Boeing announced significant losses and weak sales for 2024, reflecting production issues and labour disruptions.
Major Charges and Workforce Reductions
Boeing incurred $3 billion (€2.85 billion) in charges during the fourth quarter of 2024. These charges stemmed from a lengthy machinists’ strike, workforce reductions, and problems with government programmes. The company revealed it would report a $5.46 (€5.19) per share loss, far exceeding Wall Street’s expected $1.80 loss per share.
Boeing faced disruptions in Washington, where the 737 Max, 777, and 767 jet production stalled for seven weeks due to the strike. The stoppage ended after Boeing agreed to improve worker pay and benefits. In addition, Boeing announced a 10% workforce reduction to cut costs.
Financial Impact on Programmes and Revenue
Boeing took $1.1 billion (€1.05 billion) in charges related to the 777 and 767 programmes during the fourth quarter. Another $1.7 billion (€1.62 billion) in charges came from government projects, including the military refuelling tanker and Air Force One replacement aircraft.
The company reported $15.2 billion (€14.46 billion) in fourth-quarter revenue, falling short of analysts’ $16.6 billion (€15.8 billion) estimate. CEO Kelly Ortberg acknowledged the near-term challenges but highlighted progress made in stabilising the business. Ortberg noted that Boeing resumed production of the 737, 767, and 777/777X and secured capital to strengthen its financial position.
Potential Sale of Assets and Market Reactions
Boeing is considering selling its Jeppesen navigation unit to reduce its $58 billion debt. Bloomberg reported that the potential sale, valued at $6-8 billion, has attracted interest from aviation suppliers and private equity firms, including RTX, Honeywell, and GE Aerospace.
Following the release of its preliminary results, Boeing’s share price dipped on Thursday but rebounded by over 2% on Friday morning. The company plans to release detailed fourth-quarter financial results on 28 January. Despite the setbacks, Boeing aims to rebuild its future through strategic initiatives and operational focus.