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The Boeing Company reported third-quarter (Q3) revenue of $ 14.1 billion on Wednesday, down 29 percent from the same period in 2019.
The company reported a non-GAAP basic loss per share of $ 1.39 and negative operating cash flow of $ 4.8 billion.
Third-quarter revenue from its commercial aircraft declined to $ 3.6 billion, reflecting lower delivery volume primarily due to the impacts of COVID-19, as well as 787 quality issues and associated rework, according to the report.
The company’s commercial aircraft deliveries fell 55 to 28 percent, compared with 62 percent in the third quarter of 2019. Deliveries through September 30 reached 98 percent, including two 777F aircraft to China Southern Airlines and two 737 aircraft to China Eastern Airlines.
The ongoing profound impacts of COVID-19 on the commercial aviation market are reflected in Boeing’s lower revenue, profits and cash flow compared to the same period last year, said its president and CEO Dave Calhoun.
As the company resizes its operations to align with market realities, Boeing expects to continue reducing overall staffing levels through wear and tear, as well as voluntary and involuntary reductions in the workforce, according to the quarterly report.
Business units and company functions are making personnel decisions to prioritize wear and tear and stability to limit the impact on people and the company, Calhoun said.
“We anticipate a workforce of approximately 130,000 employees by the end of 2021. Throughout this process, we will communicate with you every step of the way,” Calhoun told employees in a note to staff.
Boeing, which employs more than 160,000 people around the world, said it continues to adapt to the impacts of COVID-19 on the market and position the company for the future.
According to Calhoun, since the beginning of the pandemic, Boeing has increased liquidity, reduced spending, simplified reporting structures, and slashed commercial production rates.
“We are also transforming Boeing by remodeling our infrastructure, streamlining our overhead and organizational structure, rebalancing our portfolio and investment mix, and strengthening the health of our supply chain,” he said.
