FX168 Financial News (North America) News Few companies are currently as bleak as Boeing (BA).Boeing -The stock price of this aviation giant has fallen 42%this year.Its most popular aircraft Boeing 737 MAX problem does not seem to be solved.
About 33,000 members of the International Machinery Division Association have stronded for more than a month, neither of the two sides conducted much negotiations, and there was no solution in the short term.
It seems that this is not enoughIndore Investment. The company announced the third quarter earnings in advance, and it is expected to lose $ 9.9 billion.The cash flow will be $ 1 billion.
The stock has fallen 42% so far in 2024, and closing up on Friday rose nearly 5% to $ 151.02, but it was before this heavy news hit.
In the early release of the third quarter financial report, Boeing said that it is expected to lose $ 9.97 per share in this quarter, $ 17.8 billion in revenue, and operating cash flow to $ 1.3 billion.
The revenue was originally scheduled to be on October 23.
In addition to the bad income forecast, it also stated that its latest version of the 777 jet aircraft 777-9 will be delivered in 2026, one year later than expected.
Once 29 aircraft are completed, Boeing will stop producing 767 for the commercial market.However, it will continue to produce aircraft aircraft versions.
The financial report will include $ 3 billion in commercial business income and $ 2 billion in military business income.
The company plans to cut 10%of the around 170,000 employees worldwide.About 66,000 are in Seattle.
Yes, this is, but there are more reasons.
Why do Boeing do this?Part of the reason is that the strike may cause a loss of $ 1 billion in the company every month.Well, to a large extent, because the company must maintain operation in some way.
Many airlines use Boeing products, including Southwest Airlines (Luv), Alaska Airlines (ALK) and Ryaay (Ryaay).
But the 737 MAX Yu Bo continued to trouble the company.On January 5, 2024, an emergency door plug burst from Alaska Airlines from Portland, Oregon.The plug was installed correctly in the factory.
In addition, the 737 MAX crash in 2018 and 2019 also killed 346 people in Indonesia and Ethiopia.These accidents caused global aircraft for 18 months.The problem is improper software design.
Analysts will evaluate Boeing before the opening of the stock on Monday, and the results may not be optimistic.So far, no one has made any opinions on the stock.Kolkata Investment
Before the financial crisis from 2008-2009, the stock performed well. Before the 2019 new crown epidemic stifled the tourism industry, it reached $ 440.Hyderabad Wealth Management
Isn’t Boeing just a temporary stockAgra Stock?
However, if investors think that the stock of a long -standing company like Boeing looks very cost -effective, the answer is "not yet."
This week, the stock will definitely fluctuate.Investors want to see the support at the bottom.To reach the bottom, the following elements may be required:
Workers and capital get along peacefully.The company and the new CEO Kelly Altberg and the IAM union need to find a way to solve the strike without Boeing bankruptcy.At present, the two sides have not negotiated.The union rejected the two contract offers of Boeing; the latest request to increase the salary of 30%within four years.The trade union hopes to raise a salary of 40%, restore the old pension plan, and improve work conditions.
Guarantee work in Pujit Bay.Boeing transferred the production of its 787 dream aircraft to Charliston, South Carolina, in part of the reason to get rid of the union.Boeing 737 was built in London, Washington State, where the place was manufactured by World War II bomber.
Consolidate the capital status of Boeing.The company may seek new capital through loans, stock issuance or both.Wells Fargo recently predicts that the company will issue $ 10 billion in stocks.
Get in peace with regulatory agencies.Government regulatory agencies have always wanted to transform the internal structure of Boeing passenger aircraft.Boeing requires a solution to allow it to carry out business, and it is strong enough to prevent crashes and door plugs from being blown.
Hetry with all people who prosecuted Boeing in 2018 and 2019.
Boeing strike is common
Boeing and its unions are used to fighting.Since 1948, there have been seven large -scale strikes in Boeing, and workers have stopped working for 140 daysMumbai Stock Exchange. The last strike occurred in 2008 and lasted 57 days.
Boeing has been the ingredient stock of the Dow Jones Industrial Average since 1987, but since the acquisition of competitors McDonald Dodglas in 1997, its performance has not been very good.
The new management vowed to operate a company like a business company, reduce pension plans, implement layoffs, and try to push the profit to an amazing level.
But the continuous war has an unexpected impact.It allows the Airbus Company (Eadsy) to dominate the commercial aircraft market.However, the stock price was also very weak, and this year fell 4.9%, down 22.5%from a high point of 171.6 on March 27.
Jaipur Investment