Boeing sees $3.5B cash flow loss due to labor strikes and layoffs in the fourth quarter
Published On Jan 23, 2025, 5:28 PM
Boeing has reported a projected cash flow loss of $3.5 billion for the fourth quarter, primarily due to labor strikes and layoffs, alongside $1.7 billion in pre-tax charges related to its defense business. The company also expects revenues of $15.2 billion, falling short of the $16.76 billion consensus estimate. In response to these challenges, Boeing has made changes to stabilize the business, including a new labor contract that raises IAM members' pay by 38% over four years. The company delivered 57 planes in Q4 and is under pressure to maintain its investment-grade credit rating by bolstering its cash reserves, including a recent $19 billion share sale.
Stock Forecasts
BA
Negative
Boeing's substantial cash flow loss and disappointing revenue projections indicate significant operational challenges that could affect investor sentiment negatively. The ongoing labor costs and workforce reductions may hinder any near-term recovery, especially in a competitive aerospace market.
Related News
Stock futures inch lower, but major averages on track for second positive week in a row: Live updates
Jan 23, 2025, 6:02 PM
Optimism toward Trump's pro-business policies pushed risk assets higher this week after his inauguration.
Return-to-office policies are 'creeping up,' researcher says. Many workers would rather quit
Jan 23, 2025, 4:00 PM
More workers are being forced back to the office full time. Many say they'd rather quit.
The Yahoo Finance guide to Trump 2.0
Jan 20, 2025, 6:00 AM
New President Donald Trump promises dramatic change during his first year in office. Our comprehensive guide will help investors prepare for what's coming.