Machinist strike and Pentagon projects sap manufacturer’s cash flow. Boeing lost roughly $4 billion in the most recent quarter, when the jet maker was hit by a debilitating strike, suffered mounting losses in troubled U.S. government projects and incurred costs tied to sweeping job cuts rolled out at the end of the year.
The manufacturing giant warned investors that it generated less revenue and racked up bigger losses than Wall Street anticipated. Thursday’s warning came before Boeing was scheduled to release its full results on Tuesday. Shares fell in after-hours trading.
The $4 billion expected loss includes big write-downs on money-losing projects for the Pentagon and in the company’s commercial jet business. Wall Street had expected Boeing to book a roughly $1 billion quarterly loss for the period.
Boeing said it expects to report revenue of $15.2 billion for the latest quarter, compared with Wall Street’s forecast of $16.6 billion. Its operations had negative cash flow of $3.5 billion in the December quarter, coming in slightly better than investors had feared.
Excerpt from WSJ
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