Boeing Reports Quarterly Loss, Cites Strike and Workforce Reductions
Seattle, WA - Boeing (NYSE: BA) announced preliminary fourth-quarter results on Thursday, revealing a significant operating cash flow loss of $3.5 billion. The loss stems primarily from the impact of the International Association of Machinists (IAM) work stoppage, workforce reductions, and adjustments to its defense business.
Key Details:
* Revenue: $15.2 billion (vs. consensus estimate of $16.76 billion)
* GAAP Loss Per Share: $5.46 (vs. estimated loss of $1.32)
* Pre-tax Charges in Defense and Space Business: $1.7 billion
Impact of IAM Strike:
The IAM strike, which concluded in November with a new four-year contract, has led to higher labor costs and pre-tax charges of $1.1 billion for the 777X and 767 jet programs.
Workforce Reductions:
In early December, Boeing laid off hundreds of workers in Washington state and California as part of its plan to reduce headcount by 10%.
Production Resumes:
Boeing has restarted production of 737, 767, and 777/777X aircraft, with the team focused on building a new future for the company.
Cash Position:
Boeing recorded $26.3 billion in cash and investments in marketable securities at the end of Q4. The company raised $19 billion in a share sale to boost its cash reserves.
Executive Commentary:
"Despite near-term challenges, we took important steps to stabilize our business," said Boeing President and CEO Kelly Ortberg. "We remain focused on the hard work ahead to build a new future for Boeing."