Boeing Q4 Loss Widens Amid Strike, Defense Charges

Key Points

* Boeing (BA) estimates a $3.5 billion operating cash flow loss in Q4 due to work stoppage.
* Revenue forecast at $15.2 billion, below consensus.
* Defense and space business to incur $1.7 billion in pre-tax charges.
* Boeing shares fell 1% after-hours.
* Company layoffs and workforce reductions impact financial performance.
* Strike costs $1.1 billion, leading to labor cost increases.
* Boeing delivers 57 planes in Q4, down from same period last year.
* Cash position prompts $19 billion share sale to boost reserves.

CEO Statement

"We face challenges, but we stabilized our business with the IAM agreement and capital raise," said Boeing CEO Kelly Ortberg. "We're focused on building a new future."

Strike Impact

The eight-week IAM strike resulted in higher labor costs and pre-tax charges of $1.1 billion for the 777X and 767 programs.

Layoffs and Headcount Reduction

Boeing laid off hundreds of workers in Washington state and California. The company aims to reduce headcount by 10%.

Production and Deliveries

Boeing resumed production of 737, 767, and 777/777X models. The company delivered 57 planes in Q4 and 348 commercial jets for the year, down 33% year-over-year.

Cash Position

Boeing raised $19 billion through a share sale to strengthen its cash reserves.