Boeing lost $3.46 per share in the fourth quarter – equating to a total loss of about $4 billion based on its number of outstanding shares – amid a painful machinists’ strike that forced a production stoppage.
The company on 23 January disclosed preliminary 2024 preliminary financial results, saying its fourth-quarter loss reflects charges of nearly $3 billion against its commercial and defence aircraft programmes.
It still expects to deliver the first 777-9 in 2026.
That news comes several days after Boeing resumed 777-9 flights after having grounded the four-aircraft flight-test fleet in August last year due to fractured structural engine components.
Boeing is scheduled to disclose its finalised fourth-quarter and full-year 2024 financial results on 28 January.
Its preliminary disclosure says fourth-quarter revenue came in at $15.2 billion, which would be down 31% year on year. It burned $3.5 billion in cash last quarter.
“Although we face near-term challenges, we took important steps to stabilise our business during the quarter,” says Boeing chief executive Kelly Ortberg.
Those steps include reaching an agreement with the International Association of Machinists and Aerospace Workers (IAM), ending a 53-day strike in early November. Boeing also raised fresh investment last quarter, ending the year with $26.3 billion in cash and equivalents.
“We also restarted 737, 767 and 777/777X production, and our team remains focused on the hard work ahead to build a new future for Boeing,” Ortberg adds.
Boeing says its fourth-quarter loss reflects “impacts associated with the IAM work stoppage and agreement including lower deliveries”. It is not more specific.
The airframer will recognise a $1.1 billion fourth-quarter charge against its 767 and 777X programmes, specifying that the 777X faces “higher estimated labour costs associated with finalising” the new labour deal. Those costs will be “incurred over the next several years”.
Boeing says its commercial aviation division brought in $4.8 billion in fourth-quarter revenue, which would be less than half the $10.5 billion the division generated in the fourth quarter of 2023.
The Boeing Defense, Space & Security business will take a $1.7 billion charge in the fourth quarter against the 767-based KC-46A military tanker, T-7A trainer, 747-based VC-25B presidential aircraft and MQ-25 refuelling drone programmes, Boeing says.
