Washington, Oct 27 — US aerospace giant Boeing reported a sharp reduction in its third-quarter losses on Tuesday as revenue rose four per cent to $24.2 billion, driven by stronger defence and services businesses, even as its commercial aircraft division continued to struggle with production costs.
The Arlington, Virginia-based company reported a net loss of $116 million for the July-September quarter, compared with a loss of $5.34 billion during the same period last year.
Revenue increased from $23.27 billion to $24.19 billion, while the company's total order backlog reached a record $745 billion, including more than 6,300 commercial aircraft.
The company's adjusted loss narrowed to 34 cents per share from $7.47 a year earlier.
Boeing delivered 161 commercial aircraft during the quarter, compared with 160 in the corresponding period last year.
However, revenue from its commercial aircraft business declined three per cent to $10.7 billion, reflecting a less favourable mix of deliveries and higher production-related costs.
The division reported an operating loss of $697 million, significantly smaller than the $5.35 billion loss recorded a year earlier.
Boeing said higher estimated supply-chain costs and expenses associated with planned production adjustments continued to weigh on profitability.
The company is working towards stabilising production of its 737 aircraft at 47 planes per month.
Production of the 787 Dreamliner remained steady at eight aircraft per month.
The company reported progress on two variants of its 737 MAX family.
The Federal Aviation Administration granted amended type certification to the 737-7 during the third quarter, while the 737-10 received certification in October.
Boeing also said certification flight testing of its long-delayed 777-9 aircraft was progressing, with the first delivery still expected in 2027.
The company booked 300 net commercial aircraft orders during the quarter, including orders from Turkish Airlines, Ethiopian Airlines and Lufthansa.
Its commercial aircraft backlog reached a record $612 billion.
"Recent milestones, including certification of the 737-7 and 737-10 and selection to design and build the Navy's sixth-generation fighter aircraft, are important steps as we continue building on our progress," Boeing President and CEO Kelly Ortberg said.
Boeing's defence, space and security division reported a 15 per cent increase in quarterly revenue to $7.9 billion.
Operating earnings rose to $492 million from $114 million a year earlier.
The division benefited from higher business volumes, improved operational performance and a $252 million gain from the sale of HRL Laboratories.
Boeing said it had been selected by the US Navy to design and build the F/A-XX next-generation fighter aircraft.
The company also received a seven-year contract to expand production of PAC-3 missile seekers.
Boeing Global Services reported quarterly revenue of $5.6 billion, up four per cent from a year earlier.
Operating earnings increased nine per cent to approximately $1 billion.
The division secured a US Army contract to provide maintenance services for the AH-64 Apache helicopter fleet.
Its backlog stood at $33 billion at the end of September.
Ortberg said Boeing remained focused on improving safety, quality and operational discipline.
"But we are not done. We remain focused on safety and quality as we redouble our efforts on Lean and disciplined execution to deliver on our commitments and build the durable performance our stakeholders expect," he said.