An aerial view of the engines and fuselage of an unpainted Boeing 737 MAX airplane parked in a warehouse at King County International Airport-Boeing Field in Seattle, Washington.
Lindsey Wasson | Reuters
Boeing said on Thursday that it probably lost about $4 billion in the fourth quarter, deepening troubles for the manufacturer that started 2024 with accident in the air and ended it with a devastating workers' strike and layoffs.
The company said it expected a loss of $5.46 per share in the fourth quarter. According to estimates, LSEG expects its revenue to be $15.2 billion, which is less than analysts expected. Boeing said it likely burned through $3.5 billion in cash this quarter. The company raised more than $20 billion this quarter to boost liquidity during crises.
Boeing hasn't posted an annual profit since 2018.
The company expects to collect a $1.1 billion charge for the 777X and 767 programs due to the strike and new contract.
“While we face near-term challenges, we took important steps to stabilize our business this quarter, including reaching an agreement with our team members represented by IAM and executing a successful capital raise to improve our balance sheet,” Boeing CEO Kelly Ortberg said in an interview for press release.
Boeing is struggling to recover from: the door plug flew out of the air in January 2024, causing a new security crisis in a company that was trying to forget the consequences of two fatal accidents in 2018 and 2019.
The near-catastrophic accident brought new federal scrutiny and a slowdown in new plane deliveries. Almost two months train drivers' strike which began in September, shut down most commercial aircraft production. The workers, mostly from the Puget Sound area, won new contract in November.
Revenue from core commercial aircraft units is likely to be $4.8 billion, with a negative operating margin of nearly 44%.
Boeing's woes also extend to its defense unit, for which it expects to collect $1.7 billion in pre-tax charges for the KC-46A tanker, as well as the long-delayed 747s that will serve as the new Air Force One, and its space programs.