ARLINGTON, Va., Oct. 11,
2024 /PRNewswire/ -- The Boeing Company [NYSE: BA]
announced today it will recognize impacts to its financial results
related to charges for certain programs across the Commercial
Airplanes and Defense, Space & Security segments and the IAM
work stoppage when it reports third quarter results on October 23. The company expects to report third
quarter revenue of $17.8 billion, GAAP loss per share of
($9.97), and operating cash flow of
($1.3) billion. Cash and
investments in marketable securities totaled $10.5 billion at the end of the quarter.
"While our business is facing near-term challenges, we are
making important strategic decisions for our future and have a
clear view on the work we must do to restore our company," said
Kelly Ortberg, Boeing president and
chief executive officer. "These decisive actions, along with key
structural changes to our business, are necessary to
remain competitive over the long term. We are also focusing on
areas that are critical to our future and will ensure we have the
balance sheet necessary to invest, support our people and deliver
for our customers."
Commercial Airplanes expects to recognize pre-tax earnings
charges of $3.0 billion on the 777X
and 767 programs. The company now anticipates first delivery of the
777-9 in 2026 and the 777-8 freighter in 2028, resulting in a
pre-tax earnings charge of $2.6
billion. This schedule and resulting financial impact are
based on an updated assessment of the certification timelines to
address the delays in flight testing of the 777-9, as well as
anticipated delays associated with the IAM work stoppage.
Commercial Airplanes also plans to conclude production of the 767
freighter and recognize a $0.4
billion pre-tax charge on the program, which also reflects
impacts from the IAM work stoppage. Beginning in 2027, the company
will solely produce 767-2C aircraft in support of the KC-46A Tanker
program. Commercial Airplanes expects to report third quarter
revenue of $7.4 billion and
operating margin of (54.0) percent.
Defense, Space & Security expects to recognize pre-tax
earnings charges of $2.0 billion on
the T-7A, KC-46A, Commercial Crew, and MQ-25 programs. The T-7A
program pre-tax charge of $0.9
billion was driven by higher estimated costs on production
contracts in 2026 and beyond. The KC-46A program pre-tax charge of
$0.7 billion reflects the decision to
conclude production on the 767 freighter and impacts of the IAM
work stoppage. Results also include unfavorable performance on
other programs. Defense, Space & Security expects to report
third quarter revenue $5.5 billion
and operating margin of (43.1) percent.
Caution Concerning Forward-Looking Statements
The preliminary estimated financial results for the quarter
ended September 30, 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," "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) our pending
acquisition of Spirit AeroSystems Holdings, Inc. (Spirit),
including the satisfaction of closing conditions in the expected
timeframe or at all, (5) changing budget and appropriation levels
and acquisition priorities of the U.S. government, as well as
significant delays in U.S. government appropriations; (6) our
dependence on our subcontractors and suppliers, as well as the
availability of highly skilled labor and raw materials; (7) work
stoppages or other labor disruptions; (8) competition within our
markets; (9) our non-U.S. operations and sales to non-U.S.
customers; (10) changes in accounting estimates; (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) unauthorized access to our, our
customers' and/or our suppliers' information and systems; (17)
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; (18) potential adverse
developments in new or pending litigation and/or government
inquiries or investigations; (19) potential environmental
liabilities; (20) effects of climate change and legal, regulatory
or market responses to such change; (21) credit rating agency
actions and changes in our ability to obtain debt financing on
commercially reasonable terms, at competitive rates and in
sufficient amounts; (22) substantial pension and other
postretirement benefit obligations; (23) the adequacy of our
insurance coverage; and (24) 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
