Boeing ( BA ) released third-quarter earnings on Wednesday morning, highlighting the planemaker’s risky nature ahead of another momentous event: a labor vote scheduled for later Wednesday.
Boeing announced 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 at $1.34 billion. The company reported revenues of about $17.8 billion, down about 1% from the same period last year. The numbers closely match preliminary numbers released last week.
Boeing said its operating cash flow reflects “decreased wide-body commercial aircraft deliveries, as well as unfavorable timing of working capital, including the impact of IAM downtime.” A year ago, Boeing’s operating cash flow was $22 million.
On the conference call, Boeing Chief Financial Officer Brian West said the company expects to burn more cash in the fourth quarter, and that the goal of delivering 37 737 MAX planes will be delayed. The company also said its financial and long-term outlook is under review.
Boeing stock fell 3% in early trading.
“This is a big ship that will take time to turn around, but when it does, it will have the potential to be great again,” Kelly Ortberg, the new CEO, said in a letter to employees about the results.
In its initial report last week, Boeing said it would end production of its 767 refueling plane and postpone the launch of its upcoming 777X wide-body jet. The company also said it would take $5 billion in pre-tax charges, with $3 billion coming from its commercial airline division and $2 billion coming from its defense business.
Boeing has also entered into an agreement To secure $10 billion In additional credit from a group of banks and filed a hybrid filing with the Securities and Exchange Commission to Offer up to $25 billion In new debt securities, common stock, preferred stock, and other equity offerings. the The Wall Street Journal reported that Boeing will seek a stock offering worth $10 billion The sources said via filing.
Boeing said it had $10.5 billion of cash and securities on hand at the end of the quarter. The company also said it has a total backlog of $511 billion, including more than 5,400 commercial aircraft.
The new credit agreement and debt and equity offers come as the company is mired in a labor dispute with its largest labor union, representing 30,000 workers.
Ortberg also announced that the company will lay off 10% of its workforce, or about 17,000 employees, across all divisions to shore up its financial position.
The layoffs, coming early next month, will occur as a labor dispute between Boeing and the International Association of Machinists (IAM) comes to a close. Boeing workers are scheduled to vote later Wednesday on whether to approve a new contract proposal.