In the next 30 minutes, Boeing discusses it’s fourth quarter financial results via an earnings call, with the 737 MAX issues overshadowing this at present. Follow our live coverage.
AviationSource will be noting observations made in the manufacturer’s earnings call today, so be sure to keep up to date on this as they come in.
Without further ado, let’s get into it…
Boeing & The Issues With the 737 MAX…
Today’s fourth-quarter earnings will be an interesting indicator of how much money the Boeing 737 MAX issue with the door plugs have cost the American planemaker.
Earlier this month, Alaska Airlines flight AS1282 had to make an emergency landing in Portland following one of the inoperable doors separating from the airplane.
This resulted in the temporary groundings of the MAX 9 variant that had this setup on the aircraft, which included operators such as Alaska Airlines, United Airlines, Turkish Airlines & Copa Airlines.
The Federal Aviation Administration (FAA) also said that they would increase oversight into the production of the aircraft type, which involved the rejection of production expansion of the aircraft family until all safety obligations had been met.
As well as the 737 MAX, Boeing will also be providing updates around the whole of it’s commercial aircraft wing, where we will find out additional updates within this too.
When the results get released, you will see them on this article, as well as any further observations made by the American planemaker. Be sure to keep refreshing the article as live updates come in!
Financial Results Disclosed…
Before the earnings call today, Boeing released the fourth-quarter results, which are as follows:
| Table 1. Summary Financial Results | Fourth Quarter | Full Year | ||||||||||||||||||||||||||||||||||||
| (Dollars in Millions, except per share data) | 2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||||||||||||||||||||
| Revenues | $22,018 | $19,980 | 10 % | $77,794 | $66,608 | 17 % | ||||||||||||||||||||||||||||||||
| GAAP | ||||||||||||||||||||||||||||||||||||||
| Earnings/(loss) from operations | $283 | ($345) | NM | ($773) | ($3,519) | NM | ||||||||||||||||||||||||||||||||
| Operating margins | 1.3 | % | (1.7) | % | NM | (1.0) | % | (5.3) | % | NM | ||||||||||||||||||||||||||||
| Net loss | ($30) | ($663) | NM | ($2,242) | ($5,053) | NM | ||||||||||||||||||||||||||||||||
| Loss per share | ($0.04) | ($1.06) | NM | ($3.67) | ($8.30) | NM | ||||||||||||||||||||||||||||||||
| Operating cash flow | $3,381 | $3,457 | (2) % | $5,960 | $3,512 | 70 % | ||||||||||||||||||||||||||||||||
| Non-GAAP* | ||||||||||||||||||||||||||||||||||||||
| Core operating earnings/(loss) | $90 | ($642) | NM | ($1,829) | ($4,662) | NM | ||||||||||||||||||||||||||||||||
| Core operating margins | 0.4 | % | (3.2) | % | NM | (2.4) | % | (7.0) | % | NM | ||||||||||||||||||||||||||||
| Core loss per share | ($0.47) | ($1.75) | NM | ($5.81) | ($11.06) | NM | ||||||||||||||||||||||||||||||||
“While we report our financial results today, our full focus is on taking comprehensive actions to strengthen quality at Boeing, including listening to input from our 737 employees that do this work every day,” said Dave Calhoun, Boeing president and chief executive officer.
“As we move forward, we will support our customers, work transparently with our regulator and ensure we complete all actions to earn the confidence of our stakeholders.”
The main topic of conversation has been understandably about the 737 MAX, with Boeing saying the following on this in the financial results:
“Commercial Airplanes fourth quarter revenue increased to $10.5 billion driven by higher deliveries and favorable mix (Table 4). Operating margin of 0.4 percent also reflects improved performance and lower abnormal costs.”
“The company continues to cooperate transparently with the FAA following the Alaska Airlines Flight 1282 accident involving a 737-9.”
“Commercial Airplanes is taking immediate actions to strengthen quality on the 737 program, including requiring additional inspections within its factory and at key suppliers, supporting expanded oversight from airline customers and pausing 737 production for one day to refocus its employees on quality.”
“The company has also appointed an outside expert to lead an in-depth independent assessment of Commercial Airplanes’ quality management system, with recommendations provided directly to Calhoun and the Aerospace Safety Committee of Boeing’s Board of Directors.”
“The 737 program continues to deliver airplanes and its production rate is now at 38 per month. The 787 program production rate is now at five per month.”
“During the quarter, Commercial Airplanes booked 611 net orders, including 411 737, 98 777X, and 83 787 airplanes, began certification flight testing on the 737-10, and resumed production on the 777X program.”
“Commercial Airplanes delivered 157 airplanes during the quarter and backlog included over 5,600 airplanes valued at $441 billion.”
Breakdown of this is below:
| Table 4. Commercial Airplanes | Fourth Quarter | Full Year | ||||||||||||||||||||||||||||||||||||
| (Dollars in Millions) | 2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||||||||||||||||||||
| Deliveries | 157 | 152 | 3 % | 528 | 480 | 10 % | ||||||||||||||||||||||||||||||||
| Revenues | $10,481 | $9,271 | 13 % | $33,901 | $26,026 | 30 % | ||||||||||||||||||||||||||||||||
| Earnings/(loss) from operations | $41 | ($603) | NM | ($1,635) | ($2,341) | NM | ||||||||||||||||||||||||||||||||
| Operating margins | 0.4 | % | (6.5) | % | NM | (4.8) | % | (9.0) | % | NM | ||||||||||||||||||||||||||||
LIVE: Boeing Earnings Call!…
Onwards to the earnings call at 3:30pm UK time. Keep refreshing for updates.
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