Boeing Reports Preliminary Q4 Results: Cash Flow Hit by Strike, Layoffs

Key Highlights:

* Operating cash flow loss estimated at $3.5 billion due to IAM strike, workforce reductions, and defense business changes
* Revenue projected at $15.2 billion, below consensus estimates of $16.76 billion
* GAAP loss per share expected to be $5.46, wider than the $1.32 estimated
* Pre-tax charges of $1.7 billion anticipated in defense and space business
* Boeing shares down 1% in after-hours trading

CEO Statement:

"Despite near-term challenges, we took steps to stabilize our business, including reaching an agreement with IAM and raising capital," said Boeing President and CEO Kelly Ortberg. "We also restarted key production lines and remain focused on building a new future."

Impact of IAM Strike:

* Higher labor costs leading to $1.1 billion in pre-tax charges for 777X and 767 programs
* Pay increases of 38% for IAM members over four years
* Merged bonuses and increased 401(k) match

Layoffs and Deliveries:

* Hundreds of layoffs in Washington and California
* 57 planes delivered in Q4, including 36 737 MAX jets
* 348 commercial jets delivered in 2022, down 33% year-over-year

Financial Position:

* Cash and investments in marketable securities at $26.3 billion
* $19 billion share sale announced in November to boost cash reserves