Boeing (BA) Reports Q4 Results 21

An American Airlines Boeing 787-9 Dreamliner approaches for a landing at Miami International Airport on December 10, 2021 in Miami, Florida.

Joe Raedle | Getty Images

Boeing has levied $3.5 billion pre-tax on its 787 Dreamliners after production problems prevented the company from supplying the planes to airlines in the past 15 months.

However, the company said on Wednesday it generated positive cash flow in the fourth quarter, reaching that important milestone earlier than Boeing executives had forecast. It was powered by a jump in deliveries last year from its 737 Max after regulators lifted the ban on the jets after two fatal crashes.

Here’s how the company performed compared to analyst estimates met by Refinitiv:

  • Adjusted results: A loss of $7.69 per share versus an expected loss of 42 cents per share.
  • Revenue: $14.79 billion versus $16.59 billion, expected.

Boeing lost $4.29 billion last year, its third annual loss in a row, as the pandemic and manufacturing problems continued to hurt profits. It’s an improvement from 2020, when the company lost $11.94 billion.

For the fourth quarter, Boeing reported a net loss of $4.16 billion, less than half of the $8.44 billion it lost a year earlier. Revenue fell 3% from a year ago to $14.79 billion, lower than the $16.59 billion analysts had expected.

“2021 was an important rebuilding year for us, and together we overcame important hurdles,” CEO David Calhoun said in a note to workers on Wednesday. “While we still have more work to do, I am confident we are well positioned to accelerate our progress into 2022 and beyond.”

Boeing aircraft sales and deliveries rose last year, but transfers of new aircraft to airlines lagged behind rival Airbus.

Boeing has been hampered by the interruption of deliveries of its 787 Dreamliners over the past year due to a series of manufacturing defects, challenging customers such as American Airlines and Hawaiian Airlines.

American Airlines said last month it would shorten its international schedule due to 787 delivery delays. The airline’s CFO Derek Kerr said during an earnings call last week that Boeing was already paying fines for the delays and “will compensate us for the losses” if there are additional delays.

The aircraft manufacturer has scaled down the production of Dreamliner, which has pushed up costs. The entire debacle is expected to cost $5.5 billion, including $2 billion in additional costs through 2023.

Still, Calhoun has said he expects the worst to be behind the airline industry after the pandemic devastated travel demand. Airlines executives said earlier in January that they expect international demand for travel to pick up again this spring and summer after travel restrictions were lifted in recent months.

Boeing and Airbus supplier General Electric forecast a 20% increase in sales this year on Tuesday at its main aviation unit, which manufactures and repairs aircraft engines.

The company will hold an ET call with analysts at 10:30 a.m., when executives are likely to be questioned about production pace, supply chain issues and potential business implications of rising tensions over Ukraine.

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