Boeing Reports Q4 Loss, Cites Impact of Strike and Workforce Reductions
Preliminary Results
* Operating cash flow loss of $3.5 billion due to IAM work stoppage, workforce reductions, and defense business changes
* Revenue of $15.2 billion, below consensus estimates of $16.76 billion
* GAAP loss per share of $5.46, exceeding estimated loss of $1.32
* Pre-tax charges of $1.7 billion in defense and space business
Stock Performance
* Boeing shares declined 1% in after-hours trading
Management Commentary
"While we face near-term challenges, we're taking steps to stabilize our business," said Kelly Ortberg, Boeing's president and CEO. "We've reached an IAM agreement, successfully raised capital, and restarted production of key aircraft."
IAM Strike Impact
* Four-year labor agreement concluded in November
* Labor costs increased, resulting in pre-tax charges of $1.1 billion for 777X and 767 programs
* Company raised IAM member pay by 38%, increased 401(k) match, and lowered healthcare premiums
Workforce Reductions
* Hundreds of workers laid off in Washington state and California
* Company previously announced 10% headcount reduction
Deliveries and Production
* Delivered 57 planes in Q4: 36 737 MAX, 15 787 Dreamliners, 3 767, and 3 777
* Delivered 348 commercial jets in 2022, a 33% decline year-over-year
Financial Health
* Cash and investments in marketable securities at $26.3 billion at end of Q4
* Company raised $19 billion through share sale to boost cash reserves