Boeing posted a $663 million loss for the fourth quarter as supply chain issues weighed on results despite a rebound in aircraft sales and deliveries that drove up revenue.
Airlines and aircraft manufacturers have benefited from a pointy recovery in air travel, one of the affected industries from the Covid pandemic. But Boeing’s leaders have been hesitant to ramp up aircraft production until the availability chain has stabilized.
The corporate is producing 31 of its 737 jets a month and plans to extend that to about 50 monthly in 2025 or 2026. It said it might raise what has been low production rate of the 787 Dreamliners to 5 every month toward the tip of the yr and to 10 monthly in 2025 or 2026. Deliveries of those wide-body planes had been paused for around two years until this summer as a result of production flaws.
A Boeing 747-8F operated by AirBridgeCargo takes off from Leipzig/Halle Airport.
Jan Woitas | Picture Alliance | Getty Images
For the complete yr, Boeing had a lack of $5 billion despite a 7% increase in revenue to $66.6 billion.
Here’s how the corporate performed within the fourth quarter compared with analysts’ estimates complied by Refinitiv:
- Adjusted loss per share: $1.75 vs. expected earnings per share of 26 cents.
- Revenue: $19.98 billion vs. $20.38 billion expected.
Boeing generated $3.1 billion in money flow within the fourth quarter, higher than analyst forecasts, and $2.3 billion for the yr, essentially the most since 2018, before the second of two fatal 737 Max crashes that sparked a yearslong crisis for the corporate.
Its business aircraft unit generated $9.2 billion in sales within the fourth quarter, up 94% from a yr earlier as deliveries jumped, nevertheless it still produced a loss as a result of abnormal costs and other expenses comparable to research and development, the corporate said.
Boeing reiterated its expectation to generate between $3 billion and $5 billion in free money flow this yr.
“We’re pleased with how we closed out 2022, and despite the hurdles in front of us, we’re confident in our path ahead,” CEO Dave Calhoun said Wednesday in a memo to employees. “We now have a strong pipeline of development programs, we’re innovating for the long run and we’re increasing investments to organize for our next generation of products.”