Boeing Reports Significant Operating Loss in Q4 Amid IAM Strike and Business Restructuring
Key Financial Metrics:
* Operating cash flow loss: Estimated $3.5 billion
* Revenue: $15.2 billion (below consensus estimate of $16.76 billion)
* GAAP loss per share: $5.46 (vs. estimated loss of $1.32)
* Pre-tax charges: $1.7 billion in defense and space business
Workplace and Business Impacts:
* IAM strike resulted in higher labor costs and $1.1 billion in pre-tax charges for 777X and 767 jet programs
* Workforce reductions of 10% and layoff of hundreds of workers
* Production restarted for 737, 767, and 777/777X aircraft
Capital Raise and Financial Position:
* $19 billion share sale launched to boost cash reserves
* Cash and investments in marketable securities at $26.3 billion at end of Q4
CEO Statement:
"We face near-term challenges, but have taken steps to stabilize our business, including reaching an agreement with IAM and raising capital to improve our balance sheet." - Kelly Ortberg, Boeing President and CEO
Outlook:
Boeing remains focused on building "a new future" for the company, emphasizing the importance of team effort and hard work.