Boeing Tallies Strike Losses, 747-8 Effect
Boeing estimates that the two-month strike staged by its machinists late last year cost it some $2.5 billion in cash–the single biggest factor in the fourt

Boeing estimates that the two-month strike staged by its machinists late last year cost it some $2.5 billion in cash–the single biggest factor in the fourth-quarter net loss of $56 million the company reported this month. As a result of the strike, Boeing Commercial Airplanes delivered 105 fewer airplanes than expected, resulting in a $6.4 billion drop in revenues.

Boeing also took a “reach-forward” charge of $685 million in the fourth quarter due to “late maturity of the 747-8 design [that] drove substantial changes for supply partners,” said company CFO James Bell. In November Boeing announced a six- to nine-month delay for the 747-8 freighter, now scheduled for first delivery in the third quarter of 2010, and a three- to six-month delay of 747-8 Intercontinental passenger model, now scheduled to reach the market in the second quarter of 2011.