Boeing Q4 Earnings Report

Before Wednesday’s EST, Boeing announced its fourth-quarter 2021 earnings report. Although it lost $4.5 billion due to the production problems of the 787 Dreamliner, Boeing achieved positive cash flow in Q4 for the first time since the beginning of 2019. According to the financial report, Boeing’s Q4 revenue was US$14.793 billion, down 3% year-on-year; Q4 net loss was US$4.17 billion, and the full year 2021 loss was US$4.29 billion. This is the company’s third consecutive loss. The epidemic and production problems hurt profits ; Q4 net loss per share of $ 7.69, far more than analysts expected $ 0.4.

Before the market on Wednesday, Eastern Time, Boeing announced its fourth-quarter 2021 financial report. Although it lost $4.5 billion due to the production problems of the 787 Dreamliner, Boeing achieved positive cash flow in Q4 for the first time since the beginning of 2019.

According to the financial report, Boeing’s Q4 revenue was US$14.793 billion, down 3% year-on-year; Q4 net loss was US$4.17 billion, and the full year 2021 loss was US$4.29 billion. This is the company’s third consecutive loss. The epidemic and production problems hurt profits ; Q4 net loss per share of $ 7.69, far more than analysts expected $ 0.4.

The grounding of the workhorse 737 Max, the Covid-19 pandemic and a slew of quality problems cost Boeing more than $31 billion in a three-year run of losses.

Boeing posted a $3.5 billion pretax non-cash charge related to 787 delivery delays and customer concessions, as well as another $1 billion in unusual production costs.

Overall, Boeing’s Q4 response was mixed. What surprised Wall Street was that Boeing’s Q4 free cash flow was $494 million. Analysts had expected outflows of about $1 billion. Positive cash flow for the first time since early 2019.

The problem of the 787 passenger plane began in September 2020. The plane was exposed to problems with the horizontal stabilizer of the fuselage. The Federal Aviation Administration (FAA) subsequently launched an investigation and asked Boeing to stop delivering the 787 passenger plane and make rectifications. Boeing briefly resumed deliveries of the 787 in March last year after a five-month hiatus. By May last year, however, the company was forced to again suspend 787 deliveries as the FAA expressed concerns about Boeing’s proposed inspection methods.

Boeing has not delivered a single 787 since last June, and delivered just 14 787 Dreamliners in 2021, down from 41 in 2020.

Boeing delivered a total of 340 planes to customers in 2021, up from 157 in 2020, but down from 380 in 2019 and far below the record 806 in 2018. In contrast, Airbus delivered a total of 611 aircraft in 2021, taking the crown as the world’s largest aircraft manufacturer for the third consecutive year.

 

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Summary

Before Wednesday's EST, Boeing announced its fourth-quarter 2021 earnings report. Although it lost $4.5 billion due to the production problems of the 787 Dreamliner, Boeing achieved positive cash flow in Q4 for the first time since the beginning of 2019.

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