An aerial view of the engines and fuselage of an unpainted Boeing 737 MAX aircraft parked at the King County International Airport-Boeing Field depot in Seattle, Washington.
Lindsey Wasson | Reuters
Boeing said Thursday that it likely lost about $4 billion in the fourth quarter, adding to the problems at the manufacturer, which began 2024 with an accident in the air and ended it with a paralyzing labor strike and layoffs.
The company said it expects a loss of $5.46 per share in the fourth quarter. He said he expected its revenue to come in at $15.2 billion, short of analysts’ expectations, according to LSEG estimates. Boeing said it likely spent $3.5 billion in cash during the quarter. The company raised more than $20 billion in the quarter to boost liquidity during the crisis.
Boeing has not made 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 the new contract.
“While 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 executing a successful capital raise to improve our balance sheet,” Boeing CEO Kelly Ortberg said in a news release. .
Boeing struggled to regain its footing after a the door stopper exploded in the air in January 2024, causing a a new security crisis in a company that was trying to leave behind the consequences of two fatal accidents in 2018 and 2019.
The near-catastrophic crash brought new federal scrutiny and a slowdown in new aircraft deliveries. Almost two months strike of machinists which began in September has shut down most commercial aircraft production. Workers, mostly in the Puget Sound area, won a new contract in November.
Revenue from the all-important commercial aircraft unit is likely to be $4.8 billion, with a negative operating margin of nearly 44%.
Boeing’s problems also extend to its defense unit, which expects to record pretax spending of $1.7 billion for the KC-46A tanker and the long-delayed 747 that will serve as the new Air Force One aircraft, as well as its space programs.
