Boeing (BA) Reports Q4 Cash Flow Loss, Expects Q4 Loss
Boeing (BA) released preliminary Q4 results Thursday, estimating a $3.5 billion operating cash flow loss. This was impacted by the IAM work stoppage, workforce reductions, and changes in the defense business.
For the quarter, Boeing anticipates revenue of $15.2 billion, below consensus estimates of $16.76 billion per Bloomberg. It expects a GAAP loss per share of $5.46, wider than the $1.32 estimated loss. The company also anticipates $1.7 billion in pre-tax charges in its defense and space business.
Boeing shares declined 1% in after-hours trading.
"Despite near-term challenges, we took steps to stabilize our business," said Boeing President and CEO Kelly Ortberg. "We reached an agreement with IAM and conducted a capital raise to enhance our balance sheet."
The IAM strike, which concluded in November, will lead to higher labor costs of $1.1 billion for the 777X and 767 programs. Boeing raised IAM members' pay, increased its 401(k) match, and lowered health care premiums.
In December, Boeing laid off hundreds of employees in Washington state and California, as part of a 10% headcount reduction.
Boeing delivered 57 planes in Q4, including 36 737 MAX jets, 15 787 Dreamliners, and six wide-body aircraft. For the year, the company delivered 348 commercial jets, a 33% decline.
In November, Boeing announced a $19 billion share sale to boost cash reserves. At the end of Q4, the company had $26.3 billion in cash and marketable securities.