Boeing Reports Smaller Loss but Trade War Threats Loom

Boeing Reports Smaller Loss but Trade War Threats Loom

Boeing said Wednesday that he was moving towards the increase in the production of his commercial airplanes and stabilizing his business after a quality crisis, but the company faces new threats to interruption of President Trump’s commercial war.

The company lost $ 31 million in the first three months of this year, a narrower loss than analysts expected. In the same period last year, the company lost more than $ 350 million.

The most recent Boeing crisis begged a poorly installed panel that moved away from a relatively new flight from the duration of the plane in January 2024. A strike of two -month workers in the fall also stagnated the production of 737 Max, the best -selling plane in Boeing.

The company delivered 130 aircraft in the first quarter, compared to 83 a previous year. He also secured a contract to build the new air force combat plane, the F-47, and brought $ 19.5 billion at the El Quarterian revenue, an 18 percent increase.

“There is a lot of work that is happening in all our teams, and we are seeing positive results,” said Boeing executive director Kelly Ortberg, in a message to employees, describing 2025 as “our year of response.”

The price of Boeing shares closed 6 percent on Wednesday.

On Tuesday, the company announced plans to sell several digital businesses for $ 10.5 billion to Thoma Bravo, a private capital firm.

“This was a good quarter for Boeing,” said Peter McNally, head of analysts of the global sector at Third Bridge, a research firm. He added that digital businesses had sold for more than expected.

Mr. Ortberg, who joined Boeing last summer, wants to forward the company in the main business of making aircraft. In a call with analysts on Wednesday, he said that the monthly production of 737 Max was in the 30s of the 30s, from the bass to the mid -20 in January, and should reach 38 in the coming months.

The company cannot exceed that rate without the approval of the Federal Aviation Administration, which limited the maximum production after the panel burst last year. Mr. Ortberg said Boeing planned to look for approval to produce 42 aircraft by the month at the end of this year. Boeing would like to have 47 maximum airplanes per month just six months later.

Boeing has also stabilized the production of 787 Dreamliner in approximately five per month, with plans to increase that to seven planes at the end of this year. The company’s commercial plane orders are valued at $ 460 billion.

The company’s efforts to recover from the crisis last year and other interruptions could be hindered by Mr. Trump’s commercial policies, which include a 10 percent tariff on almost all imports and levies equally higher in China’s goods, whose airlines buy many US planes.

Chinese clients have stopped receiving reaction deliveries at high rates, Ortberg said in the call. Fifty aircraft had been planned worth more than $ 1 billion for delivery to Chinese clients this year. Boeing can redirect those airplanes if delivery freezing remains.

A long -term loss of that business would be a substantial setback for Boeing. China is home to approximately one in seven passenger planes in use today, according to Cirium, an aviation data firm. The country commanded a similar proportion of Boeing’s deliveries during the last decade, thought it was slowed in recent years. Boeing said last summer that he expected China to need some 8,800 new planes in the next two decades.

While China is pumping money to a manufacturer of its own harvest aircraft, OCC, the country still depends largely on Western companies for aerospace and experience. It will probably also spend year before Comac can make airplanes in substantial numbers, experts say.

On Tuesday, Trump said the 145 percent rate on imports of Chinese products would “substantially”. China has retaliation imposing 125 percent tariffs on US imports.

RTX, who manufactures engines and plane parts, said Tuesday that tariffs would cost him around $ 850 million this year. GE Aerospace, another engines manufacturer, said he waited $ 500 million in tariff costs this year.

Boeing has not provided an estimate of tariff costs, but Mr. Ortberg described the direct effects on “irrelevant.” Much of the company’s supply chain is located in the United States, and Boeing has large parts inventories.

But the company could be the objective of reprisals to commercial policies, and its suppliers could suffer. Boeing is paying 10 percent tariffs in the components for wide body planes imported from Japan and Italy, but the company expects to recover those costs when airplanes are sold, Ortberg said.

“I do not think a day when we are not committed to some in the administration,” said federal officials are reception of the company’s groups.

Mr. Ortberg has also proposed to change the Boeing culture, which has blamed the promotion shortcuts that have led to the recently of the company’s problems. Last week, the company published the results of a survey that found that 67 percent of its employees said they were proud to work in the company, below 91 percent in 2013.