Boeing suffered a cash flow loss of $3.5 billion in the fourth quarter due to labor strikes and layoffs.

Boeing (BA) First reported the results of the fourth quarter After the call on Thursday, the IAM (International Association of Machinists) estimated a significant operating cash flow loss of $3.5 billion with the effects of layoffs, workforce cuts and changes in the defense business.

For the quarter, Boeing is expected to report revenue of $15.2 billion, compared to $16.76 billion, with a GAAP loss of $5.46 per share and a loss of $1.32 per share, according to Bloomberg. Boeing is also expected to pay a $1.7 billion pre-tax charge on defense and aerospace.

Boeing shares were down 1 percent in afternoon trading.

Boeing President Kelly Ortberg said: “Despite recent challenges, we took important steps to stabilize our business during the quarter, including reaching an IAM representation agreement with our group partners and a successful capital raise. “We have also restarted production of the 737, 767 and 777/777X, and our team is focused on the hard work ahead of us to build a new future for Boeing,” the CEO said.

Boeing said the IAM strike, which ended in November with a new four-year contract, will cost $1.1 billion before taxes for the 777X and 767 jet programs.

Following the eight-week strike, Boeing increased pay to IAM members by 38 percent over four years. It combines the previous $7,000 confirmation bonus with a $5,000 lump sum payment for a total of $12,000 into 401(k) plans or cash payments. increased the 401(k) match; And among other things, health care premiums are reduced.

In early December, Boeing He fired hundreds of workers Locations in Washington State and California. The company previously said it would reduce its headcount by 10 percent.

Earlier this month, Boeing reported that it had delivered 57 aircraft in the fourth quarter: 36 737 MAX jets, 15 787 Dreamliners, and three 767 and three 777 aircraft. For the year, Boeing said it delivered 348 commercial jets, down a third from a year earlier.

In the year In November, Boeing’s dwindling cash flow threatened the company’s investment grade credit rating, making it so. Announcement It has announced that it will start a $19 billion stock sale to raise cash reserves. Boeing said it had $26.3 billion in cash at the end of Q4 and investments in marketable securities.

Pras Subramanian is a Yahoo Finance reporter. You can follow it. X And on Instagram.

Click here for the latest stock market news and in-depth analysis, including events that move stocks

Read the latest financial and business news from Yahoo Finance