Boeing's market cap, dividends, sales and earnings in 2020

  •   DEHOUI Lionel

Founded in 1916, Boeing is one of the first companies to produce aeroplanes internationally. Its business is focused on civil aviation, military aviation and space. In 2020, the group suffered from the impact of the Covid-19 health crisis on air traffic. Here are the detailed results unveiled by the manufacturer for the whole of this year and for the first three quarters of 2021.

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Boeing's market cap, dividends, sales and earnings in 2020
Image copyright: Greg Goebel - Flickr

Results for the fourth quarter of 2020

In the fourth quarter of 2020, the Boeing Group saw its business continue to decline. In the last three months of this year, the aircraft manufacturer posted sales of $15.3 billion. This is 15% less than the previous year. This decline reflects the drop in commercial aircraft deliveries and the decline in the company's service business.

This was mainly due to the impact of the coronavirus health crisis and production issues related to the 787 programme. However, this quarter's revenue slightly exceeded market expectations. The market was expecting $15.06 billion.

Between October and December 2020, the US aircraft manufacturer posted a net loss of $8.44 billion (or -$14.65 per share), compared with a shortfall of $1.01 billion (or -$1.79 per share) in Q4-2019. On an adjusted basis, the net loss per share was -$15.25.

This was larger than the market had expected. The market was expecting a loss of -1.64 dollars.

 

Global update on the group's activity in the 2020 financial year

Throughout 2020, the Covid-19 health crisis has had a heavy impact on air travel. The aircraft manufacturer Boeing was not spared from this situation. The pandemic has also had an impact on the company's performance during the year.

In the twelve months of the 2020 financial year, the group's turnover stood at 58.16 billion dollars. This was down 24% on the previous year. For the year as a whole, the company posted a net loss of $11.94 billion, the biggest loss in its history.

As a reminder, in 2019, the American aerospace giant recorded a record loss of €636 million. For their part, the company's cash and marketable securities are estimated at 25.6 billion dollars. As of 31 December 2020, the group had an order backlog of $363 billion.

 

First quarter 2021 results

In the first quarter of 2021, the Boeing Group experienced a drop in 787 deliveries and commercial services volume. However, this was partially offset by increased Boeing 737 deliveries. In the first three months of 2021, the company's revenue reached $15.22 billion, down 10% year-on-year.

Overall, this turnover is almost in line with market expectations. The market was expecting USD 15.24 billion. For the period January to March 2021, the aircraft manufacturer posted a net loss of 561 million euros (or -92 cents per share), compared with a loss of 641 million dollars (or -1.11 dollar per share) in Q1 2020.

In Q1 2021, cash and investments in marketable securities decreased to $21.9 billion. During this period, the company used $9.8 billion to refinance debt. It also increased its revolving credit facilities by USD 5.3 billion.

As a result, these facilities totalled $14.8 billion. Furthermore, at the end of March 2021, the aircraft manufacturer had an order book of $364 billion.

 

Back in the black in the second quarter of 2021

After spending a year and a half (six consecutive quarters) in the red, Boeing returned to profit in the second quarter of 2021. During this period, the group's activity has evolved, mainly thanks to the strong recovery in deliveries of the 737 MAX. As a reminder, the latter had been grounded for twenty months after two fatal accidents.

But since the end of December 2020, it has been authorised to start flying again in a progressive manner. Since then, the manufacturer has already delivered 130 aircraft of this model. In the three months to the end of the quarter, the company's revenues amounted to $17 billion, up 44% year-on-year.  

The Defence, Space and Security division's revenues increased by 4% in the quarter. The customer services division posted a 17% increase in revenue. Between April and June 2021, Boeing posted a net profit of $587 million, compared with a shortfall of $2.4 billion a year earlier.

Excluding special items, adjusted earnings per share were 40 cents. In Q2 2021, cash and marketable securities are estimated at $21.3 billion.

 

Third quarter 2021 performance

After returning to profit in the previous quarter, Boeing saw its accounts slip back into the red in Q3 2021. Between July and September, the aircraft manufacturer posted a net loss of $132 billion (or -19 cents per share), compared with a loss of $466 million (or -79 cents per share) a year earlier.

In contrast, revenue for the quarter increased by 8% to $15.28 billion. This performance was driven by the continued recovery in deliveries of the 737 Max. It was also driven by strong momentum in the Services business during the period.

 

About Boeing's dividend and market capitalization

Due to the health crisis that has heavily affected the aviation sector in 2020, the Boeing Group has suspended the payment of dividends to the company's shareholders for the time being. Therefore, no coupon has been paid for the fiscal year 2020.

In addition, Boeing reports a strong presence on the stock market. The company is listed on the NYSE (New York Stock Exchange). It is also included in the American S&P 500 index. As of November 2021, its market capitalisation is estimated to be over 100 billion dollars.

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