Boeing loses $663 million in 4Q despite higher revenue

Jan 25, 2023, 6:02 AM | Updated: 1:02 pm

Boeing said Wednesday it lost $663 million in the fourth quarter as higher production costs and supply-chain problems offset rising revenue.

It was another disappointing quarter for the aerospace giant, which has yet to recover from deadly crashes involving two of its 737 Max jets and a pandemic that depressed airline demand for new planes until recently.

Boeing lost $5 billion for the full year, pushing its losses since the start of 2019 to nearly $22 billion.

Despite the red ink, CEO David Calhoun struck a bullish tone on a call with analysts, saying the company is sticking with plans to increase jet production despite ongoing shortages from suppliers of engines and other key parts.

Boeing said it is stabilizing production of new 737s at 31 per month and plans to speed that up to about 50 per month by 2025 or 2026, and will also boost production of the 787, a larger plane that has been beset by manufacturing flaws.

The fourth-quarter loss and Boeing’s revenue both fell short of Wall Street expectations.

The loss amounted to $1.06 per share, or $1.75 per share after excluding pension adjustments. Analysts expected the company to earn 20 cents per share, according to a FactSet survey.

Revenue jumped 35% from a year earlier, to $19.98 billion, but still missed analysts’ target of $20.32 billion.

For a change, however, there were no major new charges or write-downs in the latest quarter, and cash flow — a measure that excludes many forms of non-cash spending — topped $3 billion. That allowed Boeing to report its first full year of positive cash flow since 2018.

Executives are counting on that cash to reduce Boeing’s $57 billion in debt.

Boeing, based in Arlington, Virginia, has seen deliveries rise since regulators approved the 737 Max to fly again in late 2021 and after the company satisfied regulators that it fixed production problems on another plane, the larger 787 Dreamliner. Deliveries are an important source of company cash.

The company hasn’t churned out as many new planes as it hoped because suppliers are dealing with labor and materials shortages.

“We continue to face a few too many stoppages in our (assembly) lines … as we run into supply-chain shortfalls,” Calhoun said.

Although airlines have been frustrated at their inability to receive planes they ordered, sales have picked up. Airlines are confident that the recovery in air travel will continue — they weren’t so sure earlier in the pandemic.

Boeing’s defense and space business returned to a narrow profit in the fourth quarter after losing $2.85 billion in the previous quarter on huge charges related to several programs including finishing two new Air Force One presidential jets.

Jeff Windau, an analyst for Edward Jones, said despite the surprising loss in the fourth quarter, Boeing’s long-term prospects remain good, with a growing backlog of airline plane orders and recent defense-contract wins. He said the company is getting a handle on its most immediate problem.

“It’s definitely a challenge with the supply-chain volatility,” he said, “but I feel that they definitely are laying out the issues and doing what they can to help their suppliers.”

The shares were down less than 1% in midday trading.


This story was corrected earlier to show that analysts in a FactSet survey expected revenue of $20.32 billion.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


Lead water pipes pulled from underneath the street are seen in Newark, N.J., Oct. 21, 2021. (AP Pho...

Associated Press

Biden to require cities to replace harmful lead pipes within 10 years

The Biden administration has previously said it wants all of the nation's roughly 9 million lead pipes to be removed, and rapidly.

18 hours ago

Facebook's Meta logo sign is seen at the company headquarters in Menlo Park, Calif., on, Oct. 28, 2...

Associated Press

Meta shuts down thousands of fake Facebook accounts that were primed to polarize voters ahead of 2024

Meta said it removed 4789 Facebook accounts in China that targeted the United States before next year’s election.

20 hours ago

A demonstrator in Tel Aviv holds a sign calling for a cease-fire in the Hamas-Israel war on Nov. 21...

Associated Press

Hamas releases a third group of hostages as part of truce, and says it will seek to extend the deal

The fragile cease-fire between Israel and Hamas was back on track Sunday as the first American was released under a four-day truce.

6 days ago

Men look over the site of a deadly explosion at Al-Ahli Hospital in Gaza City, Wednesday, Oct. 18, ...

Associated Press

New AP analysis of last month’s deadly Gaza hospital explosion rules out widely cited video

The Associated Press is publishing an updated visual analysis of the deadly Oct. 17 explosion at Gaza's Al-Ahli Hospital.

9 days ago

Peggy Simpson holds a photograph of law enforcement carrying Lee Harvey Oswald's gun through a hall...

Associated Press

JFK assassination remembered 60 years later by surviving witnesses to history, including AP reporter

Peggy Simpson is among the last surviving witnesses who are sharing their stories as the nation marks the 60th anniversary.

9 days ago

Israeli Prime Minister Benjamin Netanyahu, chairs the weekly cabinet meeting in Jerusalem, Sunday, ...

Associated Press

Israeli Cabinet approves cease-fire with Hamas; deal includes release of 50 hostages

Israel’s Cabinet on Wednesday approved a cease-fire deal with the Hamas militant group that would bring a temporary halt to a devastating war.

10 days ago

Sponsored Articles

Follow @KTAR923...

Valley residents should be mindful of plumbing ahead of holidays

With Halloween in the rear-view and more holidays coming up, Day & Night recommends that Valley residents prepare accordingly.


Dierdre Woodruff

Interest rates may have peaked. Should you buy a CD, high-yield savings account, or a fixed annuity?

Interest rates are the highest they’ve been in decades, and it looks like the Fed has paused hikes. This may be the best time to lock in rates for long-term, low-risk financial products like fixed annuities.



Key dates for Arizona sports fans to look forward to this fall

Fall brings new beginnings in different ways for Arizona’s professional sports teams like the Cardinals and Coyotes.

Boeing loses $663 million in 4Q despite higher revenue