Boeing expects Q3 revenue of $17.8bn
October 14, 2024
Ahead of its official third quarter 2024 earnings release scheduled for next week, Boeing has recognized the “impacts to its financial results” across several of its segments (exacerbated by the ongoing machinists’ strike action) as it expects to report a third quarter revenue of $17.8 billion.
This total is only slightly up on last quarter’s total revenue of $16.9 billion, with previous Boeing CEO Dave Calhoun stating at the time that “despite a challenging quarter, [Boeing is] making substantial progress… positioning [the] company for the future,” with the American manufacturer “making important progress in [its] recovery”.
However, noting that with the company “facing near-term challenges,” Boeing president and CEO Kelly Ortberg explained that “decisive actions, along with key structural changes,” are “necessary to remain competitive over the long term” – including proposed redundancies across around 10% of the workforce.
Boeing Commercial Airplanes expects to recognise pre-tax earnings charges of $3 billion on the 777X and 767 programmes, with delivery of the first 777-9 in 2026 and the 777-8 freighter in 2028; resulting in a pre-tax earnings charge of $2.6 billion. The conclusion of production of the 767 freighter (a programme also bringing a $0.4 billion pre-tax charge) “also reflects impacts from the IAM work stoppage,” explained Boeing, which expects to report an overall third quarter revenue of $7.4 billion across its commercial business sector.
Commercial Airplanes also expects to report an operating margin of 54% for the quarter, up on Q2’s 11.9% (deemed at the time to “primarily reflect lower deliveries and higher period costs), although ongoing strike action continues to cast uncertainty over Boeing’s ongoing output.
Ahead of next Wednesday’s figures, Ortberg concluded that along with Boeing’s “important strategic decisions,” it is “also focusing on areas that are critical to [its] future and will ensure [it has] the balance sheet necessary to invest, support [its] people and deliver for [its] customers”.
