Aviation giant Boeing is showing some signs of recovery but remains mired in losses. The American company ended fiscal 2022 with a loss of $4.935 million (just over €4.5 billion at current exchange rates), making it the fourth straight year in the red. The company has been hit by the 737 Max crisis, the pandemic and the ruinous contract to manufacture the new US presidential plane, Air Force One, in recent years.
The company reported this Tuesday that its revenue rose 35% to $19,980 million in the fourth quarter of the year, in line with analysts’ forecasts. The company delivered 152 commercial jets this quarter, adding 376 to its order list. It thus closed 2022 with 480 deliveries and 808 net new orders, another year behind Europe’s Airbus, its great rival.
The increase in sales allowed it to reduce losses to $634 million in the fourth quarter, but for the full year it is in the red at $4,935 million compared to $4,202 million in 2021. The company has already posted losses of $11,873 million in 2020 and 636 million in 2019. In four years it has lost more than $20,000 million.
“We had a strong fourth quarter and 2022 proved to be an important year in our recovery,” Boeing chairman and CEO Dave Calhoun said in a statement. “Demand across our portfolio is strong and we remain focused on fostering resiliency across our operations and within the supply chain to meet our commitments in 2023 and beyond. We invest in our business, innovate and prioritize safety, quality and transparency in everything we do. While challenges remain, we are well positioned and on track to restore our operational and financial strength.”
The company has $57,000 million in debt, which is weighing heavily on its income statement in an environment of rising interest rates. The best news of the fourth quarter was operating cash flow generation of $3,457 million, nearly four times the prior-year quarter. Full-year operating cash flow was similar at $3,512 million, and for 2023 the company has reiterated its target of generating between $4,500 million and $6,500 million.
In fiscal 2022, Boeing’s accounts were hit with additional costs for losses in the Air Force One contract, cost overruns in the T-7A Red Hawk military training aircraft program due to inflationary pressures, the shortage in supplies, the Ukraine war and the Covid. Boeing was fined $200 million by the Securities and Exchange Commission (SEC) last September for misleading about the safety of the 737 Max.
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