Wednesday 12 Feb 2025
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(Jan 24): Boeing Co reported fourth-quarter revenue that missed analyst estimates after a bruising strike idled most of its commercial aircraft production and limited jet deliveries.

Citing preliminary financial results, Boeing said sales were US$15.2 billion (RM67.5 billion), less than the US$16.76 billion expected by Wall Street. The loss per share was US$5.46 under generally accepted accounting principles, Boeing said in a statement late Thursday. The company is due to report its full results for the final quarter of the year on Tuesday.

Boeing’s commercial airplanes unit will book US$1.1 billion in accounting charges on its 767 and the delayed 777X widebody jets, some of it related to the work stoppage. Another US$1.7 billion in charges were tied to five troubled defence programmes, including the KC-46 aerial refuelling tanker and the next Air Force One planes, the company said.

The results underscore the drawn-out recovery that Boeing chief executive officer Kelly Ortberg faces as he works to settle the company’s factories and supply chain into a steady operating tempo. Boeing’s commercial aircraft plants on the West Coast were disrupted for much of the quarter by 33,000 hourly workers who walked out to demand higher pay and better benefits.

Although the strike ended in early November with a four-year contract boosting wages by 38%, Boeing didn’t resume production of planes including the cash-cow 737 Max until December. Deliveries of new jets also slowed to a crawl.

The company’s commercial jet division recorded sales of US$4.8 billion and an operating margin of negative 44% as the strike and job cuts weighed on results. Boeing’s defence, space and security division booked sales of US$5.4 billion and a negative 42% operating margin.

Ortberg shored up cash during the quarter by raising as much as US$24 billion, ensuring Boeing has more time to turn around its operations. The company ended the year with US$26.3 billion in cash and marketable securities.

Boeing’s shares fell 1.8% in after-hours trading as of 5:38pm in New York. The stock lost about a third of its value last year.

Uploaded by Magessan Varatharaja

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