Boeing expects $4 billion loss for fourth quarter after chaotic 2024

Boeing said Thursday that it likely lost about $4 billion in the fourth quarter, adding to the problems for the manufacturer, which began 2024 with a mid-air incident and it ended with a labor strike and layoffs.

The company said it expects to post a loss of $5.46 per share for the fourth quarter. It said it expects its revenue to be $15.2 billion, less than 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 bolster liquidity during its 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.

“Although we face near-term challenges, we took important steps to stabilize our business during the quarter, including reaching an agreement with our teammates represented by IAM and conducting a successful capital raise to improve our balance sheet said Kelly Ortberg, CEO of Boeing. news release.

Boeing struggled to regain its position after a the door jamb blew up in January 2024, sparkling a new security crisis to the company that was trying to put behind the fallout from two fatal crashes in 2018 and 2019.

The near-catastrophic accident brought new federal scrutiny and a slowdown in new plane deliveries. Almost two months machinists strike which began in September shutting down most of its commercial aircraft production. Workers, especially in the Puget Sound area, won a new contract in November.

Revenue from the all-important commercial aircraft unit is expected to be $4.8 billion, with a negative operating margin of nearly 44%.

Boeing’s problems also extend to its defense unit, for which it expects to record pretax charges of $1.7 billion on the KC-46A tanker, and the long-delayed 747s that will serve as the new Air Force One aircraft , and also their planes. programs spaces.