An aerial view of the engines and fuselage of an unpainted Boeing 737 MAX airplane parked in storage at King County International Airport-Boeing Field in Seattle, Washington.
Lindsey Wasson | Reuters
Boeing said Thursday that it likely lost about $4 billion in the fourth quarter, adding to troubles at the manufacturer, which began 2024 with a midair accident and ended it with a crippling labor strike and layoffs.
The company said it expects to post a loss of $5.46 per share for the fourth quarter. It said it expects its revenue to be $15.2 billion, less than analysts’ expectations, according to LSEG estimates. Boeing said it likely burned through $3.5 billion in cash in the quarter. Boeing raised more than $20 billion in the quarter to boost liquidity during its crises.
Boeing hasn’t posted an annual profit since 2018.
The company expects to take a $1.1 billion charge on its 777X and 767 programs because of the strike and new contract.
“Although we face near-term challenges, we took important steps to stabilize our business during the quarter including reaching an agreement with our IAM-represented teammates and conducting a successful capital raise to improve our balance sheet,” Boeing’s CEO Kelly Ortberg said in a news release.
Boeing has struggled to regain its footing after a door-plug blew out midair in January 2024, sparking a new safety crisis at the company that was trying to put behind it the fallout from two fatal crashes in 2018 and 2019.
The near-catastrophic accident brought new federal scrutiny and a slowdown of deliveries of new planes. A nearly two-month machinist strike that started in September shut down most of its commercial aircraft production. The workers, mostly in the Puget Sound area, won a new contract in November.
The all-important commercial airplane unit revenue will likely come in at $4.8 billion, with a negative operating margin of nearly 44%.
Boeing’s problems also extend to its defense unit, for which it expects to record pretax charges of $1.7 billion on the KC-46A tanker, and the long-delayed 747s that will service as the new Air Force One aircraft, as well as its space programs.
Boeing Expects $4 Billion Loss for Fourth Quarter After Chaotic 2024
Boeing, the aerospace giant, is bracing for a $4 billion loss in the fourth quarter of 2024 following a tumultuous year marked by supply chain disruptions, production delays, and increased competition in the aviation industry.
The company faced a series of setbacks throughout the year, including the grounding of its 737 MAX fleet due to safety concerns, as well as ongoing challenges with its 787 Dreamliner program. These issues have significantly impacted Boeing’s financial performance and eroded investor confidence.
Despite these challenges, Boeing remains optimistic about its long-term prospects and is focusing on streamlining its operations, improving efficiency, and enhancing its product offerings to regain its competitive edge in the market.
Analysts are closely monitoring Boeing’s financial results and strategic initiatives as the company works towards recovering from the setbacks of 2024 and positioning itself for future success in the aerospace industry.
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Boeing, fourth quarter, financial loss, chaotic 2024, aerospace industry, revenue decline, company performance, economic impact, market analysis, aviation sector
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