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Embattled airplane manufacturer Boeing admits to tough road ahead as it reveals its 2019 financial accounts

written by WOFA | January 30, 2020

Boeing has reported an annual loss of US$636 million for 2019, the first negative result since 1997.

Total revenues for the commercial airplanes business segment for the manufacturer was $32.3 billion for the year, down from $57.5 billion the year prior. (Source: Shutterstock)

The loss compares to the US$10.5 billion profit registered the year prior, which was issued only a few months prior to the second crash of the 737 MAX and its subsequent grounding.

Total revenue for the fourth quarter of 2019 was US$17.9 billion, lifting annual revenue to US$76.6 billion, delivering a GAAP loss per share of US$1.12.

Annual operating cash flow was negative US$2.4 billion.

According to Boeing, there is a total backlog of US$463 billion in orders.

Boeing announced this month that it had suspended the production of the 737 MAX, with the platform grounded in March by regulators after the second of two Max crashes.

The Ethiopian Airlines disaster resulted in the deaths of 346 passengers, which followed the crash of a Lion Air 737 MAX in October 2018 off the coast of Indonesia that killed 189 people.

Boeing president and chief executive officer David Calhoun, who took over from the embattled former CEO just this month, said the company had a lot of work to do to regain confidence of customers and the wider flying public.

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“We are focused on returning the 737 MAX to service safely and restoring the long-standing trust that the Boeing brand represents with the flying public,” he said.

“We are committed to transparency and excellence in everything we do. Safety will underwrite every decision, every action and every step we take as we move forward.”

“Fortunately, the strength of our overall Boeing portfolio of businesses provides the financial liquidity to follow a thorough and disciplined recovery process.”

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Total revenues for the commercial airplanes business segment for the manufacturer was US$32.3 billion for the year, down from US$57.5 billion the year prior. The total annual loss was US$6.7 billion.

The unit delivered 380 commercial airplanes over the year, compared to 806 in 2018.

Commercial airplanes backlog now includes over 5,400 airplanes, valued at $377 billion.

The defence, space and security segment was lacklustre, impacted by the widening 737 MAX saga and a NASA commercial crew change.

Fourth-quarter revenue decreased to US$6.0 billion; full-year revenue for the defence, space and security segment was US$26.2 billion, down from US$26.4 billion the year prior.

During the quarter, the defence, space and security segment received an award for 10 space launch system core stages and up to eight exploration upper stages.

It also received contracts for the remanufacture of 47 AH-64E Apache helicopters for three countries and the upgrade to the NATO Airborne Warning and Control System fleet.

Backlog in the defence, space and security segment was US$64.0 billion, 29 per cent of which is for customers outside the US.

More analysis to follow.

 

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