American planemaker, Boeing, posted a $2.4 billion loss in Q2 2020 (April to June), compared to a net loss of $2.942 billion during the same period last year.
Revenue fell 25 per% to $11.81 billion from $15.75 billion posted during the same period last year, with expenses declining 27% year-on-year to $13 billion.
Commercial Airplanes lost $2.8 billion in the second quarter, an improvement from the second quarter of 2019 when it lost $4.9 billion.
The commercial division generated $1.6 billion in revenue during the second quarter, down 65% from $4.7 billion from the second quarter of 2019.
Global Services lost $672 million in the second quarter, reversing a $687 million profit in the same period last year.
Defence, Space and Security earned a $600 million profit in the second quarter, down 38% from the same period last year.
Boeing’s net loss narrowed to $2.40 billion, or $4.20 per share, from $2.94 billion, or $5.21 per share, a year earlier, when it posted a nearly $5 billion charge on its troubled 737 Max program. The company recorded operating cash flow of $5.3 billion.
Boeing ended the second quarter with $32 million in cash and marketable securities. It recently secured $25 billion in additional financing and had $61 billion in debt at the end of the period, up from $39 billion at the end of March.
The company revealed earlier in July that it was able to deliver only 20 commercial aeroplanes last quarter — the lowest number of commercial aeroplanes delivered in a quarter by Boeing since 1977. 60 Boeing aircraft orders were cancelled last month, adding to the 150 orders cancelled in March, 108 in April, and 18 more in May.
For Q2 2019, Boeing delivered 90 commercial aircraft. In the quarter before that, it delivered 169 aircraft in the 1st quarter of 2019.
Although Boeing has more than 4,500 orders in its backlog at a declared value of $326 billion, the June results mean the company has 843 cancelled or uncertain orders in 2020, compared to only 59 new orders.
The company counted only one new sale last month: a 767 freighter destined for FedEx.
To help ease the financial pressure, Boeing CEO, Dave Calhoun, now says the company has temporarily stopped paying investor dividends, halted its stock buyback program, cut spending and costs, and has taken on $25 billion in debt.
Elsewhere, Heathrow Airport reported a loss of $1.2 billion in the first half of the year, as passenger numbers dropped by 60%.