BERKELEY — Boeing trimmed its net loss to $30 million for the fourth quarter, but logged worse margins than expected in its defense business.
And in a call with analysts Wednesday, officials spent much of their time responding to public and regulatory scrutiny of their commercial business, in the wake of an incident on a 737 Max 9 operated by Alaska Airlines, when a panel blew out midflight.
Chief Financial Officer Brian West said he expects margins to improve in the defense business, which is largely based in ºüÀêÊÓƵ County, especially in the fighter and satellite programs. The company has a goal of reaching high single-digit margins for the defense unit by the 2025 to 2026 time frame.
“They will eventually get to the point where we’re putting positives on the board,†West said.
The ºüÀêÊÓƵ region is home to Boeing’s second-largest workforce after Washington state. The company’s operations here are largely in defense products. Boeing makes the F-15 and F/A-18 fighter jets, the T-7A trainer, the MQ-25 refueling drone and munitions at sites in ºüÀêÊÓƵ County, St. Charles and Mascoutah.
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In the fourth quarter the company was awarded a U.S. Air Force contract for KC-46A Tankers, and delivered the first T-7A trainer craft to Edwards Air Force Base in November.
CEO Dave Calhoun, who was appointed to the role as the company struggled to rebuild trust in the wake of the fatal 2018 and 2019 737 MAX crashes, promised that the company is learning from the shortcomings exposed by the incident on the Alaska Airlines flight earlier this month. The company is adding scrutiny around the production of the door plug on the 737 MAX 9.
“Inspections will be added at every turn. It is on lockdown,†Calhoun said.
Boeing did not issue financial guidance for 2024. Calhoun said he understands that the current uncertainty around production schedules can frustrate customers and investors, but said the company will not get ahead of its regulators.
“Quality and safety must come above all else,†he said. “We will go slow to go fast,†he said.
The $30 million loss was an improvement from the $663 million loss in the same period the year prior. Boeing stock rose 6%, as of midday.