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GRAPHIC-Boeing's year of turbulence in five charts
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GRAPHIC-Boeing's year of turbulence in five charts
Oct 11, 2024 7:16 AM

Oct 11 (Reuters) - Boeing ( BA ) has been mired in

crisis all year.

The year began with a mid-air panel blowout on a new 737 MAX

jet that exposed safety and quality problems; in March, then CEO

Dave Calhoun decided to step down, and now new chief executive

Kelly Ortberg is contending with an increasingly acrimonious

standoff with about 33,000 unionized workers.

Here are five charts that illustrate the deepening

challenges at the U.S. planemaker:

DELIVERIES

The U.S. planemaker has further ceded ground to arch-rival

Airbus in the delivery race this year as production

fell due to quality checks and audits by the aviation regulator.

Boeing ( BA ) had already slipped behind the European planemaker

this decade as overlapping crises hit production.

Deliveries are key for jet makers, as they get the majority

of payment when a plane is transferred to a customer.

Year-to-date, it has delivered a total of 291 airplanes vs

Airbus' 497.

CASH FLOW

The planemaker has burned through $8.3 billion in cash in

the first half of 2024 and expects free cash flow to be negative

this year.

S&P Global estimates Boeing's ( BA ) cash outflow will come to

about $10 billion in 2024, assuming that the strike ends in the

fourth quarter.

The company posted three consecutive years of negative cash

flow from 2019 to 2021 following a pair of crashes and during

the coronavirus pandemic.

Boeing ( BA ) has a forward 12 month price-to-earnings ratio of

214.7, compared to 18.8 for Airbus, according to LSEG data. A

high P/E ratio could mean the stock is overvalued.

DEBT

Boeing's ( BA ) debt currently stands at roughly $60 billion, with

more than $4 billion due in 2025.

The company had to borrow heavily to tide over overlapping

crises caused by a separate halt in production of MAX jets due

to the 2018 and 2019 crashes and the COVID-19 pandemic, which

hammered global air travel.

Earlier this year, Boeing ( BA ) tapped debt markets to raise $10

billion.

STRIKE

Workers at Boeing's ( BA ) factories in the U.S. Pacific Northwest

went on strike in September after rejecting a labor deal they

viewed as inadequate.

The lead negotiator for the union told Reuters on Wednesday

that members were prepared to wait out the planemaker after

talks collapsed.

According to TD Cowen, a 50-day strike could cost Boeing ( BA ) $3

billion to $3.5 billion of cash flow. The last strike at Boeing ( BA )

was in 2008 and lasted nearly two months.

SHARES

Shares are down more than 40% in 2024, due to a combination

of regulatory scrutiny, production issues and damage to Boeing's ( BA )

reputation.

The fall has erased approximately $60 billion in market

value. Shares climbed 36.8% in 2023, the only year they have

gained in value this decade.

The stock is the second-worst performer in the Dow Jones

Industrial Average this year, after Intel Corp. ( INTC )

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