Boeing Co (NYSE:BA, ETR:BCO) expects a cash flow loss of $3.5 billion for the fourth quarter due to the impact of the International Association of Machinists (IAM) work stoppage and workforce reductions.
The airplane manufacturer reported preliminary fourth quarter results after markets closed on Thursday.
Boeing expects to report revenue of $15.2 billion for Q4, far below the $16.76 billion expected by Wall Street analysts.
It expects a loss per share of $5.46, worse than estimates of a loss per share of $1.32.
Commercial airplane revenue is expected to be $4.8 billion, with this segment set to pre-tax charges of $1.1 billion, primarily related to the 777X program due to increased labor costs stemming from a recent IAM agreement.
The company’s defense, space and security segment is expected to bring in $5.4 billion in revenue, recognizing approximately $1.7 billion in pre-tax charges across various programs, including significant costs for the KC-46A and T-7A initiatives.
"Although we face near-term challenges, we took important steps to stabilize our business during the quarter including reaching an agreement with our IAM-represented teammates and conducting a successful capital raise to improve our balance sheet," Boeing Kelly Ortberg CEO said in a statement.
"We also restarted 737, 767 and 777/777X production and our team remains focused on the hard work ahead to build a new future for Boeing."
Boeing will release its full fourth quarter earnings report on January 28.
The company’s shares slipped 0.5% to approximately $177.50 on Friday morning.