The following is a summary of the The Boeing Company (BA) Q4 2023 Earnings Call Transcript:
Financial Performance:
- Boeing’s Q4 revenue was $22 billion, up 10% year-over-year, driven by higher commercial volume and favorable mix.
- The company reported a core loss per share of $0.47, improved from the previous year due to better commercial volume, better mix, and lower abnormal costs.
- Free cash flow for the quarter was $3 billion, consistent with the prior year, primarily due to improved commercial deliveries and strong order activity.
- Boeing Commercial Airplanes booked 611 net orders, resulting in an inventory backlog valued at $441 billion, generating revenue of $10.5 billion, up 13%.
Business Progress:
- Boeing is addressing safety issues that led to the grounding of its 737 MAX 9 planes and is working with the NTSB and FAA during the ongoing investigation.
- Several steps to enhance quality control measures have been implemented, such as increased inspections, quality bulletins to suppliers, and appointments of expert quality advisors.
- Boeing has committed to total transparency to restore trust, acknowledging the need for ongoing pauses in production to ensure quality and safety, including a delay in 787 deliveries.
- Strong operational achievements were made on the 737, 777, and 787 key programs, leading towards the company’s long-term objectives.
- Boeing Global Services had a strong quarter with revenue of $4.8 billion, up 6% mainly due to favorable commercial volume and mix.
- Despite postponing the 2024 guidance, the company remains confident in maintaining consistent cash flow driven by their ongoing productive operations and business strategies.