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Boeing expects Q4 loss due to strikes, program fees By Investing.com



The company’s preliminary financial results are based on management’s estimates and will be finalized upon completion of the financial statements and quarterly accounts. The information disclosed in this article is based on a press release from Boeing, and actual results may differ when finalized and publicly announced. Boeing’s fourth quarter results will be officially reported on January 28. Depending on the current InvestingPro analysis, the stock appears to be very valuable, and analysts set price targets from $85 to $250. Investors looking for deeper insight can access the Pro Research Report, which provides a detailed analysis of Boeing’s financial health, valuation, and growth prospects, along with 7 additional exclusive ProTips. It depends on the current InvestingPro analysis, the stock appears to be very valuable, and analysts set price targets from $85 to $250. Investors looking for deeper insight can access the Pro Research Report, which provides a detailed analysis of Boeing’s financial health, valuation, and growth prospects, along with 7 additional exclusive ProTips.

The financial consequences are due to the suspension of work by the International Labor Organization (IAM) and the following agreement, as well as the costs related to certain programs of Safety, Space and Security and costs from the reduction of personnel announced during the year the past. Boeing’s Commercial Airplanes segment is expected to report revenue of $4.8 billion with an operating margin of 43.9 percent, driven by lower costs and pre-tax earnings of $1.1 billion on the 777X programs and 767.

The 777X program in particular is facing a pre-tax charge of $0.9 billion due to increased labor costs related to the completion of the IAM agreement, which will be carried out in the coming years. Despite these setbacks, Boeing is planning delivery of the first 777-9 in 2026.

Boeing’s Defense, Space & Security division is also expected to receive pre-tax payments totaling $1.7 billion on several programs, including the KC-46A tanker and T-7A trainer aircraft, the program the KC-46A alone accounted for $0.8 billion. fees due to higher production costs and the effect of IAM work stoppages. The division forecasts fourth-quarter revenue of $5.4 billion and an operating margin of (41.9).

Kelly Ortberg, president and CEO of Boeing, acknowledged the near-term challenges but emphasized the steps taken to stabilize the business, such as reaching an agreement with workers represented by the IAM and raising funds that were successful in improving the company’s balance sheet. company. Boeing also started production of its 737, 767, and 777/777X models.

The company’s preliminary financial results are based on management’s estimates and will be finalized upon completion of the financial statements and quarterly accounts. The information disclosed in this article is based on a press release from Boeing, and actual results may differ when finalized and publicly announced. Boeing’s fourth quarter results will be officially reported on January 28.

In other recent news, Boeing Co (NYSE: ). it faces a significant drop in annual supply by 2024, which has hit the bottom since the COVID-19 pandemic. The company delivered a total of 348 commercial jets, a sharp drop from last year’s 528. Boeing’s new jet orders in 2024 were less than half of what was reported in 2023. despite these problems, Ryanair Holdings (NASDAQ:) Plc, the largest. The European operator of Boeing’s 737 Max, expects that the company will again improve the competition with the expected return of Donald Trump to the White House.

In addition, Boeing’s Q4 2024 delivery figures revealed a total of 57 commercial jets delivered, contributing to the year’s total of 348 aircraft. The 737 model led in unit deliveries 36 in the fourth quarter, ending the year with 265 reliefs. Among these events, Boeing is currently negotiating a new agreement with US prosecutors related to the accidents two fatal 737 MAX.

In addition, AerCap, the world’s largest aircraft leasing company, has expressed concern about potential trade tariffs proposed by US President-elect Donald Trump, which could hamper Boeing’s earnings. . Good news, Barclays (LON:) Boeing stock upgraded from Equalweight to Overweight, expected to have stable production and delivery performance through 2025. These are the latest changes regarding Boeing Co.

This article was created with the support of AI and reviewed by the editor. For more information, see our T&C.





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