Boeing posts third annual loss in a row as Dreamliner prices hit $5.5 billion

Boeing a major milestone in its year-long 737 Max crisis deliveries jump helped generate cash in the fourth quarter for the first time in almost three years.

But now the company is facing mounting spending on its 787 Dreamliner program, which on Wednesday revealed $5.5 billion in costs related to manufacturing defects that have prevented Boeing from making these new ones over the past 15 months Handing over jets to customers.

Shares of the company fell more than 5% in afternoon trade, more than the broader market.

The manufacturer took a pre-tax charge of $3.5 billion for the Dreamliner in the fourth quarter. It expects an additional $2 billion in costs after cutting production of the planes, double its previous estimate.

“We can’t rush it”

Boeing first disclosed the flaws – tiny, improper clearances on some fuselages – in 2020. Defects were also found in other parts of some aircraft, and Boeing had to inspect the undelivered jets.

“While I don’t like any of the allegations, the progress has been significant,” CEO Dave Calhoun told CNBC.screeching in the streeton Wednesday about the 787. He declined to say when he expects regulators to grant approval and deliveries to resume. “We can’t rush it.”

Boeing reported free cash flow of $494 million for the fourth quarter, up from an outflow of $4.27 billion a year earlier, a milestone Boeing executives previously said they wouldn’t hit until 2022. It was spurred by a surge in 737 Max deliveries last year after regulators lifted bans on the jets following fatal crashes in 2018 and 2019.

China

China, a key customer for Boeing and the first country to ground the Max after the second crash, the last month was approaching lift its ban in the planes.

CFO Brian West told analysts on the quarterly conference call that shipments to China could resume “as early as the first quarter” of 2022, which could help the company generate more cash.

Here’s how Boeing compared to analyst estimates prepared by Refinitiv:

  • Adjusted Results: A loss of $7.69 per share versus an expected loss of 42 cents per share.
  • Revenue: $14.79 billion versus $16.59 billion expected.

Boeing lost $4.29 billion last year, its third consecutive annual loss Covid pandemic and production problems continued to affect the bottom line. That’s an improvement from 2020, when the company had a loss of $11.94 billion.

For the fourth quarter, Boeing reported a net loss of $4.16 billion, less than half the $8.44 billion it lost a year earlier. Revenue fell 3% year over year to $14.79 billion, down from $16.59 billion that analysts had expected.

‘renovation year’

“2021 was an important recovery year for us, and together we overcame significant hurdles,” Calhoun said in a note to employees on Wednesday. “While we still have work to do, I am confident that we are well positioned to accelerate our progress in 2022 and beyond.”

Chicago-based Boeing aircraft sales and deliveries increased last year, but deliveries of new planes to airlines still lagged behind European rival Airbus. The US company said it has increased production of the 737 Max to 26 a month, closer to the 31 a month it expects this year and up from the 19 a month it released in its last quarterly report.

But Boeing has been paralyzed for months by halting deliveries of its 787 Dreamliners for much of the past year due to a series of manufacturing defects that have left customers baffled American Airlines and Hawaiian Airlines.

American Airlines said last month it would be cutting its international flight schedule over 787 delivery delays. The airline’s CFO, Derek Kerr, said in an earnings call last week that Boeing is already paying penalties for the delays and “will compensate us for the losses” if there are more delays.

More delays

Kerr had said American expects to start deliveries of the Dreamliner again in mid-April, a timeframe Boeing CEO Calhoun did not confirm on Wednesday. “All I’m saying is that customers know everything we do,” Calhoun said, adding that airlines and Boeing “share the same regulator.”

“The company continues to perform follow-up work on 787 aircraft in inventory and is in detailed discussions with the FAA on the actions needed to resume deliveries,” Boeing said in a earnings release. “In the fourth quarter, the Company determined that these activities will take longer than previously anticipated, which will result in further delays in customer delivery dates and related customer considerations.”

CFO West referred to labor, material and supply chain shortages as “observation posts.”

Boeing’s large fleet of aircraft — 335 Max jets expected to be delivered by the end of 2023 — will provide a buffer, Calhoun said.

“When I think about the supply chain constraints that are out there, I hate that we got here this way, but having a stock of finished aircraft, particularly in relation to the Max, is at this moment beneficial,” Calhoun told CNBC.

recovery from travel

Calhoun said he expects the worst is behind the aviation sector after the pandemic crushed demand for air travel and new planes. Airline executives said in early January they expect international travel bookings to rebound this spring and summer after entry restrictions were lifted in recent months.

The company reiterated on Wednesday that it expects passenger traffic to return to 2019 levels next year or 2024.

Suppliers to Boeing and Airbus General Electric on Tuesday forecast a 20% increase in sales this year at its main aerospace division, which manufactures and repairs aircraft engines.

