18% Sales Increase and Positive Turnaround in Free Cash Flow
The United States' largest aircraft manufacturer, Boeing, posted second-quarter results that exceeded market expectations amid growing air passenger demand.
On the 26th (local time), Boeing announced in its earnings report that its second-quarter revenue reached $19.8 billion (approximately 25.25 trillion KRW), an 18% increase compared to the same period last year. This significantly surpassed the market forecast of $15.867 billion.
The net loss was $149 million, similar to the $160 million loss in the same period last year, but slightly better than market expectations.
Free cash flow turned positive at $2.6 billion, a significant improvement from a negative $182 million in the same period last year. Boeing expects to generate free cash flow of $3 to $5 billion for the full year.
The increase in revenue is attributed to a clear recovery in passenger demand, leading airlines to increase their orders for new aircraft. However, due to accumulated losses over three years caused by the COVID-19 pandemic and parts supply shortages, it is expected to take more time to return to profitability.
With the resumption of operations of Boeing's flagship model, the 737 Max, which had been grounded following two crashes, production is gradually increasing. Boeing plans to raise production of the 737 line, including the 737 Max, from 31 to 38 units per month.
On the day, Boeing's stock, listed on the New York Stock Exchange, closed up more than 8% following the news that its earnings exceeded expectations.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
