Boeing machinists went on strike after rejecting a 25% pay raise.That is shuttered the going manufacturing plant
Here are the main points from the Boeing CFO’s statement
Strike Impact: Strike will jeopardize recovery, impact production and deliveries
Cash Conservation: Laser-like focus on actions to conserve cash
Union Negotiations: Want to get back to the table and reach an agreement
Production Goals: Getting to 38/month by end of year will take longer
Inventory Levels: About 70 aircraft left in inventory at shadow factory
Supply Chain Constraints: Broadly impacting the industry, affecting deliveries
Specific Production Impacts:
787 deliveries below 5/month due to seat shortage
Lower 777 deliveries due to engine supply issues
Defense Unit: Q3 margins to be negative
Fitch is now out saying that if the strike is extended it could impact Boeings ratings (cut to junk status).
Shares are down -3.1% at $157.80. For the trading year, the stocks is down close to 40% on the year.
The consistently negative Boeing headlines takes the headline away from Intel. It’s shares are down nearly 61% on the year. The third worst performer of the Dow stocks is Nike down -27.6% in 2024
PS. Moody’s now joins Fitch on a downside credit watch.
This article was written by Greg Michalowski at www.forexlive.com.
