(MENAFN- Bangladesh Monitor)
Virginia, USA: Boeing on Tuesday (Jan 28) revealed a $11.8 billion annual loss in 2024 - its worst in four years.
The announcement came as the US aerospace giant tried to look ahead under new CEO Kelly Ortberg, having endured a tumultuous 12 months marked by safety and maintenance issues and a months-long labor strike.
Finance executive Brian West told investors Tuesday that production standards have improved, and that US regulators will likely soon greenlight the company to ramp back up production, especially as its European rival, Airbus, now has a clear sales lead worldwide.
On Wall Street more broadly, investors appear generally optimistic about new US President Donald Trump's pro-business stance, although some have cautioned that federal budget cuts, trade measures, andAI could pose potential risks to growth.
The loss per share of $5.46 exceeded Wall Street's expectation of $3.08, while quarterly revenue of $15.2 billion fell short of the $15.7 billion forecast. Full-year revenue declined 14pc to $66.5 billion.
The machinists' strike, which lasted over seven weeks, disrupted production of Boeing's key models, including the 737 Max, 777, and 767. The walkout ended with agreements on pay raises and improved benefits. Boeing also faced challenges with its government contracts, including $1.7 billion in charges related to projects such as the Air Force One replacement and military refueling tankers.
Boeing delivered 348 jetliners in 2024, a significant drop from the 528 delivered in 2023 and far behind competitor Airbus. A majority of the deliveries were 737 Max jets, underscoring their importance to Boeing's operations. However, a door plug failure on a 737 Max in January led the Federal Aviation Administration (FAA) to restrict production until safety and quality issues were resolved.
The production issues also impacted new orders, with no 737 Max sales recorded for two months and Boeing ending the year well behind Airbus in net commercial plane orders.
Despite these challenges, Boeing's stock inched up less than 1% in early trading on Tuesday, reflecting cautious investor sentiment.
-B
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