Boeing Posts Wider Loss Than Expected as It Awaits Union Vote on Ending Strike

Boeing (BA) reported third-quarter results below analysts’ estimates Wednesday as the company awaits the result of a machinists union vote on its latest contract proposal, which could end a five-week strike that halted production and led the company to cut costs.

The troubled plane manufacturer posted a net loss of $6.17 billion, or $9.97 per share, larger than the consensus loss of $5.49 billion, or $8.89 per share, projected by analysts polled by Visible Alpha.

Boeing generated $17.84 billion in revenue, below the $18.12 billion analysts expected and the $18.10 billion it posted a year ago. Wednesday’s results align with the preliminary figures Boeing released earlier this month, when it said it expected revenue of about $17.8 billion and a loss per share of $9.97.

“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,” Boeing Chief Executive Officer (CEO) Kelly Ortberg said. “Going forward, we will be focused on fundamentally changing the culture, stabilizing the business, and improving program execution, while setting the foundation for the future of Boeing.” 

Machinists Union To Vote on Latest Offer Wednesday

Boeing and the union representing its striking workers said over the weekend that they had come to a tentative agreement on a new contract, and the union subsequently said it would hold a vote on ratifying the deal Wednesday.

Shares of Boeing were down about 1% soon after the results were released. They also likely will be impacted by the result of the union vote later in the day.

Boeing Recently Announced Moves To Shore Up Finances

Last week, Being announced a number of cost-cutting moves, as Jefferies analysts estimated the strike is costing the company about $1.3 billion per month. Boeing said it planned to sell as much as $25 billion in debt or stock, and made a deal with banks to receive a $10 billion credit line, among other moves to shore up its finances.

The strike was the latest negative catalyst for Boeing stock in a year that has seen safety incidents, regulatory and law enforcement investigations, a CEO replacement, and disappointing quarterly results.