Boeing's year of turbulence in five charts
By Nathan Gomes
Oct 11 (Reuters) -Boeing BA.N 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 AIR.PA 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 .DJIA this year, after Intel Corp INTC.O.
IAM strikes at Boeing's Seattle/Wichita locations https://reut.rs/3XeFkXU
Boeing's free cash flow over the past six quarters https://reut.rs/4dKum36
Boeing and Airbus shares https://reut.rs/4dGzJPZ
Boeing and Airbus deliveries over the past year https://reut.rs/3Y0NYJJ
Boeing's debt level since 2023 https://reut.rs/3zRNAFo
Reporting by Nathan Gomes and Utkarsh Shetti in Bengaluru; Editing by Sriraj Kalluvila
Activos relacionados
Últimas noticias
Descargo de responsabilidades: Cada una de las entidades de XM Group proporciona un servicio de solo ejecución y acceso a nuestra plataforma de trading online, permitiendo a una persona ver o usar el contenido disponible en o a través del sitio web, sin intención de cambiarlo ni ampliarlo. Dicho acceso y uso están sujetos en todo momento a: (i) Términos y Condiciones; (ii) Advertencias de riesgo; y (iii) Descargo completo de responsabilidades. Por lo tanto, dicho contenido se proporciona exclusivamente como información general. En particular, por favor tenga en cuenta que, los contenidos de nuestra plataforma de trading online no son ni solicitud ni una oferta para entrar a realizar transacciones en los mercados financieros. Operar en cualquier mercado financiero implica un nivel de riesgo significativo para su capital.
Todo el material publicado en nuestra plataforma de trading online tiene únicamente fines educativos/informativos y no contiene –y no debe considerarse que contenga– asesoramiento ni recomendaciones financieras, tributarias o de inversión, ni un registro de nuestros precios de trading, ni una oferta ni solicitud de transacción con instrumentos financieros ni promociones financieras no solicitadas.
Cualquier contenido de terceros, así como el contenido preparado por XM, como por ejemplo opiniones, noticias, investigaciones, análisis, precios, otras informaciones o enlaces a sitios de terceros que figuran en este sitio web se proporcionan “tal cual”, como comentarios generales del mercado y no constituyen un asesoramiento en materia de inversión. En la medida en que cualquier contenido se interprete como investigación de inversión, usted debe tener en cuenta y aceptar que dicho contenido no fue concebido ni elaborado de acuerdo con los requisitos legales diseñados para promover la independencia en materia de investigación de inversiones y, por tanto, se considera como una comunicación comercial en virtud de las leyes y regulaciones pertinentes. Por favor, asegúrese de haber leído y comprendido nuestro Aviso sobre investigación de inversión no independiente y advertencia de riesgo en relación con la información anterior, al que se puede acceder aquí.