Boeing Co (BA-US) posted a fourth-quarter loss of $663 million as supply chain issues weighed on results, although a rebound in aircraft sales and deliveries boosted revenue growth.
Airlines and aircraft manufacturers have benefited from a sharp recovery in air travel, one of the industries hardest hit by the pandemic. But Boeing leaders have been hesitant to ramp up production of the plane until the supply chain stabilizes.
The company produces 31 737 jets a month and plans to increase its monthly capacity to about 50 in 2025 or 2026. The company said it will increase its low production rate of the 787 Dreamliner to five a month by the end of this year and 10 a month in 2025 or 2026. Deliveries of the wide-body jet were suspended for about two years due to a production defect and only resumed last summer.
Although revenue rose 7 percent to $66.6 billion, Boeing posted a full-year loss of $5 billion.
Here’s how Boeing’s performance in the fourth quarter compares to analyst estimates, as complied with by Refinitiv:
●Adjusted loss of $1.75 per share, compared with expectations for profit of 26 cents per share Revenue of $19.98 billion, below expectations of $20.38 billion
Boeing generated $3.1 billion in cash flow in the fourth quarter, topping analysts’ expectations, and $2.3 billion in full-year cash flow, the most since 2018 after two deadly 737 Max crashes sparked the crisis. The company’s years-long crisis.
The company said its commercial aircraft division posted fourth-quarter sales of $9.2 billion, up 94% from a year earlier, as deliveries surged, but the unit remained in the red due to unusual costs and other expenses such as research and development.
Boeing reiterated its guidance that it expects to generate $3 billion to $5 billion in free cash flow this year.
“We are proud of the way we closed 2022 and despite the obstacles ahead, we are confident in the path forward,” CEO Dave Calhoun said in a memo to employees. “We have a strong development plan team, are innovating for the future, and I’m investing more to prepare our next generation of products.”