The Chicago-based aircraft giant Boeing Co. (NYSE: BA) announced Wednedsay it will cut 10,000 jobs, about 6 per cent of its workforce. The announcement comes just after Boeing reported a net loss of $56 million and a statement regarding 2009 earnings predicted to be lower than expected.
Boeing Posts Quarterly Loss on Strike Impact and Charges
- Fourth-quarter revenues declined to $12.7 billion from $17.5 billion as labor strike pushed airplane deliveries out of the quarter
- Fourth-quarter EPS declined to loss of $0.08 per share, reduced by an estimated total of $1.79 due to strike, 747 charge and litigation-related reserve
- Backlog grew 8 percent in 2008 to a record $352 billion
- 2009 EPS guidance of $5.05 to $5.35 underpins a solid foundation in challenging times
“The progress we made in many areas of Boeing during 2008 was outweighed by the impact of the strike and our performance on some key development programs,” said Chairman, President, and Chief Executive Officer Jim McNerney. “Our imperative going forward is improving execution where it needs to be improved, maintaining strong performance across all our production programs, and preserving our financial strength to grow in these challenging economic times.”
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