Staggering $6 Billion Loss Hits Boeing in Q3 2024 Amid Strike and Program Charges: Can the Aerospace Giant Bounce Back?
Boeing has reported a staggering $6 billion loss for the third quarter of 2024, primarily driven by the impact of a recent work stoppage and previously announced charges related to its commercial and defense programs. The company’s revenue for the quarter stood at $17.8 billion, a slight decline from $18.1 billion in the same period last year. This financial downturn reflects a significant operational loss, with a GAAP loss per share of $9.97 and a core loss per share of $10.44.
The financial strain comes as Boeing grapples with the ramifications of an ongoing strike by members of the International Association of Machinists and Aerospace Workers (IAM), who are currently voting on whether to accept a new contract offer. This strike has disrupted production schedules and delivery timelines, exacerbating Boeing's already challenging recovery from previous setbacks.
Boeing's President and CEO, Kelly Ortberg, acknowledged the difficulties ahead but expressed optimism about the company's future. "It will take time to return Boeing to its former legacy, but with the right focus and culture, we can be an iconic company and aerospace leader once again," he stated.
The company also reported an operating cash flow deficit of $1.3 billion for the quarter, attributing this to lower commercial widebody deliveries and unfavorable working capital timing linked to the IAM strike. Boeing’s total backlog remains robust at $511 billion, indicating strong future demand despite current challenges.
As striking workers consider their options, the outcome of their vote could significantly influence Boeing's operational stability moving forward. The situation remains fluid as both financial results and labor negotiations unfold.
