Boeing Reports Preliminary Q4 Results, Estimates Significant Operating Cash Flow Loss
Key Financial Highlights:
* Revenue: $15.2 billion (vs. consensus estimate of $16.76 billion)
* GAAP loss per share: $5.46 (vs. estimated loss of $1.32)
* Operating cash flow loss estimated at $3.5 billion
* Pre-tax charges of $1.7 billion in defense and space business
Factors Impacting Performance:
* IAM work stoppage leading to higher labor costs and pre-tax charges of $1.1 billion
* Workforce reductions and changes to defense business
* Delivery of 57 planes in Q4, bringing total annual deliveries to 348 (down 33%)
Management Commentary:
"We face near-term challenges, but we took steps to stabilize our business, including reaching an agreement with IAM and raising capital," said Boeing CEO Kelly Ortberg. "Our team remains focused on building a new future for Boeing."
Stock Market Impact:
* Boeing shares fell 1% in after-hours trading after the preliminary results were announced.
Additional Details:
* IAM strike cost Boeing $1.1 billion in pre-tax charges.
* IAM members received a 38% pay increase over four years and other benefits.
* Boeing has laid off hundreds of workers in Washington and California as part of a planned 10% headcount reduction.
* Boeing's cash and investments stood at $26.3 billion at the end of Q4.
* The company recently announced a $19 billion share sale to boost cash reserves.