市場分析

Strikes and Layoffs Hit Boeing Hard with $3.5B Q4 Cash Flow Loss

Amos Simanungkalit · 24 Jan56.8K 閱讀

Image Credit: Reuters

Boeing (BA) announced preliminary fourth-quarter results, revealing an estimated $3.5 billion operating cash flow loss, primarily due to the International Association of Machinists (IAM) strike, workforce reductions, and adjustments in its defense business.

The company anticipates reporting $15.2 billion in revenue, below the consensus estimate of $16.76 billion, and a GAAP loss per share of $5.46 compared to the projected $1.32 loss. Additionally, Boeing expects $1.7 billion in pre-tax charges related to its defense and space operations.

"While we face short-term challenges, we made key progress in stabilizing our business during the quarter, including reaching an agreement with IAM and successfully raising capital to strengthen our balance sheet," said Boeing President and CEO Kelly Ortberg. He highlighted the resumption of 737, 767, and 777/777X production and emphasized the company’s commitment to rebuilding its future.

The eight-week IAM strike, which ended in November with a new four-year contract, is expected to increase labor costs, resulting in pre-tax charges of $1.1 billion for the 777X and 767 programs. The agreement with IAM members includes a 38% pay increase over four years, a combined $12,000 ratification bonus and lump sum payment, improved 401(k) matches, and reduced healthcare premiums.

In December, Boeing laid off hundreds of workers in Washington and California as part of its plan to cut its workforce by 10%. Earlier in the month, the company reported delivering 57 planes in Q4, including 36 737 MAX jets, 15 787 Dreamliners, and three each of the 767 and 777 models. For the year, Boeing delivered 348 commercial jets, a 33% decrease from the previous year.

In November, Boeing’s declining cash reserves threatened its investment-grade credit rating, prompting the company to initiate a $19 billion share sale to bolster liquidity. By the end of Q4, Boeing reported $26.3 billion in cash and investments in marketable securities.