Boeing (BA) reported preliminary fourth quarter outcomes on Thursday after the bell, estimating a whopping $3.5 billion working money circulate loss because of the results of the IAM (Worldwide Affiliation of Machinists) work stoppage, alongside workforce reductions and modifications to its protection enterprise.
For the quarter, Boeing expects to report income of $15.2 billion versus $16.76 billion consensus estimates per Bloomberg on a GAAP loss per share of $5.46 versus a lack of $1.32 estimated. Boeing additionally expects to take pre-tax fees of $1.7 billion in its protection and house enterprise.
Boeing shares have been down 1% in after-hours commerce.
“Though we face near-term challenges, we took essential steps to stabilize our enterprise through the quarter together with reaching an settlement with our IAM-represented teammates and conducting a profitable capital elevate to enhance our steadiness sheet,” mentioned Kelly Ortberg, Boeing president and CEO. “We additionally restarted 737, 767 and 777/777X manufacturing and our workforce stays targeted on the laborious work forward to construct a brand new future for Boeing.”
Boeing mentioned the IAM strike, which concluded in November with a brand new four-year contract, will result in larger labor prices, leading to pre-tax fees of $1.1 billion for the 777X and 767 jet applications.
Following the eight-week strike, Boeing upped the pay of IAM members by 38% over 4 years; merged the prior $7,000 ratification bonus with a $5,000 lump sum fee for a complete $12,000 into 401(okay) plans or as a money payout; elevated its 401(Ok) match; and lowered well being care premiums, amongst different issues.
In early December Boeing laid off a whole bunch of employees at its base in Washington state and in California. The corporate had beforehand mentioned it might scale back its headcount by 10%.
Earlier this month Boeing reported that it delivered 57 planes within the fourth quarter: 36 737 MAX jets, 15 787 Dreamliners, and three 767 and three 777 jets. For the yr Boeing mentioned it delivered 348 business jets, down a 3rd in comparison with a yr in the past.
In November, Boeing’s dwindling money place threatened the corporate’s funding credit standing, which led to it saying that it might launch a $19 billion share sale to spice up money reserves. Boeing mentioned on the finish of This autumn money and investments in marketable securities stood at $26.3 billion.
Pras Subramanian is a reporter for Yahoo Finance. You may observe him on X and on Instagram.
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