Well, it couldn't happen to a better group of people.

Boeing Swings to Loss, Announces Jobs Cuts
Wednesday, January 28, 2009

Kathryn Elizabeth Tuggle
FOXBusiness

Boeing, (BA: 43.21, -0.01, -0.02%) the Chicago, Ill.-based airframe manufacturer, reported a fourth-quarter loss of $56 million and 10,000 job cuts on Wednesday.

On the company's earnings conference call, CEO Jim McNerney said that Boeing will cut 10,000 jobs, which is about 6% of the company's work force. That's more than twice as many cuts as the company announced earlier this month.

The company attributed the loss to a well-publicized 58-day strike by its machinists, which led to fewer airplane deliveries and further delays on its 747 jumbo jet.

Boeing’s $56 million loss translates to eight cents per share, which compares to a gain of $1.36 per share or $1.03 billion for the same quarter in 2007. Additionally, Boeing has adjusted its 2009 earnings forecast to $5.05 to $5.35 per share, down from guidance of $6.80 to $7 a share. Analysts had predicted an average of $5.75 per share for this year.

Because the strike delayed deliveries for many planes, Boeing’s quarterly sales dropped 27% to $12.68 billion from $17.48 billion the year prior. Overall deliveries for airplanes fell from 112 last year to just 50 this year, a severe blow to a company that gets half its earnings from the sale of commercial airplanes.

The company has also been hurt recently by lost contracts to rival Airbus, and additional unexpected costs on the completion of the new 787, including design changes and engineering delays. The company now estimates that the much-awaited "Dreamliner" that has now been delayed five times will not be delivered until 2010.

Other concerns for the company include the global slowdown of air traffic, both for passenger and cargo transport. This has led many to fear that Boeing and Airbus may see increased deferments for aircraft “on the books” expected to be constructed in the next five years. Also, the company announced plans earlier this month to slash 4,500 jobs in its commercial airplane division in an effort to cut costs.

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This line, contained within the article, says it all... "The company attributed the loss to a well-publicized 58-day strike by its machinists, which led to fewer airplane deliveries and further delays on its 747 jumbo jet."