Boeing falls on surprise 4Q loss; posts first annual cash inflow since 2018

By Geoffrey Smith 

Investing.com -- Boeing (NYSE:BA) lost money again in the final quarter of last year, as its key commercial airplane division suffered from delays to the production of its 777-9 widebody aircraft announced earlier in the year.

The company blamed "abnormal costs and period expenses, including research and development" for a surprise operating loss of $626 million at the division, which led the group to post a loss of $1.75 a share. Analysts had expected earnings of 27c a share.

Boeing's revenue also fell some 2% short of expectations in the three months through December, despite rising 35% from a year earlier to $19.98B.

The group nonetheless reached a key milestone in its recovery from the twin blows of the pandemic and two fatal crashes involving its 737 MAX airliner, saying its cash flow turned positive in 2022 for the first time since 2018.

The company said operating cash flow totaled $3.5B, a swing from outflows of $3.4B in 2021 when it was still afflicted by canceled or suspended orders from its key airline customers. It also predicted that things will improve this year, seeing operating cash flow of between $4.5-6.5B and free cash flow between $3.0-5.0B.

"While challenges remain, we are well positioned and are on the right path to restoring our operational and financial strength," said Boeing President and Chief Executive Officer Dave Calhoun, adding that the group had had a "solid" fourth quarter, and that "demand across our portfolio is strong."

Orders for the group's airliners have recovered strongly, as the end of the pandemic gave airlines more confidence to plan for the future. In the fourth quarter alone, the company received net orders for 376 aircraft, including one from United Airlines for 100 of its 737 MAX and 100 of its 787 airliners.

Its other main division, Defense, Space and Security, posted a 5% rise in revenue to $6.28B, but eked out an operating profit of only $112M, as it continued to suffer from labor problems and supply chain disruptions.