Boeing ( BA ) reported third-quarter earnings Wednesday morning, highlighting the planemaker’s precariousness ahead of another key event: a labor vote set for later Wednesday.
Boeing posted a net loss of $6.17 billion, bringing total losses so far in 2024 to nearly $8 billion. It said operating cash flow was negative $1.34 billion. The company reported revenue of about $17.8 billion, down 1% from the same period last year. The figures closely match the preliminary numbers it released last week.
Boeing said its operating cash flow reflected “unfavorable working capital timing, including lower commercial widebody deliveries and the impact of the IAM layoff.” A year ago, Boeing’s operating cash flow was $22 million.
In a conference call, Boeing CFO Brian West said the company expects to burn more cash in the fourth quarter and that the 37-plane delivery target for the 737 Max will be delayed. The company also said its financial projections and long-term outlook are under review.
Boeing shares fell 3% in early trading.
“It’s a great ship that will take some time to turn around, but when it does, it has the potential to be great again,” new CEO Kelly Ortberg said in a message to employees about the results.
In its preliminary report last week, Boeing said it would end production of its 767 tanker jet and push back the launch of its upcoming 777X widebody jet. The company also said it will take $5 billion in pre-tax charges, with $3 billion coming from its commercial aviation division and $2 billion from its defense business.
Boeing also signed a contract $10 billion to protect Additional credit from a consortium of banks and filed a mixed shelf filing with the SEC Offer up to $25 billion New debentures, common stock, preferred stock and other equity offerings. The The Wall Street Journal reported that Boeing would offer $10 billion in stock By filing, sources said.
Boeing said it had $10.5 billion in cash and bonds on hand at the end of the quarter. The company also reported a total outstanding of $511 billion covering more than 5,400 commercial aircraft.
The new debt deal and debt and equity offers come as the company is embroiled in a labor dispute with the largest union representing 30,000 workers.
Ortberg also announced that the company is laying off 10% of its workforce across all divisions, or about 17,000 employees, to shore up its financial position.
The layoffs will occur early next month as Boeing’s labor dispute with the International Association of Machinists (IAM) draws to a close. Boeing workers will vote later Wednesday on whether to approve the new contract proposal.
