Boeing Reports Preliminary Q4 Results Amid Labor, Defense Headwinds

Revenue: $15.2 billion (consensus: $16.76 billion)

GAAP Loss per Share: $5.46 (consensus: loss of $1.32)

Operating Cash Flow Loss: $3.5 billion

Key Factors:

* IAM (International Association of Machinists) work stoppage (pre-tax charges of $1.1 billion)
* Workforce reductions
* Defense business changes (pre-tax charges of $1.7 billion)

Management Commentary:

"We face near-term challenges but have taken steps to stabilize our business, including reaching an agreement with IAM members and conducting a successful capital raise," said Boeing CEO Kelly Ortberg.

Labor:

* IAM strike resulted in higher labor costs
* Pay increases for IAM members by 38% over four years
* Merger of ratification bonus with lump sum payment
* Increased 401(k) match
* Lowered health care premiums

Production:

* Restart of 737, 767, and 777/777X production

Deliveries:

* 57 planes delivered in Q4
* 348 commercial jets delivered in 2022 (down a third year-over-year)

Financing:

* $19 billion share sale to boost cash reserves
* Cash and investments in marketable securities at $26.3 billion at Q4 end

Outlook:

* Boeing to report Q4 and full-year results on January 28th before market open