ARLINGTON, Va., Jan. 23,
2025 /PRNewswire/ -- The Boeing Company [NYSE: BA]
announced today it will recognize impacts to its financial results
related to the IAM work stoppage and agreement, charges for certain
Defense, Space & Security programs and costs associated with
workforce reductions announced last year when it reports fourth
quarter results on January 28. The
company expects to report fourth quarter revenue of $15.2 billion, GAAP loss per share of
($5.46), and operating cash flow of
($3.5) billion. Cash and investments
in marketable securities totaled $26.3
billion at the end of the quarter.
"Although we face near-term challenges, we took important steps
to stabilize our business during the quarter including reaching an
agreement with our IAM-represented teammates and conducting a
successful capital raise to improve our balance sheet," said
Kelly Ortberg, Boeing president and
chief executive officer. "We also restarted 737, 767 and 777/777X
production and our team remains focused on the hard work ahead to
build a new future for Boeing."
Commercial Airplanes results will reflect impacts associated
with the IAM work stoppage and agreement including lower deliveries
and pre-tax earnings charges of $1.1
billion on the 777X and 767 programs. The 777X program
pre-tax charge of $0.9 billion
reflects higher estimated labor costs associated with finalizing
the IAM agreement and will be incurred over the next several years.
The company still anticipates first delivery of the 777-9 in 2026.
Commercial Airplanes expects to report fourth quarter revenue of
$4.8 billion and operating margin of
(43.9) percent.
Defense, Space & Security expects to recognize pre-tax
earnings charges of $1.7 billion on
the KC-46A, T-7A, Commercial Crew, VC-25B, and MQ-25 programs. The
KC-46A program pre-tax charge of $0.8
billion reflects higher estimated manufacturing costs,
including impacts of the IAM work stoppage and agreement. The T-7A
program pre-tax charge of $0.5
billion was primarily driven by higher estimated costs on
production lots in 2026 and beyond. Defense, Space & Security
expects to report fourth quarter revenue of $5.4 billion and operating margin of (41.9)
percent.
Caution Concerning Forward-Looking Statements
The preliminary estimated financial results for the quarter
ended December 31, 2024 included in
this press release are preliminary, unaudited and subject to
completion, and may change as a result of management's continued
review. Such preliminary results are subject to the finalization of
quarter-end financial and accounting procedures. The preliminary
financial results represent management estimates that constitute
forward-looking statements subject to risks and uncertainties. As a
result, the preliminary financial results may materially differ
from the actual results when they are completed and publicly
disclosed. This press release contains "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995. Words such as "may," "will," "should," "expects,"
"intends," "projects," "plans," "believes," "estimates," "targets,"
"anticipates," and other similar words or expressions, or the
negative thereof, generally can be used to help identify these
forward-looking statements. Examples of forward-looking statements
include statements relating to our future financial condition and
operating results, as well as any other statement that does not
directly relate to any historical or current fact. Forward-looking
statements are based on expectations and assumptions that we
believe to be reasonable when made, but that may not prove to be
accurate.
Forward-looking statements are not guarantees and are subject to
risks, uncertainties, and changes in circumstances that are
difficult to predict. Many factors could cause actual results to
differ materially and adversely from these forward-looking
statements. Among these factors are risks related to: (1) general
conditions in the economy and our industry, including those due to
regulatory changes; (2) our reliance on our commercial airline
customers; (3) the overall health of our aircraft production
system, production quality issues, commercial airplane production
rates, our ability to successfully develop and certify new aircraft
or new derivative aircraft, and the ability of our aircraft to meet
stringent performance and reliability standards; (4) changing
budget and appropriation levels and acquisition priorities of the
U.S. government, as well as significant delays in U.S. government
appropriations; (5) our dependence on our subcontractors and
suppliers, as well as the availability of highly skilled labor and
raw materials; (6) work stoppages or other labor disruptions; (7)
competition within our markets; (8) our non-U.S. operations and
sales to non-U.S. customers; (9) changes in accounting estimates;
(10) our pending acquisition of Spirit AeroSystems Holdings, Inc.
(Spirit), including the satisfaction of closing conditions in the
expected timeframe or at all; (11) realizing the anticipated
benefits of mergers, acquisitions, joint ventures/strategic
alliances or divestitures, including anticipated synergies and
quality improvements related to our pending acquisition of Spirit;
(12) our dependence on U.S. government contracts; (13) our reliance
on fixed-price contracts; (14) our reliance on cost-type contracts;
(15) contracts that include in-orbit incentive payments; (16)
management of a complex, global IT infrastructure; (17) compromise
or unauthorized access to our, our customers' and/or our suppliers'
information and systems; (18) potential business disruptions,
including threats to physical security or our information
technology systems, extreme weather (including effects of climate
change) or other acts of nature, and pandemics or other public
health crises; (19) potential adverse developments in new or
pending litigation and/or government inquiries or investigations;
(20) potential environmental liabilities; (21) effects of climate
change and legal, regulatory or market responses to such change;
(22) credit rating agency actions and our ability to effectively
manage our liquidity; (23) substantial pension and other
postretirement benefit obligations; (24) the adequacy of our
insurance coverage; and (25) customer and aircraft concentration in
our customer financing portfolio.
Additional information concerning these and other factors can be
found in our filings with the Securities and Exchange Commission,
including our most recent Annual Report on Form 10-K, Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K. Any
forward-looking statement speaks only as of the date on which it is
made, and we assume no obligation to update or revise any
forward-looking statement, whether as a result of new information,
future events, or otherwise, except as required by law.
Contact:
Investor Relations: BoeingInvestorRelations@boeing.com
Communications: Media@boeing.com
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SOURCE Boeing
