An American Airlines Boeing 787-9 Dreamliner approaches for a touchdown on the Miami International Airport on December 10, 2021 in Miami, Florida.
Joe Raedle | Getty Images
Boeing took a $3.5 billion pre-tax charge on its 787 Dreamliners after manufacturing points prevented the corporate from delivering the planes to airways for many of the final 15 months.
The firm, nonetheless, stated Wednesday that it generated positive cash flow within the fourth quarter, hitting that key milestone sooner than Boeing executives forecast. It was pushed by a leap in deliveries final yr of its 737 Max after regulators lifted bans on the jets after two deadly crashes.
Here’s how the corporate carried out in contrast with analysts’ estimates complied by Refinitiv:
- Adjusted outcomes: A lack of $7.69 a share vs. an anticipated lack of 42 cents a share.
- Revenue: $14.79 billion vs. $16.59 billion, anticipated.
Boeing misplaced $4.29 billion final yr, its third annual loss in a row because the pandemic and manufacturing points continued to harm its backside line. It’s an enchancment from 2020 when the corporate misplaced $11.94 billion.
For the fourth-quarter, Boeing reported a web lack of $4.16 billion, lower than half of the $8.44 billion it misplaced a yr earlier. Sales fell 3% from a yr in the past to $14.79 billion, decrease than the $16.59 billion analysts anticipated.
“2021 was a key rebuilding yr for us, and collectively, we overcame important hurdles,” CEO David Calhoun stated in a be aware to staff on Wednesday. “While we now have extra work to do, I’m assured that we’re effectively positioned to speed up our progress in 2022 and past.”
Boeing’s plane gross sales and deliveries surged last year but handovers of latest planes to airways nonetheless trailed rival Airbus.
Boeing has been hamstrung by the pause in deliveries of its 787 Dreamliners for a lot of the previous yr as a result of a sequence of producing flaws, difficult prospects like American Airlines and Hawaiian Airlines.
American Airlines final month stated it will trim its worldwide schedule due to 787 supply delays. The service’s CFO Derek Kerr stated on an earnings name final week that Boeing was already paying penalties for the delays and “will compensate us for the losses” if there are further delays.
The plane producer has slashed Dreamliner manufacturing, which has pushed up prices. The total debacle is anticipated to value it $5.5 billion, which incorporates $2 billion in further prices by means of 2023.
Still, Calhoun has stated he expects the worst is behind the aviation sector after the pandemic devastated journey demand. Airline executives earlier in January stated they anticipate worldwide journey demand to rebound this spring and summer season after journey restrictions have been lifted in latest months.
Boeing and Airbus provider General Electric on Tuesday forecast a 20% enhance in income this yr in its key aviation unit, which produces and repairs plane engines.
The firm will maintain a ten:30 a.m. ET name with analysts, when executives are more likely to be quizzed about its manufacturing tempo, provide chain points and potential impacts on the corporate from rising tensions over Ukraine.