Boeing Reports Q4 Loss, Cites IAM Strike and Workforce Reductions
Key Metrics:
* Q4 operating cash flow loss of $3.5 billion
* Revenue: $15.2 billion (below consensus estimate of $16.76 billion)
* GAAP loss per share: $5.46 (more significant than estimated $1.32 loss)
* Pre-tax charges of $1.7 billion in defense and space business
Impact of IAM Strike:
* Strike led to higher labor costs, resulting in pre-tax charges of $1.1 billion
* Agreement with IAM resulted in 38% pay increase, increased 401(k) match, and lower health care premiums
Other Factors:
* Workforce reductions of 10%
* Delivery of 57 planes in Q4, including 36 737 MAX jets
* 348 commercial jets delivered in 2020, a 33% decline year-over-year
Company Outlook:
* Boeing remains focused on stabilizing its business and building a better future
* Company raised $19 billion in a share sale to boost cash reserves
* Fourth quarter and full-year results to be announced on January 28th
Market Reaction:
* Boeing shares declined 1% in pre-market trade