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Airplanes-helicopters. Boeing reports fourth quarter results

The data for business segment

The Boeing Company reported fourth-quarter revenue of $14.8 billion, reflecting higher commercial volume and lower defense revenue. GAAP loss per share of ($7.02) and core loss per share (non-GAAP) of ($7.69) reflect lower charges and higher commercial volume. Boeing recorded operating cash flow of $0.7 billion. 

Operating cash flow improved to $0.7 billion in the quarter, reflecting higher commercial volume, higher advance payments, and lower expenditures.

Cash and investments in marketable securities decreased to $16.2 billion, compared to $20.0 billion at the beginning of the quarter, primarily driven by debt repayment partially offset by operating cash flow. Debt was $58.1 billion, down from $62.4 billion at the beginning of the quarter due to the prepayment of a term loan and repayment of maturing debt.

Total company backlog at quarter-end was $377 billion.

Segment Results

Commercial Airplanes

Commercial Airplanes fourth-quarter revenue increased slightly to $4.8 billion primarily driven by higher 737 deliveries, partially offset by lower widebody deliveries and less favorable mix. Fourth-quarter operating margin was primarily driven by a charge on the 787 program.

The industry is continuing to make progress on the global safe return to service of the 737 MAX. In December, the Civil Aviation Administration of China issued an airworthiness directive outlining changes required for Chinese airlines to prepare their fleets to resume service. Since the FAA's approval to return the 737 MAX to operations in November 2020, over 300,000 revenue flights have been completed, and the reliability of the 737 MAX fleet remains above 99 percent (as of January 24, 2022). The 737 program is currently producing at a rate of 26 per month and continues to progress towards a production rate of 31 per month in early 2022. The company is evaluating the timing of further rate increases.

The company continues to perform rework on 787 airplanes in inventory and is engaged in detailed discussions with the FAA regarding required actions to resume deliveries. In the fourth quarter, the company determined that these activities will take longer than previously expected, resulting in further delays in customer delivery dates and associated customer considerations. Accordingly, Commercial Airplanes recorded a $3.5 billion pre-tax non-cash charge on the 787 program. The program is producing at a very low rate and will continue to do so until deliveries resume, with an expected gradual return to five per month over time. The company now anticipates 787 abnormal costs will increase to approximately $2 billion, with most being incurred by the end of 2023, including $285 million recorded in the quarter.

Commercial Airplanes secured orders for 164 B-737 MAX and 24 freighters and delivered 99 units during the quarter and backlog included over 4,200 airplanes valued at $297 billion.

Defense, Space & Security

Defense, Space & Security fourth-quarter revenue decreased to $5.9 billion and fourth-quarter operating margin decreased to (4.4) percent, primarily due to lower volume and less favorable performance across the portfolio, including a $402 million pre-tax charge on the KC-46A Tanker program.

During the quarter, DSS secured an award for six MH-47G Block II Chinook helicopters for the US Army Special Operations, a contract extension for Future Logistics Information Services for the UK Ministry of Defence, an award for modernization of Airborne Warning and Control System to the Royal Saudi Air Force, and contracts for proprietary space programs. Defense, Space & Security also completed the first carrier tests for the MQ-25 unmanned aerial tanker and started flight testing on the second uncrewed Loyal Wingman aircraft.

Backlog was $60 billion, of which 33 percent represents orders from customers outside the US.

Global Services

Global Services fourth-quarter revenue increased to $4.3 billion and 4Q operating margin increased to 9.3 percent primarily driven by higher commercial volume and favorable mix. Operating margin was negatively impacted by a $220 million inventory impairment.

During the quarter, GS secured a V-22 Performance Based Logistics contract for the US Marine Corps, was awarded a contract for F/A-18 Landing Gear Repair for the US Navy, and was selected to provide Apache training and support services to the UK Ministry of Defence. Global Services also delivered the 50th B-767/300 converted freighter.

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AVIONEWS - World Aeronautical Press Agency