Home Business Boeing closes 2022 with a loss despite rising cash flows. Costs and supply chain weigh

Boeing closes 2022 with a loss despite rising cash flows. Costs and supply chain weigh

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Boeing closes 2022 with a loss despite rising cash flows.  Costs and supply chain weigh

Title sales Boeing which currently registers a decline of more than 1% after the publication of the accounts unexpectedly below expectations.
In particular, the US aerospace giant, in the fourth quarter of 2022 recorded a loss of 663 million dollars, with a revenue of $19.98 billion (+35% over the same period of 2021, but below the 20.38 billion expected by analysts); while for all of 2022 the group’s net losses rose to $5 billion from $4.3 billion in 2021.
In addition, the company last quarter reported a loss of earnings per share of -$1.75which was $2.02 below analysts’ estimates of $0.27 per share.

Cash flow returns positive from 2018

However, for the second consecutive quarter, Boeing in the last quarter of 2022 generated a positive free cash flow of $3.1 billionagainst expectations of $2.3 billion. Free cash flow in 2022 stood at around €2 billion, positive for the first time since 2018, ahead of the second of the two fatal 737 Max crashes. Accidents that when combined with the problems caused by the pandemic Covid-19have strained the free cash flow from the company which it expects to return to generating in 2023 between $3 and $5 billion of free cash flow.

“We are proud of how we ended 2022 and, despite the obstacles ahead of us, we are confident in our path”, commented the CEO di Boeing Dave Calhoun in a note to employees. “We have a strong pipeline of development programs, we are innovating for the future and we are increasing investments to prepare for our next generation of products”.

Indeed, manufacturers and airlines have been among the sectors hardest hit by the Covid-19 pandemic, but now market leaders, including Boeing, seek (despite supply chain problems) to ramp up aircraft production in order to benefit from the resumption of air transport.

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Procurement problems and costs weigh heavily

In the fourth quarter of 2022, Boeing reported a loss of $663 million on supply chain issues, which weighed on the company’s results despite a rebound in aircraft sales and deliveries that boosted revenue.

In this sense, during the fourth quarter of 2022, Boeing’s Commercial Airplanes division received net orders for 376 aircraft and has delivered 152 aircraft, while the order book includes more than 4,500 aircraft valued at $330 billion.

Boeing is producing 31 of its 737 jets per month and plans to increase production to about 50 per month in 2025 or 2026.

Finally, the company highlighted how its commercial aircraft unit generated sales of $9.2 billion in the fourth quarter, in 94% increase over the previous year thanks to the increase in deliveries, but still produced a loss due to abnormal costs and other expenses such as research and development.

Despite the sales of today’s session, Boeing’s stock is up by +9.24% since the beginning of the year, while in the last three months it has risen by around 54%.

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