Boeing grows backlog and airs plans to up production of 737s and 787s
Boeing Co. stock fell Wednesday after the aerospace giant reported an unexpected loss due partly to high expenses as it shapes plans to increase production of its 737 and 787 planes.
On the plus side, Boeing’s fourth-quarter free cash flow of $3.1 billion rose sharply from $494 million in the year-ago period.
“Cashflow was boosted by a good quarter of aircraft deliveries [and] was in line with our forecast,” said analyst Robert Stallard of Vertical Research Partners.
Boeing stock fell 1.2%.
Boeing’s BA, +0.33% massive commercial airplane segment weighed on the company’s quarterly results, with an operating margin of negative 6.8% that reflected “abnormal costs and period expenses, including research and development.”
The plane maker’s stock dropped 0.4% on Wednesday.
Boeing said its fourth-quarter loss narrowed to $634 million, or $1.06 a share, from a loss of $4.16 billion, or $7.02 a share, in the year-ago quarter. The company’s adjusted loss in the latest quarter was $1.75 a share.
Wall Street analysts expected Boeing to earn 20 cents a share, according to estimates compiled by FactSet.
Fourth-quarter revenue increased to $19.98 billion from $14.79 billion in the year-ago quarter. Analysts were looking for revenue of $20.32 billion.
Boeing’s backlog increased to $404 billion from $377.5 billion in the year-ago period.
The commercial airplane unit reported a $626 million loss from operations, and accounted for a big chunk of Boeing’s overall loss.
Boeing said its 737 program is stabilizing production at 31 per month. It plans to increase production to 50 per month by 2025/2026 and also planning to boost output of 787 planes to five per month in late 2023 and ten per month within the next three years.
Boeing’s defense, space and security unit swung to an operating profit of $112 million in the fourth quarter, from a loss of $255 million in the year-ago quarter.
CEO Dave Calhoun described the results as “solid” as the company marked 2022 as “an important year in our recovery.”
Boeing remains focused on driving stability in its operations and investing in its business while “innovating and prioritizing safety, quality and transparency,” Calhoun said.
“While challenges remain, we are well positioned and are on the right path to restoring our operational and financial strength,” he said.
Looking ahead, Boeing reiterated its guidance for $4.5 billion to $6.5 billion of operating cash flow and $3 billion to $5 billion free cash flow for full-year 2023.
Prior to Wednesday’s moves, Boeing stock is up 11.3% in 2023, compared to a 1.8% rise by the Dow Jones Industrial Average DJIA, +0.03%.