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 )