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Aerial view of the engines and fuselage of an unpainted Boeing 737 MAX parked in storage at King County International Airport Boeing Field in Seattle, Washington.
Lindsay Wasson | Reuters
Boeing said Thursday that it likely lost about $4 billion in the fourth quarter, adding to the woes of the manufacturer, which began 2024 with air crash and ended with a workers’ strike and layoffs.
The company said it expects a loss of $5.46 per share in the fourth quarter. The company said it expects revenue to come in at $15.2 billion, less than analysts expected, according to LSEG estimates. Boeing said it likely burned through $3.5 billion in cash in the quarter. The company raised more than $20 billion in the quarter to boost liquidity during crises.
Boeing has not released annual earnings since 2018.
The company expects to take a $1.1 billion charge on its 777X and 767 programs because of the strike and the new contract.
“Although we faced challenges in the near term, we took important steps to stabilize our business during the quarter, including reaching an agreement with our teammates represented by IAM and conducting a successful capital increase for improving our balance sheet,” said Boeing CEO Kelly Ortberg. news release.
Boeing is struggling to regain its footing after a the door stopper flew off in the air in January 2024, which caused a a new security crisis in a company that was trying to eliminate the consequences of two fatal accidents in 2018 and 2019.
The near-catastrophic crash prompted new federal controls and a slowdown in the supply of new planes. Almost two months machinists are on strike which began in September, halted most commercial aircraft production. Workers, mostly in the Puget Sound area, won a a new contract in November.
Profits from the all-important commercial aircraft division are likely to be $4.8 billion, with a negative operating margin of nearly 44%.
Boeing’s problems also extend to its defense division, for which it expects to record $1.7 billion in pretax spending on the KC-46A tanker and long-haul 747s to be serviced as the new Air Force One, as well as its space programs.
