financetom
Business
financetom
/
Business
/
Boeing's year of turbulence in five charts
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Boeing's year of turbulence in five charts
Oct 11, 2024 7:16 AM

(Reuters) - Boeing 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 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 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 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 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 tapped debt markets to raise $10 billion.

STRIKE

Workers at Boeing's 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 $3 billion to $3.5 billion of cash flow. The last strike at Boeing 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 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.

(Reporting by Nathan Gomes and Utkarsh Shetti in Bengaluru; Editing by Sriraj Kalluvila)

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Meta backs data analytics firm Databricks as AI boom attracts investors
Meta backs data analytics firm Databricks as AI boom attracts investors
Jan 22, 2025
Jan 22 (Reuters) - Databricks said on Wednesday Meta Platforms had joined as an investor in a $10 billion funding round intended to fuel the data analytics startup's expansion plans and new product development. The Series J funding round closed on Wednesday and valued Databricks at $62 billion. The company also secured a $5.25 billion credit facility led by JPMorgan...
Market Chatter: Stellantis Outlines US Plant Investments
Market Chatter: Stellantis Outlines US Plant Investments
Jan 22, 2025
11:42 AM EST, 01/22/2025 (MT Newswires) -- Stellantis ( STLA ) plans to produce a new mid-size pickup at its plant in Belvidere, Illinois, returning around 1,500 employees represented by the United Auto Workers union to the facility, Bloomberg News reported Wednesday, citing an internal memo. The automaker also intends to proceed with plans to develop the next-generation Dodge Durango...
Texas ports begin resuming operations after winter storm
Texas ports begin resuming operations after winter storm
Jan 22, 2025
By Arathy Somasekhar and Marianna Parraga HOUSTON, Jan 22 (Reuters) - The ports of Freeport and Galveston resumed operations on Wednesday as winter storm Enzo moved away from Texas, while the port of Houston was planning to reopen to vessel traffic later in the day, according to a shipping notice seen by Reuters. The storm, which brought several inches of...
Capital One Posts Q4 Earnings Beat, Analysts Weigh In On Discover Acquisition
Capital One Posts Q4 Earnings Beat, Analysts Weigh In On Discover Acquisition
Jan 22, 2025
Capital One Financial Corp ( COF ) reported better-than-expected earnings for the fourth quarter. The company reported its quarterly results amid an exciting earnings season. Here are some key analyst takeaways. RBC Capital Markets analyst Jon Arfstrom reiterated a Sector Perform rating, while raising the price target from $180 to $200. Keefe, Bruyette & Woods analyst Sanjay Sakhrani maintained an...
Copyright 2023-2026 - www.financetom.com All Rights Reserved