In advance of reporting their official third quarter 2024 financial results, Boeing has released preliminary results, along with a message from President and CEO Kelly Ortberg outlining the company’s positioning for the future.
On Friday (October 11, 2024), Boeing reported preliminary third quarter results for the period ending September 30, 2024, with the full results to be released on October 23rd. The company’s third quarter results have been substantially impacted by the International Association of Machinists and Aerospace Workers (IAM) work stoppage, as well as charges in the commercial airplanes and defense segments. Boeing expects to report a Q3 GAAP loss of ($9.97) per share on revenue of $17.8 billion, and operating cash flow of ($1.3) billion. At the close of the quarter, the company had cash and investments in marketable securities totaling $10.5 billion.
In Friday’s announcement, Boeing’s President and Chief Executive Officer, Kelly Ortberg, said,
“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. 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.”
For Q3 2024, Boeing Commercial Airplanes expects to recognize pre-tax earnings charges of $3.0 billion on the 777X and 767 programs. The first delivery of the 777-9 has now been pushed to 2026, and the 777-8 Freighter to 2028, resulting in a pre-tax charge of $2.6 billion. The delivery schedule changes take into account updated certification timelines, 777-9 flights testing delays, and the impact of the IAM work stoppage. Boeing Commercial Airplanes also plans to conclude 767 Freighter production, recognizing a $0.4 billion pre-tax charge on the program, reflecting impacts from the IAM work stoppage. Starting 2027, the company will only produce the 767-2C aircraft in support of the KC-46A Tanker program.
I a separate announcement to Boeing employees on Friday (October 11, 2024), Boeing’s President and CEO, Kelly Ortberg, said in part,
“Our business is in a difficult position, and it is hard to overstate the challenges we face together. Beyond navigating our current environment, restoring our company requires tough decisions and we will have to make structural changes to ensure we can stay competitive and deliver for our customers over the long term.
“We need to be clear-eyed about the work we face and realistic about the time it will take to achieve key milestones on the path to recovery. We also need to focus our resources on performing and innovating in the areas that are core to who we are, rather than spreading ourselves across too many efforts that can often result in underperformance and underinvestment…”
Boeing has further announced that they will reduce their workforce by approximately 10 percent in the coming results, impacting around 17,000 team members, including executives, managers and employees. With this decision, the company will not proceed with the next cycle of planned furloughs.
Source: Boeing
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