The world’s largest planemaker has reported a 55% year over year drop in the second-quarter revenues as it has delivered only 20 commercial airplanes during the quarter.
Its second-quarter commercial airplanes revenue plunged 78% year over year while the defense, space and security revenue remained flat and global services revenue shirked 23%. Its second-quarter operating cash flow came in at negative $5.3bn and total debt exceeded $61bn.
“The diversity of our balanced portfolio and our government services, defense, and space programs provide some critical stability for us in the near-term as we take tough but necessary steps to adapt for new market realities,” Boeing president and chief executive officer Dave Calhoun said.
The world’s largest plane maker says it has already resumed production at many sites with hard healthcare protocols following a temporary pause. It has also restarted the early stages of production on the 737 programs.
Boeing stock price has lost almost half of its value since the start of this year as travel restrictions have significantly impacted passenger airplane demand and outlook. Its shares are currently trading around $160, down sharply from previous all-time high of $460 that it had hit last year.
“These past few months have been unlike anything we’ve seen. The reality is the pandemic’s impact on the aviation sector continues to be severe,” David Calhoun added.
Vertical Research analyst Rob Stallard says Boeing’s second-quarter results are worse than the expectations as almost every metric highlights a difficult time for the planemaker.
The analyst also claims the impact of financial numbers hasn’t been yet fully reflected in the stock price performance. Stallard provides Boeing stock a Hold rating with a $153 price target.