Boeing reports a loss

victoria@aviationnews-online.com
By victoria@aviationnews-online.com January 29, 2020 16:21

Boeing reports a loss

As expected Boeing has reported a loss for the fourth quarter and full year 2019 having been severely impacted by the 737 MAX grounding. 

For the fourth quarter of 2019, Boeing’s reported revenue was down 37% over the same period in 2018 to $17.9 billion; Boeing’s GAAP loss per share was $1.79 and core (non-GAAP) loss per share was $2.33.

For the full year, Boeing revenues have dropped by 24% to $76.6 billion, with GAAP loss per share of $1.12 and core (non-GAAP) loss per share of $3.47.

Boeing recorded operating cash flow of ($2.2) billion and paid $1.2 billion of dividends.

The manufacturer has a total order backlog of $463 billion. Commercial Airplanes backlog includes over 5,400 airplanes valued at $377 billion. 

“We recognize we have a lot of work to do,” said Boeing President and Chief Executive Officer David Calhoun. “We are focused on returning the 737 MAX to service safely and restoring the long-standing trust that the Boeing brand represents with the flying public. We are committed to transparency and excellence in everything we do.  Safety will underwrite every decision, every action and every step we take as we move forward. Fortunately, the strength of our overall Boeing portfolio of businesses provides the financial liquidity to follow a thorough and disciplined recovery process.”

Operating cash flow was ($2.2) billion in the quarter, primarily reflecting the impact of the 737 MAX grounding as well as timing of receipts and expenditures.

Cash and investments in marketable securities totalled $10.0 billion, compared to $10.9 billion at the beginning of the quarter. Debt was $27.3 billion, up from $24.7 billion at the beginning of the quarter primarily due to increased commercial paper borrowings.

Total company backlog at quarter-end was $463 billion and included net orders for the quarter of $13 billion.

In the fourth quarter, Boeing delivered 79 aircraft, compared to 238 in 2018. For the full year 2019, Boeing has delivered 380 airplanes compared to 806 in 2018. 

Commercial Airplanes fourth-quarter revenue was $7.5 billion and fourth-quarter operating margin decreased to (38.1) percent reflecting lower 737 deliveries and an additional pre-tax charge of $2.6 billion related to estimated potential concessions and other considerations to customers related to the 737 MAX grounding. 

The estimated costs to produce 737 aircraft increased by $2.6 billion during the quarter, primarily to reflect updated production and delivery assumptions. In addition, the suspension of 737 MAX production and a gradual resumption of production at low production rates will result in approximately $4 billion of abnormal production costs that will be expensed as incurred, primarily in 2020.

Boeing Global Services fourth-quarter revenue was $4.6 billion, primarily driven by lower commercial services volume. Fourth-quarter operating margin decreased to 14.7 percent primarily due to a charge related to the retirement of the Aviall brand and mix of products and services, partially offset by a gain on divestiture.

At quarter-end, Boeing Capital’s net portfolio balance was $2.3 billion. 

victoria@aviationnews-online.com
By victoria@aviationnews-online.com January 29, 2020 16:21