Despite seeing an increase in product demand for the fourth quarter of 2022, Boeing suffered a mammoth loss of $663 million due to macroeconomic constraints.
Boeing (NYSE: BA) recently published its Financial report for the fourth quarter of 2022, which showed a failed effort characterized by labor and supply tensions. The American aircraft manufacturing giant posted a $663 million loss in the fourth quarter amid supply chain restrictions. These unsavory operating elements dwarfed the revenue growth the company earned from higher demand in aircraft sales and deliveries.
Nonetheless, Boeing CEO Dave Calhoun viewed the latest quarterly output with optimism. Calhoun stated:
“We had a strong fourth quarter and 2022 turned out to be an important year in our recovery. Demand across our portfolio is strong and we remain focused on driving stability across our operations and within the supply chain to meet our commitments in 2023 and beyond.”
In addition, the CEO of the company also said that Boeing continues to invest in its business while innovating and prioritizing safety. In addition, he explained that Boeing will seek quality and transparency in all its operational actions.
Boeing Q4 2022 Revenue Entry
For the fourth quarter of 2022, Boeing reported revenue collection of $19.98 billion compared to the higher $20.38 billion analysts had expected. Additionally, the company’s adjusted loss per share was $1.75 versus much lower expected earnings per share of 26 cents.
Amid rising demand for Boeing’s products, top executives at the Chicago-based company are holding back from ramping up production. In a memo to staff, Calhoun said:
“We are proud of how we closed out 2022 and despite the obstacles ahead, we are confident in the path ahead. We have a strong portfolio of development programs; we are innovating for the future and are increasing investments to prepare for our next generation of products.”
Despite labor and supply headwinds, Boeing also generated positive free cash flow in 2022 for the first time since 2018. Since the easing of pandemic restrictions, aircraft operators and manufacturers have benefited from a strong rebound in air travel. During the height of Covid, the airline space ranked high among the hardest-hit industries around the world.
For the fourth quarter of 2022, Boeing generated $3.1 billion in cash flow. This sum was much higher than consensus estimates of $2.3 billion for the year and represented the most since 2018. In the time that followed, the aeronautical corporation endured a year-long crisis sparked by the second of two fatal accidents. 737 Max.
Calhoun conceded that despite the obvious challenges, Boeing remains well positioned to restore its financial and operational strength.
Boeing’s BA shares were trading 1% lower in premarket trading after its latest quarterly results.
$13.5B Delta Air Lines Offer
Last July, Boeing received a substantial order from Delta Air Lines Inc (NYSE: DAL) for 100 737 Max 10 jets. Delivery of said aircraft would reportedly begin in 2025 in a deal worth around $13.5 billion. In addition, the agreement is Delta’s first with Boeing in more than 10 years and includes an option for 30 more Boeing aircraft.
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Tolu is a Lagos-based blockchain and cryptocurrency enthusiast. He likes to demystify crypto stories down to the basics so that anyone anywhere can understand them without too much prior knowledge. When he’s not up to his neck in crypto-stories, Tolu likes music, loves to sing, and is an avid movie buff.
