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A Boeing 737 aircraft fuselage is pictured at the company’s Renton factory in Renton, Washington.
Boeing is preparing to announce its financial results prior to the market opening on Wednesday, with Wall Street anticipating a potential upswing amid ongoing challenges such as a trade war and various supply chain issues.
The company’s CEO, Kelly Ortberg, appointed last year to navigate Boeing through a tumultuous phase of safety and manufacturing dilemmas, is expected to share updates, particularly regarding the production of the popular 737 Max. Investors will be keenly interested in his projections for the upcoming year.
During the conference call expected on Wednesday, executives are likely to face inquiries about the impact of tariffs. Boeing finds itself entangled in President Donald Trump’s trade initiatives, which are anticipated to raise costs associated with aircraft and imported components.
In a strategic shift, Boeing has been re-evaluating its focus on core operations. Recently, the company disclosed plans to divest parts of its digital aviation segment to Thoma Bravo for $10.55 billion in an entirely cash transaction, which includes its Jeppesen navigation unit.
According to analysts surveyed by LSEG, expectations for Boeing’s first quarter results are as follows:
Loss per share: $1.29, adjusted
Revenue: $19.45 billion anticipated
On a related note, GE Aerospace’s CEO Larry Culp mentioned on Tuesday that he has conferred with President Trump about reinstating duty-free trade for the aerospace sector, an essential contributor to U.S. exports that assists in alleviating the trade deficit. GE, alongside RTX, projects that tariffs could impact their operations by over $1 billion combined this year.
In recent months, Ortberg has highlighted enhancements in safety and manufacturing practices at Boeing’s facilities as he strives to steer the company away from past incidents. Notable events include a January 2024 situation where a door plug detached from a fully loaded 737 Max during flight due to the absence of crucial bolts, although there were no serious injuries or fatalities reported.
Following that incident, Boeing must now seek clearance from the Federal Aviation Administration to elevate its 737 Max production rate above 38 jets per month. Production levels have lagged behind this target following the January mishap, compounded by a significant two-month strike that disrupted manufacturing last year.
Last week, Boeing disclosed the findings of an employee survey, revealing that only 27% of participants would strongly recommend the company as a workplace. Furthermore, only 67% expressed pride in their affiliation with Boeing, a noticeable decline from 91% in 2013. Additionally, less than half of respondents conveyed confidence in the senior leadership’s ability to effectively make decisions, guide the company, and address employee concerns.
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