23

Boeing revealed substantial losses and weaker-than-expected sales in 2024, driven by production disruptions and financial challenges.

$3 Billion in Fourth-Quarter Charges

Boeing reported nearly $3 billion (€2.85 billion) in charges for the fourth quarter of 2024. These stemmed from a prolonged labor strike, workforce reductions, and issues with government contracts. The strike, which lasted over seven weeks, disrupted production of the 737 Max, 777, and 767 models in Washington state. It ended when Boeing agreed to higher wages and improved worker benefits.

The company also recorded $1.1 billion (€1.05 billion) in charges related to the 777 and 767 programs. Additionally, $1.7 billion (€1.62 billion) was allocated to costs associated with government projects, including military refueling tankers and new Air Force One aircraft.

Significant Losses and Strategic Adjustments

Boeing announced an expected loss of $5.46 (€5.19) per share for the quarter, exceeding Wall Street’s anticipated $1.80 per share loss. Revenue totaled $15.2 billion (€14.46 billion), falling short of the projected $16.6 billion (€15.8 billion).

CEO Kelly Ortberg acknowledged the challenges but highlighted progress made to stabilize the business. These efforts included a capital raise to strengthen the balance sheet and restarting production of the 737, 767, and 777/777X models. Ortberg emphasized the team’s focus on building Boeing’s future despite ongoing difficulties.

Boeing also confirmed plans to cut its workforce by 10% to streamline operations and reduce costs.

Potential Sale of Jeppesen Unit

To ease its $58 billion debt load, Boeing may sell its Jeppesen navigation unit for $6-8 billion, according to Bloomberg. Potential buyers include aviation suppliers RTX, Honeywell, and GE Aerospace. Initial bids are due next week, attracting significant interest from private equity firms.

Despite releasing its preliminary results, Boeing’s stock initially dropped but later rebounded, climbing over 2% by Friday morning. The company plans to disclose detailed fourth-quarter results on 28 January, providing further insight into its financial performance and recovery plans.