Boeing closed 2024 with significant financial losses and lower-than-expected sales, as preliminary figures reveal.
Steep Fourth-Quarter Losses
Boeing announced a fourth-quarter loss of $5.46 (€5.19) per share, exceeding Wall Street’s expectation of $1.80 per share. The company cited nearly $3 billion (€2.85bn) in charges from a prolonged labor strike, job reductions, and government program issues. Revenue for the quarter reached $15.2bn (€14.46bn), falling short of analysts’ estimate of $16.6bn (€15.8bn).
The machinists’ strike at Boeing’s factories in Renton and Everett, Washington, severely disrupted production of the 737 Max, 777, and 767 models. The strike, lasting over seven weeks, ended after Boeing agreed to increase worker pay and benefits.
Additional Charges and Future Plans
Boeing reported $1.1bn (€1.05bn) in charges tied to the 777 and 767 programs and $1.7bn (€1.62bn) for government contracts. These include projects like the military refueling tanker and the replacement aircraft for Air Force One.
CEO Kelly Ortberg acknowledged the challenges but highlighted positive steps, such as resolving labor disputes and raising capital to stabilize finances. Production of the 737, 767, and 777/777X models has resumed. Ortberg emphasized that Boeing remains committed to building a stronger future despite near-term difficulties.
Potential Asset Sale and Market Reaction
To manage its $58bn debt, Boeing may sell its Jeppesen navigation unit for $6-8bn, Bloomberg reported. Aviation suppliers like RTX, Honeywell, and GE Aerospace are reportedly interested, with first-round bids due next week.
Following the preliminary results, Boeing’s shares initially dropped but climbed over 2% on Friday morning. The company plans to release its full fourth-quarter results, including detailed figures, on 28 January.
