Boeing (NYSE:BA) Reports Preliminary Fourth Quarter Results

Boeing (NYSE:BA) recently announced that it anticipates recognizing impacts on its financial results due to factors such as the International Association of Machinists and Aerospace Workers (IAM) work stoppage and agreement, charges related to certain Defense, Space & Security programs, and costs linked to the workforce reductions last year. The company is expected to reveal its fourth-quarter results on January 28, with an estimated revenue of $15.2 billion, a GAAP loss per share of ($5.46), and an operating cash flow of ($3.5) billion. Cash and investments in marketable securities stood at $26.3 billion at the quarter’s end.

Kelly Ortberg, President and CEO of Boeing, acknowledged the challenges faced and highlighted the steps taken during the quarter to stabilize the business. These steps included reaching an agreement with IAM-represented employees and executing a successful capital raise to improve the company’s balance sheet. Notably, production of 737, 767, and 777/777X models resumed during the quarter.

Commercial Airplanes results are expected to reflect the impacts of the IAM work stoppage and agreement, resulting in lower deliveries and pre-tax earnings charges of $1.1 billion on the 777X and 767 programs. The 777X program will incur a pre-tax charge of $0.9 billion due to higher estimated labor costs associated with finalizing the IAM agreement.

In the Defense, Space & Security segment, pre-tax earnings charges of $1.7 billion are anticipated on various programs, including the KC-46A, T-7A, Commercial Crew, VC-25B, and MQ-25 programs. The KC-46A program is expected to carry a pre-tax charge of $0.8 billion due to increased estimated manufacturing costs, including impacts of the IAM work stoppage and agreement.

Boeing issued caution concerning forward-looking statements, citing that preliminary estimates are subject to finalization and may change. The company’s preliminary financial results and statements revolve around a range of factors that could potentially influence actual outcomes, including economic conditions, government contracts, competition, and changes in regulations, among others.

Investors and stakeholders are advised to be cautious and aware of these uncertainties affecting Boeing’s financial performance. The company’s continued efforts to address the challenges faced during the quarter and its strategic plans for the future will be closely monitored by the market.

Boeing’s stock performance and investor sentiment may be influenced by the upcoming fourth-quarter report and the company’s ability to navigate through the issues highlighted in the preliminary results.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Boeing’s 8K filing here.

About Boeing

The Boeing Company, together with its subsidiaries, designs, develops, manufactures, sells, services, and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight and launch systems, and services worldwide. The company operates through Commercial Airplanes; Defense, Space & Security; and Global Services segments.