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
면책조항: XM Group 회사는 체결 전용 서비스와 온라인 거래 플랫폼에 대한 접근을 제공하여, 개인이 웹사이트에서 또는 웹사이트를 통해 이용 가능한 콘텐츠를 보거나 사용할 수 있도록 허용합니다. 이에 대해 변경하거나 확장할 의도는 없습니다. 이러한 접근 및 사용에는 다음 사항이 항상 적용됩니다: (i) 이용 약관, (ii) 위험 경고, (iii) 완전 면책조항. 따라서, 이러한 콘텐츠는 일반적인 정보에 불과합니다. 특히, 온라인 거래 플랫폼의 콘텐츠는 금융 시장에서의 거래에 대한 권유나 제안이 아닙니다. 금융 시장에서의 거래는 자본에 상당한 위험을 수반합니다.
온라인 거래 플랫폼에 공개된 모든 자료는 교육/정보 목적으로만 제공되며, 금융, 투자세 또는 거래 조언 및 권고, 거래 가격 기록, 금융 상품 또는 원치 않는 금융 프로모션의 거래 제안 또는 권유를 포함하지 않으며, 포함해서도 안됩니다.
이 웹사이트에 포함된 모든 의견, 뉴스, 리서치, 분석, 가격, 기타 정보 또는 제3자 사이트에 대한 링크와 같이 XM이 준비하는 콘텐츠 뿐만 아니라, 제3자 콘텐츠는 일반 시장 논평으로서 "현재" 기준으로 제공되며, 투자 조언으로 여겨지지 않습니다. 모든 콘텐츠가 투자 리서치로 해석되는 경우, 투자 리서치의 독립성을 촉진하기 위해 고안된 법적 요건에 따라 콘텐츠가 의도되지 않았으며, 준비되지 않았다는 점을 인지하고 동의해야 합니다. 따라서, 관련 법률 및 규정에 따른 마케팅 커뮤니케이션이라고 간주됩니다. 여기에서 접근할 수 있는 앞서 언급한 정보에 대한 비독립 투자 리서치 및 위험 경고 알림을 읽고, 이해하시기 바랍니다.
