Bulletin: Boeing Co. Lost $12 Billion In 2020; Cash Use Was Better Than Expected

WASHINGTON D.C. (S&P Global Ratings) Jan. 28, 2021--Boeing Co. (BBB-/Negative/A-3) reported a $12 billion net loss for 2020 because of the COVID-19 pandemic's effect on demand for new aircraft and related services, the 737 MAX being grounded until November 2020, quality issues with the 787, and charges totaling more than $10 billion. The charges include: $6.5 billion related to a delay in the entry into service of the 777X; $2.5 billion deferred tax valuation adjustment; $290 million inventory write-down in the aftermarket business; $275 million charge on the KC-46A aerial refueling tanker (bringing total charges on the program to about $5 billion); $468 million of abnormal MAX production costs; and The previously announced $744 million penalty related to the agreement

...January 28, 2021 WASHINGTON D.C. (S&P Global Ratings) Jan. 28, 2021--Boeing Co. (###-/Negative/A-3) reported a $12 billion net loss for 2020 because of the COVID-19 pandemic's effect on demand for new aircraft and related services, the 737 MAX being grounded until November 2020, quality issues with the 787, and charges totaling more than $10 billion. The charges include: - $6.5 billion related to a delay in the entry into service of the 777X; - $2.5 billion deferred tax valuation adjustment; - $290 million inventory write-down in the aftermarket business; - $275 million charge on the KC-46A aerial refueling tanker (bringing total charges on the program to about $5 billion); - $468 million of abnormal MAX production costs; and - The previously announced $744 million penalty related to the agreement with the U.S. Department of Justice (DoJ) regarding misleading the Federal Aviation Administration (FAA) during MAX development. However, free cash flow was a use of $18.7 billion, slightly better...

Bulletin