Under the terms of the four-year contract, the workers would get a 38% pay rise, representing an 8% improvement on Boeing’s last offer. Additionally, the airplane maker committed to a $12,000 payment either as a contribution to 401(k) plans or cash payout and increased 401(k) contributions.

The IAM recommended that the striking workers vote in favor of the agreement. The vote is set to take place on Monday.

“It is time for our Members to lock in these gains and confidently declare victory,” the IAM said in a statement. “We believe asking members to stay on strike longer wouldn’t be right as we have achieved so much success.”

Boeing CEO Kelly Ortberg described the strike as “difficult” but expressed optimism about the agreement.

“It’s time we all come back together and focus on rebuilding the business and delivering the world’s best airplanes. There are a lot of people depending on us, “Ortberg stated.

Boeing’s stock jumped on the news, rising by 3.54% on Friday to close at $154.59 per share. The stock remains 38.60% down year-to-date.

The post Boeing Reaches Tentative Agreement With Striking Workers appeared first on theprimarymarket.com.

Boeing reported revenue of $17.85 billion, representing a 1% year-over-year decline and missing the analysts’ estimates of $17.93 billion. The company’s adjusted loss per share came at $10.44 versus $3.62 in Q3 of 2023 and $10.34 expected.

The adjusted operating loss ballooned to $6 billion in the third quarter alone and has now surpassed $8 billion for the year. The losses have been largely attributed to the ongoing strike of 33,000 unionized workers on the West Coast who build 737 MAX, Boeing’s best-selling jet.

The company’s operating cash flow came at a loss of $1.34 billion compared to $22 million in the same period last year. Boeing expects to have a negative free cash flow for the better part of next year before improvement is seen in late 2025.

According to Kelly Ortberg, Boeing’s new CEO, the company now intends to assess its business and streamline some of its operations in an effort to achieve better efficiency.

“We’re going through a portfolio process right now to look at the overall portfolio and seeing what do we want to look like five years from now. That may include streamlining certain things,” Ortberg told CNBC in an interview.

Boeing’s stock saw a slight movement on Wednesday, dipping 1.68% to $157.25 per share. The company’s shares are now 37.54% down year-to-date.

The post Boeing Reports $6 Billion in Losses, Revenue Decline appeared first on theprimarymarket.com.

According to IAMAW’s statement, the talks “broke off,” and there is no date scheduled for their resume despite the union being “open” to them.

“Talks broke off, and we have no further dates scheduled at this time. We remain open to talks with the company, either direct or mediated,” said IAMAW.

Boeing also expressed willingness to continue negotiating.

“We remain committed to resetting our relationship with our represented employees and negotiating in good faith, and want to reach an agreement as soon as possible,” the airplane maker stated.

Boeing’s 33,000 workers from the Pacific Northwest region stopped working on September 13 after rejecting the latest proposal for a new collective deal. The move led to a halt in production of Boeing’s most popular models, 737 MAX and 777.

Since the strike began, Boeing and the union have been trying to find common ground but without much success. The main issue remains that Boeing’s offer of a 30% raise over four years and restoring performance bonuses is deemed unsatisfactory by the union. The workers are asking for a 40% pay rise and want their traditional pension plan, scrapped in 2014, restored.

The post Boeing’s Latest Talks With Striking Union Have “Broke Off” appeared first on theprimarymarket.com.

Colbert has been with the company since 2009 and served in his most recent role since 2022. During his time in charge, the defense, space, and security division has lost approximately $6 billion while facing a number of issues.

One of those issues was building a malfunctioning Starliner capsule for NASA, which carried astronauts to the International Space Station. The capsule experienced problems with thrusters and was deemed unsafe for astronauts’ return to Earth.

With Colbert out, Boeing Space and Defense chief operating officer Steve Parker will take over as the head of the unit. The company is believed to be already looking for an executive to fill out the role on a permanent basis.

“At this critical juncture, our priority is to restore the trust of our customers and meet the high standards they expect of us to enable their critical missions around the world. Working together, we can and will improve our performance and ensure we deliver on our commitments,” Ortberg wrote in an email sent out to staff.

Boeing is currently facing another crisis after more than 32,000 of its workers went on strike due to failure to agree to a new collective deal. The company is engaged in negotiations with the union, but the talks are not expected to end on a positive note anytime soon.

The post Boeing’s Chief of Defense, Space, and Security Leaves the Company appeared first on theprimarymarket.com.

The workers were presented with two votes on Thursday; the first vote was whether to accept a new deal that would come with a 25% pay increase over four years, and the second one was whether to go on strike. IAMAW announced that 94.6% of those who voted were in favor of rejecting the deal, while 96% approved the strike.

As a result, workers in Boeing’s factories in Washington, Oregon, and California, have walked out of their jobs on Friday morning.

“This is about fighting for our future,” said union representative Jon Holden.

Boeing, on the other hand, is looking to quickly resolve the issue that will bring to a halt the production of the company’s most popular jets.

