WASHINGTON, Jan 25 (Reuters) – Boeing Co losses widened for 2022 on weakness in its defense unit as it warned of further supply chain issues, but the U.S. planemaker reported its first yearly positive cash flow since 2018.
Boeing said net losses rose to $5 billion for all of 2022 from $4.3 billion in 2021, while losses from operations rose to $3.5 billion in 2022 from $2.9 billion.
The U.S. planemaker missed Wall Street expectations on revenue and earnings per share in the final quarter of the year. Boeing shares, which have risen by more than 70% since September, fell 1% Wednesday.
Boeing Chief Executive Dave Calhoun told analysts the planemaker still faces “a difficult, difficult supply chain and while average deliveries met our objectives, we continue to face a few too many stoppages in our lines … So those stoppages, while they are coming down, are not where they need to be.”
Chief Financial Officer Brian West said the company was increasing its abnormal accounting estimate by about $600 million as it expects 787 production to remain lower for “a bit longer than expected due to a supplier constraint,” but still expects to raise its production rate to five per month later this year.
Boeing affirmed plans to deliver up to 450 737 MAX narrowbody aircraft and 70 to 80 widebody 787 Dreamliners in 2023. The company reiterated it expects to generate $3 billion to $5 billion in free cash flow in 2023.
Those numbers do not include the much-anticipated restart of Boeing jetliner deliveries to China. Calhoun declined to comment on when Chinese airlines could begin accepting aircraft from Boeing.
Boeing previously expressed interest in remarketing a portion of the Chinese 737 MAX planes, but Calhoun said Wednesday Boeing would “pause” its efforts “so that we can discern what China wants to do.”
China Southern Airlines began flying the 737 MAX earlier this month after an almost four-year pause.
About 138 of the 200 737 MAX planes in storage are meant for Chinese customers.
The supply chain issues come as Boeing is working to stabilize and ramp up production.
Reuters
Photo Rob Vogelaar
