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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.
Lindsay Wasson | Reuters
Boeing said Thursday that it likely lost about $4 billion in the fourth quarter, adding to problems at the maker that started 2024. with mid-air 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. The company said it expects revenue to be $15.2 billion, short of analysts’ expectations, according to LSEG estimates. Boeing said it likely burned through $3.5 billion in cash during the quarter. The company raised more than $20 billion in the quarter to boost liquidity during the crises.
Boeing has not 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 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 conducting a successful capital raise to improve our balance sheet,” the CEO said of Boeing Kelly Ortberg in a release for news.
Boeing struggles to regain ground after a the door stopper exploded in the air in January 2024, causing a a new safety crisis in the company, which was trying to overcome the consequences of two fatal accidents in 2018 and 2019.
The near-catastrophic incident led to new federal controls and a delay in the delivery of new aircraft. Almost two months the machinists are on strike 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 jet unit is likely to reach $4.8 billion, with a negative operating margin of nearly 44%.
Boeing’s problems also extend to its defense unit, where it expects to record a pre-tax charge of $1.7 billion for the KC-46A tanker and the long-delayed 747s that will service the new Air Force One aircraft, as well as its space programs.
