CHICAGO, Jan. 27, 2021 /PRNewswire/ —
Fourth Quarter 2020
- Financial results significantly impacted by COVID-19, 737 MAX grounding, and commercial widebody programs
- 777X program recorded $6.5 billion pre-tax charge; first delivery expected in late 2023
- 737 MAX began receiving regulatory approval to resume operations and restarted deliveries
- Revenue of $15.3 billion, GAAP loss per share of ($14.65) and core (non-GAAP)* loss per share of ($15.25)
Full-Year 2020
- Revenue of $58.2 billion, GAAP loss per share of ($20.88) and core (non-GAAP)* loss per share of ($23.25)
- Operating cash flow of ($18.4) billion; cash and marketable securities of $25.6 billion
- Total backlog of $363 billion, including more than 4,000 commercial airplanes
- Strengthening safety processes, improving performance, managing liquidity and transforming for the future
- The Boeing Company [NYSE: BA] reported fourth-quarter revenue of $15.3 billion, reflecting lower commercial deliveries and services volume primarily due to COVID-19 as well as 787 production issues, partially offset by a lower 737 MAX customer considerations charge in the quarter compared to the same period last year (Table 1). GAAP loss per share of ($14.65) and core loss per share (non-GAAP)* of ($15.25) reflected a $6.5 billion pre-tax charge on the 777X program and a tax valuation allowance, partially offset by a lower 737 MAX customer considerations charge. Boeing recorded operating cash flow of ($4.0) billion.
- The return to service of the 737 MAX in the U.S. and several other markets was an important step, and Boeing continues to follow the lead of global regulators and support its customers. Since the FAA’s approval to return to operations, Boeing has delivered over 40 737 MAX aircraft and five airlines have safely returned their fleets to service as of January 25, 2021, safely flying more than 2,700 revenue flights and approximately 5,500 flight hours.Boeing now anticipates that the first 777X delivery will occur in late 2023. This schedule, and the associated financial impact, reflect a number of factors, including an updated assessment of global certification requirements, the company’s latest assessment of COVID-19 impacts on market demand, and discussions with its customers with respect to aircraft delivery timing.The company continues to progress through its business transformation effort across five key areas including its infrastructure footprint, overhead and organizational structure, portfolio and investment mix, supply chain health and operational excellence. Boeing will continue these actions in 2021 to preserve liquidity, adapt to the new market, improve performance, sustain key investments and transform its business to be more productive, resilient and competitive for the long term.
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Boeing CEO Updates Employees on Fourth-Quarter Results
CHICAGO, Jan. 27, 2021—Boeing President and CEO Dave Calhoun shared the following message with employees today addressing the company’s fourth-quarter results:
ADVERTISEMENT2020 was a year of profound societal and global disruption, which significantly impacted our industry. In the face of these challenges, we made important strides to strengthen our safety processes, rebuild trust, and transform our business to prepare for a robust recovery.
This morning, we shared our fourth-quarter and 2020 year-end financial results. The deep impacts of COVID-19 on commercial air travel, as well as the 737 MAX grounding, are reflected in our performance. Our balanced portfolio of diverse defense, space and services programs continues to provide important stability for us as we lay the foundation for commercial market recovery.
I’m extremely proud of the hard work and dedication of our team around the world, and I remain confident in our future. As we transform our business, we continue taking proactive action to reshape our infrastructure, streamline our overhead and organizational structure, rebalance our portfolio and investment mix, strengthen the health of our supply chain, and drive operational excellence into every corner of our enterprise. Working together, we’ll drive fundamental, enduring change at our company to strengthen our culture, improve our performance, and ensure we’re more resilient, productive and competitive for the long term.
As part of our fourth-quarter results, we also shared that we now anticipate that the first 777X delivery will occur in late 2023. This schedule, and the associated financial impact, reflects a number of factors, including an updated assessment of global certification requirements, our latest assessment of COVID-19 impacts on market demand, and discussions with customers with respect to aircraft delivery timing. We remain confident in the 777X and the unmatched capabilities and value it will offer our customers.
This past quarter, we also launched comprehensive production inspections of our 787 airplanes to ensure that each meets our rigorous engineering specifications prior to delivery, as we also drive stability in our production system to be better positioned for market recovery. While this limited our deliveries and revenue for the quarter, it is the right thing to do for our customers and another demonstration of our uncompromising commitment to quality.
We also began to receive regulatory approvals to resume 737 MAX operations in the fourth quarter and restarted deliveries in December of last year. As we focus on supporting our customers in safely returning their fleets to service, we are pleased with the confidence our customers have placed in us and the airplane, highlighted recently by the Ryanair and Alaska Air announcements.
We also continued to deliver for our defense and space customers. We delivered 34 aircraft to our defense customers this quarter and booked $5 billion in orders across key franchise programs. We also celebrated the first flight of the MQ-25 unmanned aircraft with an aerial refueling store and demonstrated ski-jump launch capability of the F/A-18 Super Hornet for the Indian Navy.
Our Global Services team provided essential support across the portfolio and earned record orders in the quarter driven by key government awards, including a performance-based logistics contract for the Singapore F-15SG fleet, and an F-15 spares and logistics support contract with the Qatar Emiri Air Force. Our digital solutions continue to provide important capabilities to our customers, as highlighted by Frontier Airlines’ recent decision to sign a 10-year digital services agreement with us for their fleet.
These accomplishments are encouraging signs that we are progressing on our journey of excellence, guided by our values and commitment to safety, quality, integrity and transparency in everything we do. Thank you for your dedication, resilience and hard work in 2020, and for your continued efforts on behalf of our customers, our communities and our company. Transforming our company to be stronger, more efficient and more innovative is critical to our future, and I am confident that we are up to the task.
