Boeing faces over $6 billion loss in Q3 as key labor vote nears

Boeing (BA) announced its third-quarter earnings on Wednesday, revealing the challenging position the company is in ahead of an important labor vote scheduled for later that day.

Boeing reported a net loss of $6.17 billion, bringing total losses in 2024 so far to nearly $8 billion. It said operating cash flow was negative-$1.345 billion, News.Az reports, citing foreign media.

The company reported revenue of about $17.8 billion, down about 1% from the same period last year. The figures closely matched the preliminary numbers it released last week.

Boeing said its operating cash flow reflected "lower commercial widebody deliveries, as well as unfavorable working capital timing, including the impact of the IAM work stoppage." A year ago Boeing's operating cash flow stood at $22 million.

Shares were down slightly in premarket trading.

"This is a big ship that will take some time to turn, but when it does, it has the capacity to be great again," new CEO Kelly Ortberg said in a message to employees on the results.

In its preliminary report last week, Boeing it would end production of its 767 tanker jet and push back the release of its upcoming 777X widebody jet. The company also said it would a take $5 billion in pre-tax charges, with $3 billion coming from the commercial airlines division and $2 billion coming from its defense business.

Boeing also entered into an agreement to secure $10 billion in supplemental credit from a consortium of banks, and filed a mixed shelf registration with the SEC to offer up to $25 billion in new debt securities, common stock, preferred stock, and other share offerings. The Wall Street Journal reported Boeing would pursue a $10 billion stock offering via the filing, sources said.

Boeing said it had $10.5 billion in cash and securities on hand at the end of the quarter. The company also reported it had a total backlog of $511 billion, which included over 5,400 commercial airplanes.

News.Az