in 2Q2020 driven by higher commercial services volume

CEO Dave Calhoun said, “While we still have ways to go before a full rebound, it is encouraging to see the commercial market improving, enabled by continued vaccine distribution and increasing travel demand, particularly in domestic markets,” while cautioning that the delta variant could lead to a lower demand for wide-body jets.

Boeing’s 4.508% 2023s and 5.705% 2040s were up 0.05 and 1.42 respectively to trade at 106.22 and 130.48.
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