Boeing has announced a projected $3.5 billion cash flow loss for the fourth quarter of 2024, primarily driven by ongoing labor strikes and layoffs. The company’s production has been significantly impacted by a six-week strike at its Washington state facilities, as well as a global workforce reduction of 10%.
This financial setback is compounded by a steeper-than-expected loss per share, with Boeing forecasting a loss of $5.46 per share, well above the anticipated $1.55 loss per share projected by Wall Street analysts. The company’s revenue also fell to $15.2 billion, down from $22 billion during the same period the previous year, and lower than the expected $16.6 billion.
In response to these challenges, Boeing has implemented cost-cutting measures and sought to bolster its financial position, including issuing nearly $19 billion in new shares in October 2024. Despite these efforts, Boeing’s stock has struggled, falling by 1.8% in the wake of the announcement, and has dropped 16% over the past year, compared to a 26% gain in the S&P 500 index.
The company’s ongoing financial struggles reflect broader issues in its production lines, as well as complications from troubled government contracts and delayed projects. Boeing is working to stabilize its operations as it faces a difficult road ahead in recovering from these setbacks.
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