Boeing's Ongoing Efforts to Enhance Quality and Improve Financial Performance
2024-02-02
Boeing's fourth quarter 2023 earnings conference call took place recently, with key executives discussing important business matters. The conference call was attended by Dave Calhoun, Boeing's president and CEO; Brian West, Boeing's executive vice president and CFO; and Matt Welch, vice president of investor relations for The Boeing Company. The conference call was made accessible to the public through a broadcast and slide presentation on boeing.com.
During the conference call, Dave Calhoun emphasized Boeing's commitment to strengthening quality and regaining the trust of customers, regulators, and the flying public. This was particularly relevant in light of the grounding of the 737 MAX 9 airplanes. Boeing has implemented additional quality controls and inspections, issued bulletins to suppliers, and allowed direct oversight of their factories by 737 operators. Furthermore, an expert quality advisor has been appointed to conduct a comprehensive review of Boeing's commercial airplane quality management system.
The financial performance of Boeing was also discussed during the conference call. In the fourth quarter, Boeing generated $22 billion in revenue, but reported a core loss per share of $0.47. Within the commercial airplanes division, Boeing received 611 net orders and delivered 157 airplanes during the quarter. The operating margin for this division was 0.4%. The backlog for Boeing's commercial airplanes is currently valued at $441 billion.
The conference call also touched upon Boeing's defense and space business. The division has a backlog worth $59 billion and achieved a mid- to high-single-digit margin rate. The company aims to improve margins, particularly in the 25% of the portfolio that is specific and has a significant amount of activity, with the ultimate goal of reaching double-digit margins.
In addition to these topics, the conference call addressed the progress of the NTSB investigation into the Alaska Airlines Flight 1282 accident, Boeing's plans for future production rates, and the challenges and opportunities within the supply chain.
Overall, the conference call provided valuable insights into Boeing's ongoing efforts to enhance quality, improve financial performance, and tackle challenges across various aspects of the business.