Boeing's share price fell by as much as 10 per cent today, after the plane manufacturer reported a four per cent dip in revenue during the fourth quarter of 2015, although full-year revenue grew by six per cent.
In the last three months of last year, the group's revenues fell to $23.6bn (£16.6bn) from $24.5bn the year before. Full-year revenue however rose to $96.1bn from $90.1bn.
Earnings per share dropped by 31 per cent in the quarter, down to $1.60 from $2.31.
Why it's interesting
Boeing said the fourth quarter results reflected the previously announced $569m charge the company incurred due to its plans to slow production of the 747, a decision made "as a result of a slow recovery in the air cargo market".
The group expects to deliver 740 to 745 planes in 2016, down from a record 762 in 2015. It will also cut 747-8 output in response to weak demand.
Boeing also forecast 2016 core earnings will be between $8.15 and $8.35 per share, below the average analyst estimate of $9.43.
What Boeing said
“Our priorities for 2016 and beyond are to build on our existing strengths to deliver on current plans and commitments, and to stretch beyond them by accelerating progress on key enterprise growth and productivity initiatives, investing in our team, and creating more value and opportunity for our customers, shareholders and employees," said chief exec Dennis Muilenburg.
“With clear strategies and strong positions in our markets, a large and diverse order backlog worth nearly $500bn, and multiple additional production rate increases planned yet this decade, we are well positioned for profitable growth and higher cash flow as we move into our second century in business.”
Boeing investors are expecting turbulence as the company clips its wings and slashes production expectations.