Boeing Predicts $4 Billion Quarterly Loss, Stock Plummets

Boeing announced on Thursday that it anticipates a fourth-quarter loss of approximately $4 billion, capping a difficult year marked by production quality problems, tighter regulatory oversight, supply chain hold-ups, and a significant strike by West Coast factory workers. The projected loss per share of $5.46 nearly triples analysts’ original forecasts. Horizon206 / Wikimedia

The aircraft manufacturer, which will disclose its final results next week, attributed the unexpected shortfall to charges at its defense and commercial units, fewer jet deliveries, and the impact of the strike. Boeing’s shares dropped 3.5% in after-hours trading as it also projected lower-than-expected quarterly revenue of $15.2 billion. Boeing, Richard Burch Eiber / Wikimedia

Boeing CEO Kelly Ortberg, who stepped into the role in August, acknowledged the company faces “near-term challenges” but emphasized it took major steps to stabilize operations during the final quarter. Among these were a labor deal reached in November, which ended a seven-week work stoppage and restarted production on key aircraft programs, and the successful raising of more than $20 billion in capital. Engin_Akyurt / Pixabay

Even so, Boeing is still dealing with the aftermath of two fatal crashes of its 737 MAX, which exposed safety shortcomings and eroded public trust. The COVID-19 pandemic compounded these troubles, with 2024 bringing a mid-flight panel failure on a nearly new 737 MAX. SounderBruce / Wikimedia

A protracted strike and a struggling defense unit contributed to nearly $8 billion in losses for the first nine months of last year. Further charges are anticipated for development programs, including the 777X, the KC-46 tanker, the T-7 trainer, and the Starliner spacecraft. Boeing’s annual loss may rival the $12 billion it lost in 2020, which was its biggest annual shortfall in history. NASA, Johnson Space Center / Wikimedia