Boeing reported a massive loss of $6 billion in the third quarter, just hours before a labor vote on Wednesday. The company’s president and CEO, Kelly Ortberg, stated that it needs fundamental changes in its culture to return to the iconic brand it was for decades.
On Wednesday morning, the Arlington, Virginia, company reported revenue shortfall, massive losses, and cash burn for the quarter.
Revenue was $17.84 billion for the quarter, down from $18.104 billion a year ago.
Its net loss was $6.174 billion, compared with a $1.638 billion loss in the previous quarter. Generally accepted accounting principles (GAAP) losses were $9.97 per share, while free cash flow was negative $2 billion.
The third quarter losses are far worse than in the second quarter, when the company reported a GAAP loss per share of $2.33.
That was a consequence of the International Machinists and Aerospace Workers (IAM) strike, which slowed down aircraft production and previously announced charges on commercial and defense programs.
Members of the IAM were voting at union halls in the Seattle area and elsewhere on a contract that includes pay raises of 35 percent over four years. Their strike since mid-September has served as an early test for Boeing CEO Kelly Ortberg, who became chief executive in August.
In his first remarks to investors, Ortberg said Boeing needs “a fundamental culture change.”
“The trust in our company has eroded. We’re saddled with too much debt. We’ve had serious lapses in our performance across the company, which have disappointed many of our customers,” he said.
But Ortberg also highlighted the company’s strengths, including a backlog of airplane orders valued at a half-trillion dollars.
“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 said in a statement following the release of the company’s third-quarter financial results.
“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.”
Ortberg expressed hope that the 33,000 striking machinists in the Pacific Northwest would vote to approve the company’s latest contract offer. Their union district was expected to announce the results on Wednesday night.
Boeing’s stock price closed at $157.06 on Wednesday, down by 1.79 percent from the previous day.
The Associated Press contributed to this report.
From The Epoch Times