Boeing Reports US$17 billion Revenue in 2Q2021By Sofía Hanna | Tue, 08/10/2021 - 11:15
Boeing’s 2Q2021 report shows its continued progress in the international return to service of the 737 Max and an increase in revenues compared to the same period last year. The aerospace giant also published its first integrated Sustainability Report as part of its ongoing focus on global sustainability.
Boeing Company’s official 2Q2021 report shows US$ 17 billion revenue, a 44 percent increase compared to 2Q2020 and a 12 percent increase compared to the previous year’s first half. These improvements were driven by more commercial deliveries and higher service volume. “While our commercial market environment is improving, we are closely monitoring COVID-19 case rates, vaccine distribution and global trade as key indicators for our industry’s stability. As we continue to position for a robust recovery, we remain committed to safety and quality while investing in our people, products and technology. I am proud of our team’s resilience and commitment as we work to rebuild trust, improve our performance and deliver for our commercial, defense, space and services customers,” said David Calhoun, President and CEO of Boeing.
Operating cash flow improved to US$0.5 billion in the quarter, driven by higher commercial deliveries, higher-order receipts and lower expenditures. Cash and investments in marketable securities decreased to US$21.9 billion at the beginning of the quarter due to the operating cash outflows. Boeing’s Segment Results indicate that commercial airplane revenues increased to US$ 6.0 billion, primarily because of higher commercial airplane deliveries.
The US Federal Aviation Administration’s (FAA) approval to return the 737 Max was also positive for this quarter’s results, allowing the company to deliver over 130 737 Max aircraft. Airlines have also returned over 190 previously grounded airplanes to service.
The verification methodology for the 787 is still undergoing, following detailed discussions with the FAA. “Boeing is reprioritizing production resources for a few weeks to support the inspection and rework. Boeing expects to deliver fewer than half of the 787s currently in inventory this year.” In the Defense, Space & Security segment, revenue increased to US$ 6.9 billion, a 4 percent increase compared to 2Q2020, driven by the KC-46A Tanker and P-8A Poseidon. Finally, the Global Services revenue increased to US$4.1 billion, leaving Boeing with a 13.1 percent increase in its operating margin primarily driven by higher commercial services volume. Operating margin was also favorably impacted by lower asset impairments, lower severance costs and a mix of products and services, reports the company.