A Boeing 747-8F operated by AirBridgeCargo takes off from Leipzig/Halle Airport.
Jan Woita | Picture Alliance | Getty Images
Boeing posted a fourth-quarter loss of $663 million as supply chain issues weighed on results, despite a rebound in aircraft sales and deliveries that boosted revenue.
Airlines and aircraft manufacturers have benefited from a strong recovery in air travel, one of the industries hardest hit by the Covid pandemic. But Boeing executives have been reluctant to ramp up aircraft production until the supply chain stabilizes.
The company produces 31 of its 737 jets per month and plans to increase that number to about 50 per month in 2025 or 2026. It said it will increase the low production rate of the 787 Dreamliners to five a month later this year and 10 a month in 2025 or 2026. Deliveries of those widebody aircraft have been suspended for around two years until this summer due to production errors.
For the full year, Boeing had a $5 billion loss despite a 7% increase in revenue to $66.6 billion.
Here’s how the company performed in the fourth quarter compared to analyst estimates compiled by Refinitiv:
- Adjusted loss per share: $1.75 vs. expected earnings per share of 26 cents.
- Revenue: $19.98 trillion vs $20.38 trillion expected.
Boeing generated $3.1 billion in cash flow in the fourth quarter, more than analysts had forecast, and $2.3 billion for the year, the highest since 2018, before the second of two deadly 737 Max crashes triggered a long-term crisis for the company.
The airliner division generated revenue of $9.2 billion in the fourth quarter, up 94% year over year as deliveries skyrocketed but still posted a loss due to abnormal costs and other spending like research and development , the company said.
Boeing reiterated its expectation of generating between $3 billion and $5 billion in free cash flow this year.
“We’re proud of how we ended 2022 and despite the hurdles ahead, we’re confident in our journey forward,” CEO Dave Calhoun said in a memo to employees on Wednesday. “We have a solid pipeline of development programs, we are innovating for the future, and we are increasing our investments to prepare for our next generation of products.”