Boeing (NYSE: BA) said its revenues for the second quarter tumbled 35% to $15.75 billion, hurt by the recent incidents relating to its Max 737. The top line was far below the analysts’ estimate of $18.55 billion.
Meanwhile, the company said it swung to a loss of $5.82 per share during the quarter, even as analysts were still expecting a profit. The bottom-line was hurt by a previously-announced charge of $4.9 billion related to the 737 Max airplane grounding and associated delivery delays.
During the quarter, the Chicago-based firm delivered only 90 commercial aircraft, compared to 194 a year ago.
Ever since last month’s deadly crash, airline carriers have been cutting orders for the aircraft that was touted as the most advanced model ever built by Boeing. Boeing continues to work with civil aviation authorities to ensure the 737 Max’s safe return to service.
Revenue from commercial airplanes fell 66% during the quarter. This segment, which accounted for 51% of Boeing’s total revenues at the end of the first quarter, shrunk to 30% at the end of Q2.
The aircraft manufacturer refrained from giving a financial forecast, citing “uncertainty of the timing and conditions surrounding return to service of the 737 MAX fleet.”
Separately, Boeing has been facing aggressive international competitors who are intent on increasing their market share, such as Airbus and others from Russia, China and Japan.
The commercial aircraft market is predominantly driven by long-term trends in airline passenger and cargo traffic, and market conditions have a significant impact on the demand for commercial aircraft.
Boeing shares were down 0.55% immediately following the announcement. The stock is currently down 15% from the 52-week high it achieved in March.