Boeing posts a $4.2b quarterly loss as delays persist in 787 production
Boeing reported a $3.5b charge in the final three months of last year from prolonged delays in making and delivering its 787 Dreamliner jet, driving the company to a bruising $4.2b loss for the quarter. The Dreamliner costs were caused in part by a realization that the fixes Boeing needed to make to win FAA approval for the twin-aisle plane would take longer than expected, the company said Wednesday. Boeing did not provide an update on when it would restart deliveries of the plane and said it now expected that the delay of more than a year would generate a total of $2b in “abnormal costs” over the next two years, bringing the total price of the delays to $5.5b. “On the 787 program, we’re progressing through a comprehensive effort to ensure every airplane in our production system conforms to our exacting specifications,” David Calhoun, Boeing’s CE, said announcing the financial results, including a $4.3b loss for the year, the third annual loss in a row. “While this continues to impact our near-term results, it is the right approach to building stability and predictability as demand returns for the long term,” he said. “Across the enterprise, we remain focused on safety and quality as we deliver for our customers and invest in our people and in our sustainable future.” The company reported $14.8b in revenue for Q4, falling short of analysts’ estimates. But there were bright spots: Boeing continued to celebrate the return of the 737 Max and reported operating cash flow of $716m, its first positive showing since Q1 2019. Boeing tallied 356 new Max orders in 2021, helping to deliver the company’s best year for commercial airplane sales since 2018, beating its rival Airbus. Boeing said Wednesday that it was producing about 27 Max planes per month, up from 19 in October, and was on track to reach a target monthly output of 31 early this year. But the success of the Max’s return was offset by the Dreamliner delays, which date back more than a year. In September 2020, Boeing said it expected deliveries of the jet, typically used for long-distance international trips, to be delayed as it worked with the FAA to address a handful of quality concerns.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2022-01-27/general/boeing-posts-a-4-2b-quarterly-loss-as-delays-persist-in-787-production
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Boeing posts a $4.2b quarterly loss as delays persist in 787 production
Boeing reported a $3.5b charge in the final three months of last year from prolonged delays in making and delivering its 787 Dreamliner jet, driving the company to a bruising $4.2b loss for the quarter. The Dreamliner costs were caused in part by a realization that the fixes Boeing needed to make to win FAA approval for the twin-aisle plane would take longer than expected, the company said Wednesday. Boeing did not provide an update on when it would restart deliveries of the plane and said it now expected that the delay of more than a year would generate a total of $2b in “abnormal costs” over the next two years, bringing the total price of the delays to $5.5b. “On the 787 program, we’re progressing through a comprehensive effort to ensure every airplane in our production system conforms to our exacting specifications,” David Calhoun, Boeing’s CE, said announcing the financial results, including a $4.3b loss for the year, the third annual loss in a row. “While this continues to impact our near-term results, it is the right approach to building stability and predictability as demand returns for the long term,” he said. “Across the enterprise, we remain focused on safety and quality as we deliver for our customers and invest in our people and in our sustainable future.” The company reported $14.8b in revenue for Q4, falling short of analysts’ estimates. But there were bright spots: Boeing continued to celebrate the return of the 737 Max and reported operating cash flow of $716m, its first positive showing since Q1 2019. Boeing tallied 356 new Max orders in 2021, helping to deliver the company’s best year for commercial airplane sales since 2018, beating its rival Airbus. Boeing said Wednesday that it was producing about 27 Max planes per month, up from 19 in October, and was on track to reach a target monthly output of 31 early this year. But the success of the Max’s return was offset by the Dreamliner delays, which date back more than a year. In September 2020, Boeing said it expected deliveries of the jet, typically used for long-distance international trips, to be delayed as it worked with the FAA to address a handful of quality concerns.<br/>
