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Aerospace Giant Boeing (BA) Reports Huge Q4 losses Plus Delayed Entry of 777X Jet

By John F. Heerdink, Jr.

Aerospace giant, Boeing (BA) reports huge Q4 losses as the company recorded numerous charges and the delayed the entry of its 777X jet. The company reported a net loss of $11.9 billion and a core loss of $15.25 per share as it booked $8.3 billion in pre-tax charges. Revenue dropped 15% to $15.3 billion due to several charges during the quarter. Q4 witnessed a cash outflow of $4.27 billion, with 2020 witnessing an overall $12 billion cash drain.

Its biggest fourth-quarter charge was a $6.5 billion reach-forward loss on its 777X program as the company does not expect the first delivery of the new wide-body until late 2023 much later than its 2022 timeline given in July.

Other Highlights from the quarter:

  • Boeing also reported a $468 million charge due to abnormal production costs with the 737 Max and a $275 million charge for the Air Force’s KC-46 tanker due to “production inefficiencies including impacts of COVID-19 disruption.”
  • The quarter charges also included $744 million on a settlement with the Justice Department over the 737 Max and a $290 million charge in its Boeing Global Services unit.
  • Its commercial aircraft deliveries dropped 25% to 59 in the fourth quarter.

Also earlier this week, the European Union Aviation Safety Agency announced the Boeing 737 Max safe to return to service, joining the U.S. It mandated software upgrades, electrical rework, manual updates, crew training, and more as a condition of the approval.

Dow 30 component Boeing (NYSE: BA) is the world’s largest aerospace company and leading manufacturer of commercial jetliners and defense, space, and security systems. To learn more about Boeing (BA) and to track its ongoing progress please visit the Vista Partners Boeing (BA) Coverage Page.





Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives.

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(Read Original Story: Boeing Posts Massive Q4 Loss On Long List Of Charges; 777X Delayed in Investor's Business Daily)


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