Boeing warns of bigger-than-expected $4b quarterly loss; shares drop

Boeing warned on Thursday that it expected a fourth-quarter loss of about $4b to close a year marred by a production quality crisis, stricter regulatory scrutiny, supply chain delays and a crippling strike by U.S. West Coast factory workers. The loss would be nearly triple the size expected by Wall Street. Boeing, which will release its results next week, attributed it to charges at its defense and commercial units, lower jetliner deliveries and the strike's effects. The company forecast a quarterly loss of $5.46 per share, which equates to about $4b, sharply steeper than analysts' average expectation of a $1.84 per share loss, according to LSEG data. Boeing shares fell 3.5% in after-hours trading as the company projected quarterly revenue of $15.2b, below expectations of $16.27b. After banking record-high profits in the 2010s, Boeing has bled billions of dollars since 2019 after two fatal crashes of its best-selling 737 MAX jet revealed production quality and safety concerns and that the U.S. planemaker had misled regulators during the plane's certification process. The COVID-19 pandemic further squeezed the company, and 2024 began with a mid-air panel blowout on a nearly new 737 MAX, sending Boeing into another crisis. Through the first nine months of 2024, Boeing racked up nearly $8b in losses, hammered by a strike by more than 33,000 workers that halted production of its 737 MAX, 777 and 767 planes and by an ailing defense and space division. Based on Thursday's quarterly results forecast, the company's annual loss for the year could rival 2020, when it lost nearly $12b, the most in its history.<br/>