Boeing Company (BA)

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BA announces long list of accounting charges

"Results: Boeing reported a loss of $15.25 per share as it booked $8.3 billion in pre-tax charges. But it is unclear how it compares to analyst estimates. Revenue fell 15% to $15.3 billion due to several charges during the quarter.

The biggest hit was a $6.5 billion reach-forward loss on its 777X program. Boeing doesn't expect the first delivery of the new widebody until late 2023 vs. a 2022 timeline given in July, which was pushed back from 2021 and 2020. Management cited updated certification requirements and demand assessments, among other things. The production rate of the combined 777 and 777X line is still expected to stay at two per month this year.

Boeing also recorded a $468 million charge due to abnormal production costs with the 737 Max and a $275 million charge for the Air Force's KC-46 tanker due to "production inefficiencies including impacts of COVID-19 disruption." The tanker has cost Boeing billions in cost overruns.

The Q4 charges also included $744 million on a settlement with the Justice Department over the 737 Max and a $290 million charge in its Boeing Global Services unit.

Boeing announced earlier this month that commercial aircraft deliveries fell 25% to 59 in Q4. For all of 2020, deliveries fell to 157 from 380 in 2019 and 806 in 2018.

While deliveries have resumed, Boeing has said it doesn't expect to increase 737 Max production to 31 per month until the beginning of 2022, later than a prior estimate of 31 per month in 2021."

https://www.investors.com/news/boeing-stock-boeing-earnings-q4-2020-777x-delay-737-max/?src=A00220