Boeing reported a 2022 fourth quarter loss as elevated supply chain costs dragged down results despite a late-quarter uptick in plane deliveries
New York (AFP) - Boeing reported a fourth-quarter loss of $634 million on Wednesday as elevated operating and supply chain costs offset a December uptick in commercial plane deliveries.
The aviation giant, which has been beset in recent years with production problems and certification delays following the 737 MAX crashes, finished 2022 with positive free cashflow for the first time since 2018 as it reaffirmed 2023 targets.
Boeing’s revenues rose 35 percent to $20 billion, but came in below analyst forecasts.
“We had a solid fourth quarter, and 2022 proved to be an important year in our recovery,” said Boeing Chief Executive Dave Calhoun.
“Demand across our portfolio is strong, and we remain focused on driving stability in our operations and within the supply chain to meet our commitments in 2023 and beyond.”
Boeing has said it expects to return to a level of financial strength comparable to its pre-pandemic state around the 2025-26 timeframe.
The company’s turnaround has been aided by robust demand for commercial planes as airlines struggle to meet pent-up demand for flying and replace older planes with newer jets that burn less energy and release fewer carbon emissions.
But efforts to ramp up output have been hindered by snags in garnering key parts and materials, including delays in receiving engines from key suppliers.
Boeing has resumed deliveries of the 787 Dreamliner after a lengthy halt, and confirmed it would ramp up production in 2023 from the current “low” level.
The company expects to deliver 70-80 Dreamliners in 2023, up from 31 last year. Boeing is eyeing 737 deliveries of 400-450, compared with 387 in 2022.
Shares of Boeing fell 1.4 percent to $208,93 in pre-market trading.