Boeing loses $6 billion in three months
October 23, 2024
Boeing has recorded a third quarter loss of $5.76 billion and an adjusted loss per share of almost $10, “primarily reflecting impacts of the IAM work stoppage and previously announced charges on commercial and defence programmes,” although new president and CEO Kelly Ortberg remains bullish that the US manufacturing giant can return “to its former legacy” given the right focus and culture.
During Q3 2024, Boeing reported an overall revenue of $17.8 billion, with a loss from operations of $5.761 billion up from Q3 2023’s $808 million. Its net loss also rose from $1.6 billion in the equivalent period last year to $6.1 billion this year, with a basic loss per share down from $2.70 to $9.91.
As expected, Boeing’s Commercial Airplanes business segment took a significant hit in the quarter. Although deliveries in Q3 2024 (116) were up on Q3 2023’s 105 units, with revenues of $7.4 billion only fractionally down from last year’s $7.8 billion, the impact of the ongoing IAM work stoppage has crippled Boeing’s ongoing output. “Commercial Airplanes third quarter revenue of $7.4 billion and operating margin of 54% reflect previously announced pre-tax charges of $3 billion on the 777X and 767 programmes as well as the IAM work stoppage and higher period expense,” clarified Boeing.
During the quarter, Commercial Airplanes took 49 net orders, with its backlog of over 5,400 units valued at $428 billion. Acknowledging that “the trust in our company has eroded” amidst “serious lapses in [the company’s] performance, Ortberg nevertheless reiterated his belief that Boeing has “a customer base that want us and needs us to succeed” – with upcoming “fundamental change” instrumental to building back a better Boeing.
Acknowledging that the potential ending of the ongoing IAM strike is “first and foremost on everybody’s mind today,” Ortberg added that Boeing has been “feverishly working to find a solution that works for the company and meets our employees’ needs” – after which the manufacturer will have the significant task of “restarting the factories and the supply chain,” something he described as “much harder to turn.. on than it is to turn it off”. Boeing hopes to increase 787 production from its current four units a month to five by year end.
Elsewhere, Defense, Space & Security reported a third quarter 2024 revenue of $5.5 billion, 1% up from Q3 2023’s but which still incurred a $2.3 billion loss (an increase from Q3 2023’s $924 million). Backlog stood at $62 million. Global Services, meanwhile, was the only business segment to increase its quarterly revenue year-on-year; reporting a 2% increase from last year’s $4.8 billion.
