Summary
Boeing Company (BA) reported a net loss of $3.5 billion for the nine months ended September 30, 2020, a significant decline from the $374 million net earnings in the prior year period. This downturn is primarily attributed to the severe impacts of the COVID-19 pandemic on air travel demand and the ongoing grounding of the 737 MAX aircraft. Total revenues decreased to $42.9 billion from $58.6 billion year-over-year, with the Commercial Airplanes segment being the hardest hit. The company has taken substantial measures to bolster liquidity, including issuing $25 billion in senior notes and drawing on a $13.8 billion term loan facility, leading to a significant increase in total debt to $61.0 billion. Despite these efforts, Boeing faces ongoing challenges related to production rate reductions, inventory build-up, and potential customer concessions. The company anticipates a multi-year recovery for commercial air travel, with global traffic not expected to return to 2019 levels for approximately three years.
Financial Highlights
52 data points| Revenue | $14.14B |
| Cost of Revenue | $13.11B |
| Gross Profit | $1.03B |
| R&D Expenses | $574.00M |
| Operating Income | -$401.00M |
| Net Income | -$449.00M |
| EPS (Basic) | $-0.79 |
| EPS (Diluted) | $-0.79 |
| Shares Outstanding (Basic) | 566.10M |
| Shares Outstanding (Diluted) | 566.10M |
Key Highlights
- 1Net loss of $3.5 billion for the first nine months of 2020, a substantial drop from a net profit of $374 million in the same period of 2019.
- 2Total revenues declined to $42.85 billion from $58.65 billion year-over-year, heavily impacted by reduced commercial aircraft deliveries.
- 3Commercial Airplanes segment reported a significant operating loss of $6.2 billion for the nine months ended September 30, 2020, compared to a loss of $3.8 billion in the prior year.
- 4Total debt increased substantially to $61.0 billion as of September 30, 2020, up from $27.3 billion at December 31, 2019, due to new debt issuances and borrowings to support liquidity.
- 5Cash used by operating activities was $14.4 billion for the nine months ended September 30, 2020, reflecting ongoing operational challenges and inventory build-up.
- 6Boeing has accrued a $6.0 billion liability for estimated future 737 MAX customer concessions and other considerations.
- 7Company expects a multi-year recovery for air travel, projecting a return to 2019 levels in approximately three years.