Boeing reports $663 million loss in 4Q despite higher revenue

It was another disappointing quarter for the aerospace giant, which has yet to recover from deadly crashes involving two of its 737 Max jets.

ARLINGTON, Va. — Boeing on Wednesday said it lost $663 million in the fourth quarter as higher production costs and supply chain problems offset increased revenue.

It was another disappointing quarter for the aerospace giant, which has yet to recover from deadly crashes involving two of its 737 Max jets and a pandemic that has reduced the need for airlines to buy new planes until recently.

The stock fell more than 2% in premarket trading.

The loss amounted to 1.06 USD per share. Excluding pension adjustments, the “core” loss was $1.75 per share. Revenue rose 35% from a year earlier, to $19.98 billion.

Analysts had expected the company to earn 20 cents per share on revenue of $20.32 billion, according to a FactSet survey.

However, this loss is much smaller than the $4.16 billion loss Boeing suffered in the fourth quarter of 2021, when it had to write a large write-off for its aircraft business. For a change, there were no new fees or major write-offs in the most recent quarter.

Cash flow, a measure that excludes many forms of non-cash spending, hit $3 billion, allowing Boeing to report positive full-year cash flow for the first time since 2018.

Boeing says it is stabilizing production of new 737s at 31 per month and plans to increase that rate to about 50 per month by 2025 or 2026, while also ramping up production of the planes. 787.

In a note to employees, CEO David Calhoun said the company is “making significant strides” to improve performance. He expressed confidence “despite the hurdles in front of us.”

Boeing, based in Arlington, Virginia, has seen an increase in deliveries since regulators approved the return of the 737 Max in late 2021 and after the company convinced regulators to reasoned that they had fixed production problems on another aircraft, the larger 787 Dreamliner. Deliveries are an important source of cash for the company.

Sales also picked up as airlines believe air travel demand is recovering from the worst of the pandemic.

Boeing’s defense and space businesses returned to tight margins in the fourth quarter after losing $2.85 billion the previous quarter due to hefty fees related to some programs. including the completion of two new Air Force One presidential jets.

Jeff Windau, an analyst at Edward Jones, said in a recent note that airline jet deliveries will continue to increase and that recently won defense contracts will also bring in additional revenue. collect. However, he said that risks include continued concerns about Max’s safety and trade tensions that could affect international orders.

https://www.king5.com/article/money/business/boeing-663-million-4q-revenue/281-1ae90a11-9242-43b7-a806-0a0f4aa72565 Boeing reports $663 million loss in 4Q despite higher revenue

Edmund DeMarche

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