Boeing Q42023 loss at $283mn, full year loss at $773mn

The Boeing Company reported a 10 percent increase in fourth quarter revenue at $22billion, and a net loss of $283 million. "Boeing reported operating cash flow of $3.4 billion and free cash flow of $3 billion. Results improved on higher commercial volume and performance," says an official release.

Dave Calhoun, President and Chief Executive Officer, Boeing says: "While we report our financial results, our full focus is on taking comprehensive actions to strengthen quality at Boeing, including listening to input from our 737 employees that do this work every day. As we move forward, we will support our customers, work transparently with our regulator and ensure we complete all actions to earn the confidence of our stakeholders."

For the full year 2023, Boeing reported a 17 percent increase in revenue at $77.8 billion, and a net loss of $773 million, down from $3.5 billion in 2022.

Commercial airplanes fourth quarter revenue increased to $10.5 billion, driven by higher deliveries and favourable mix, the release added. "Operating margin of 0.4 percent also reflects improved performance and lower abnormal costs.

"The company continues to cooperate transparently with the FAA following the Alaska Airlines Flight 1282 accident involving a 737-9. Commercial airplanes is taking immediate actions to strengthen quality on the 737 programme, including requiring additional inspections within its factory and at key suppliers, supporting expanded oversight from airline customers and pausing 737 production for one day to refocus its employees on quality. The company has also appointed an outside expert to lead an in-depth independent assessment of commercial airplanes' quality management system with recommendations provided directly to Calhoun and the aerospace safety committee of Boeing's board of directors.

"The 737 programme continues to deliver airplanes and its production rate is now at 38 per month. The 787 programme production rate is now at five per month.

"During the quarter, commercial airplanes booked 611 net orders, including 411 737, 98 777X, and 83 787 airplanes, began certification flight testing on the 737-10, and resumed production on the 777X programme. Commercial airplanes delivered 157 airplanes during the quarter and the backlog included over 5,600 airplanes valued at $441 billion."

Defence, space & security fourth quarter revenue was $6.7 billion. Operating margin was (1.5) percent, primarily driven by $139 million of losses on certain fixed-price development programmes. Results were also impacted by unfavourable performance and mix on other programmes, the release added.

Global services fourth quarter revenue of $4.8 billion and operating margin of 17.4 percent reflect higher commercial volume and mix.

"During the quarter, global services opened its first parts distribution centre in India and received a follow-on contract option to provide sustainment for the C-17 Globemaster III."