Boeing reports second-quarter revenue beat, boosts 737 production goals

Investing.com -- U.S. plane-making giant Boeing (NYSE:BA) reported second-quarter revenue that topped average analyst estimates, as it also outlined plans to increase production of its popular 737 MAX narrowbody jet.

Revenue during the three months to the end of June jumped by 18% to $19.75 billion, beating Bloomberg consensus expectations of $18.53B, driven by higher deliveries of its 787 model. Boeing's commercial airplanes segment in particular registered a 41% surge in revenues to $8.84B.

"With demand strong, we’re steadily increasing our production rates across key programs and growing investments in our people, products and technologies,” said president and chief executive officer Dave Calhoun in a statement.

Shares in the company rose in premarket U.S. trading Wednesday.

However, issues persisted in the company's defense business, where three of its large-scale fixed-price development programs booked losses worth around half a billion dollars. Labor instability and supply chain disruptions also led to revenues at the division falling slightly to $6.17B.

Calhoun added that challenges remain "within our own factories or outside our walls within the supply chain and logistics routes," referring to the collapse last month of a railway bridge used to transport its 737 fuselages.

Yet Boeing raised its production plans for the 737 MAX up to 38 per month from 31 by the end of the year, in a sign that the planes are in heavy demand as airlines race to address a post-pandemic surge in travel.