However, the recovery was bumpy. airlines incl delta, United and American earlier this month predicted the rapid spread of the Omicron variant, which began late last year delay a rebound travel demand by about two months. Executives at those airlines said they expect a strong spring and summer travel season.

On Tuesday, the Transportation Security Administration screened 1.06 million people, the fewest since April 2021.

David Beckham posts candy tribute to spouse Victoria to mark anniversary | Leisure

David Beckham thanked Victoria Beckham for “giving him her amazing kids” as he celebrated her 22nd birthday.

The former soccer star paid tribute to the singer and fashion designer of the Spice Girls with a sweet Instagram post on her milestone wedding day.

He wrote: “22 years later, still matching outfits… Happy Anniversary, I love you so much and thank you for giving me our great kids so we can all wear the same… @victoriabeckham… @brooklynbeckham @romeobeckham @cruzbeckham #HarperSeven (sic) “

While Victoria shared in her own post, “I love you David … Happy Anniversary (sic)”.

David and Victoria, who share Brooklyn, 22, Romeo, 18, Cruz, 16 and Harper Seven, 9, previously announced that they were “happy” to keep their family together during the COVID-19 lockdown, when her husband David Beckham had to go to Miami to work in his football club.

She said: “He has not been able to come to the club for over a year because of the ban.

“And he just said, ‘You know I have to stay, there is so much to do.’ He’s invested so much in this club. It has been his dream for as long as he can remember. The fact that he could be there physically, work with the team, work with the players, make the changes he needed to make, you You know, it was an amazing time for him. He really rolled up his sleeves. He was at the club every day. And I was just so happy that he could do that. But yeah, it was frustrating for him. There is only you can do so much of that remotely. That’s why we have decided that we will stay together and be there too. “

Jessica Simpson posts heartfelt tribute to Eric Johnson on social media | Leisure

Jessica Simpson celebrated 11 years with Eric Johnson through a heartfelt Instagram post.

The 40-year-old singer met Eric in May 2010, and the beloved duo that has Maxwell, nine, Ace, seven and Birdie, two tied the knot in Montecito, California in July 2014.

In addition to a black-and-white snapshot, Jessica wrote on the photo-sharing platform: “11 years of STARK … 11 hearts were filled every year with unconditional, passionate, inspired, fascinating, supportive, beautiful, tempting, adorable, exquisite, sublime , wonderful, honest, happy, adored, ideal, incomparable, powerful, mesmeric, LOVE. Our connected hearts are praised and celebrated on this random day. I knew that the night we met, the fate of you closed it has keys to my searching heart and just held my soul with love and honor. Then, now and for the rest of my life, I am wholly and always yours and you mine. (sic) “

Jessica described falling in love with Eric as the “greatest gift” of her life and her children as “perfect”.

The blonde beauty also wished her husband a happy anniversary in her heartfelt message.

Jessica, who was previously married to actor Nick Lachey between 2002 and 2006, wrote on Instagram: “It’s the greatest gift I’ll ever rest until the end of time to get access to your heart where I live Time flies, The perfect children you gave me are getting older, but with you and me there is no time because it only allows space to expand … to expand beyond the horizon just to love and be loved. Congratulations to us, the beauty of us is and forever. (sic) “

Sheriff’s Workplace posts tips about how you can spot counterfeit cash

The St. Landry Parish Sheriff’s Office has tips on how to spot counterfeit money after multiple complaints from local residents.

According to Sheriff Bobby Guidroz, these complaints are mostly coming from local truck stop casinos. The fake money was seen in all demonimations.

He says detectives work on several occasions where even the marker pen and counters don’t recognize them.

The sheriff’s office provided a few options to help residents spot fake bills:

FEEL THE BILL – Counterfeit money feels different to real cotton and linen money.
Look at the bill – there are embedded fibers of red and blue. Counterfeit money has no fibers, but some try to print the colors onto the paper. We all deal with money almost every day; Check the color of the bills. Often the forger does not match the colors.

CHECK for security features – in all denominations except $ 1 and $ 2. The easiest way to find a fake $ 5, 10, 20, 50, or 100 dollar bill is to look for the security features. Look for an embedded security thread (a strip of plastic) that runs from top to bottom. Hold the bill up to the light, you will see the strip and print on it. Holding the bill up to a light is another great way to look for a watermark. A watermark with the picture of the person whose portrait is on the bill is on all $ 10, $ 20, 50, and $ 100 bill lines from 1996 and on $ 5 bill lines from 1999.

Notify Authorities – Call your local law enforcement agency if you think you have a fake bill and are not putting yourself at risk.

Guidroz says anyone who receives counterfeit money cannot be reimbursed by law enforcement or a bank, but adds that if they are arrested, the courts can order a reimbursement.

See the Facebook post:

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