Boeing Reports Preliminary Q4 Results, Estimates Operating Cash Flow Loss

Boeing (BA) reported preliminary fourth quarter results on Thursday after market close, estimating a significant loss in operating cash flow due to the impact of the IAM work stoppage, workforce reductions, and changes in its defense business.

Key Metrics:

* Estimated operating cash flow loss: $3.5 billion
* Revenue: $15.2 billion (vs. $16.76 billion consensus estimates)
* GAAP loss per share: $5.46 (vs. estimated loss of $1.32)
* Pre-tax charges in defense and space business: $1.7 billion

Strike Impact and Cost:

The IAM strike, which concluded in November with a new four-year contract, is expected to result in higher labor costs and pre-tax charges totaling $1.1 billion for the 777X and 767 jet programs. Boeing increased IAM member pay by 38% over four years, offered various benefits, and lowered healthcare premiums.

Job Cuts and Production:

In early December, Boeing announced layoffs affecting hundreds of workers in Washington state and California, as part of its previously stated plan to reduce headcount by 10%. Despite these measures, Boeing restarted production of its 737, 767, and 777/777X aircraft.

Delivery Update:

For the fourth quarter, Boeing delivered 57 aircraft: 36 737 Max jets, 15 787 Dreamliners, three 767s, and three 777 jets. For the full year, Boeing delivered 348 commercial jets, a decline of one-third compared to the previous year.

Funding and Outlook:

In November, Boeing raised $19 billion through a share sale to boost its cash reserves and address a potential threat to its credit rating. At the end of Q4, Boeing's cash and investments in marketable securities stood at $26.3 billion.

Boeing will release its official fourth quarter and full-year results on January 28th before market open.