“The message was clear that the tentative agreement we reached with IAM leadership was not acceptable to the members. We remain committed to resetting our relationship with our employees and the union,” Boeing said in a statement.

The strike reflected badly Boeing’s shares, which dropped by 3.67% on Friday. The stock is currently 37.72% down year-to-date.

The post Boeing Workers Go on Strike After Overwhelmingly Rejecting New Labor Deal appeared first on theprimarymarket.com.

In a note shared with clients on Tuesday, Wells Fargo’s analyst Matthew Akers said Boeing will need to address its $45 billion in net debt before developing its new aircraft. The process is expected to “consume its cash flow through 2030” and delay the targeted annual free cash flow of $10 billion by two years.

Back in 2022, Boeing said it aims to achieve an annual free cash flow target of $10 billion by 2025 or 2026.

Akers adds that there is also an increased possibility of Boeing offering additional shares, which would dilute the holdings of existing shareholders.

“A substantial further equity raise is needed in the coming years, further diluting shareholders,” Akers added.

Akers has now downgraded Boeing’s stock from equal-weight to “overweight” and placed a new price target of $119 per share.

Boeing’s shares dropped by more than 7% on Tuesday after the downgrade and closed at $161.02, being 35% down year-to-date. The stock would go on to slightly recover on Monday to trade around $165.09 per share.

The post Boeing Recover Slightly Following a Slide Amid Wells Fargo’s Downgrade appeared first on theprimarymarket.com.

Boeing announced the news on Wednesday, saying that Ortberg’s hiring was a result of a months-long extensive search process.

“The Board conducted a thorough and extensive search process over the last several months to select the next CEO of Boeing, and Kelly has the right skills and experience to lead Boeing in its next chapter,” said Boeing chairman Steven Mollenkopf in a statement.

The scope of the challenge Ortberg is facing was on full display following the release of Boeing’s earnings for the past quarter, which also came on Wednesday.

The airplane maker, which is battling production and safety issues, reported $16.9 billion in revenue compared to $17.46 billion estimated by analysts. Its earnings per share were also worse than expected, with the company recording a $2.90 adjusted loss per share versus estimates of a $1.82 adjusted loss per share.

Boeing’s recent troubles have also taken a toll on its deliveries. It delivered 92 planes in the second quarter, 44 fewer compared to the same period last year.

Despite disappointing earnings, Boeing’s stock surged by more than 4% on Wednesday. However, the company’s shares still remain 22% down year-to-date.

The post Struggling Airplane Maker Boeing Hires Kelly Ortberg as New CEO appeared first on theprimarymarket.com.

Sharing its 2024 Commercial Market Outlook (CMO) this week, Boeing said that it expects a 3% increase in airplane deliveries in the next 20 years.

The company now predicts it will ship 43,975 new jets during the period. Out of that number, 33,380 will be single-aisle planes, 8,065 will be widebody planes, 1,525 will be regional jets, and 1,005 will be freighters.

Boeing believes it will benefit from a growing travel demand, an increase in competition in the airline industry, and the need to replace older plane models. Half of the predicted deliveries will go towards increasing the fleet of airliners, while the other half will serve replacement needs.

“This is a challenging and inspiring era for aviation. The return to more typical traffic growth shows how resilient our industry is, even as we all work through ongoing supply chain and production constraints amid other global challenges,” Boeing’s senior vice president of Commercial Sales and Marketing Brad McMullen said.

Boeing is currently recovering from the crisis caused by the faulty design of its 737 MAX 9 model. The company is currently revamping its production and safety process.

The post Boeing Projects 3% Increase in Airplane Deliveries in the Next 20 Years appeared first on theprimarymarket.com.

Boeing faced an array of production issues after their planes were involved in a number of concerning incidents. The most recent happened in January, when a door plug blew out on a Boeing 737 Max 9 flying to Alaska.

These incidents brought heightened scrutiny to the company by U.S. aviation regulators. The company is now required to address a number of safety issues while also making broad changes to its manufacturing process. This resulted in the lowest delivery rate in years and mounting costs.

Boeing burned through $4 billion in cash in the first quarter of 2024 and expects to do the same in the second quarter as well.

“We have frustrated and disappointed our customers because of some of the production supply chain issues that we’re up against,” West said during appearance on Wolfe Research Global Transportation and Industrials Conference. “And while I understand that frustration, the most important thing we can do for our customers and the supply chain in the industry is to focus on the actions that are underway as we speak so that we could stabilize this production system, improve quality, and get more predictable.”

The post Boeing Expects to Burn Through Cash and Doesn’t See Improvements in Delivery in 2024 appeared first on theprimarymarket.com.

The company expects airlines to purchase 42,595 jets from now until 2042, thereby exceeding its previous 20-year forecast of 41,170 planes last year. This is still lower than the company’s projection of 43,610 jets in 2021 when Russian aircraft demand was included.

According to Boeing’s estimates, 32,420 of its narrowbody jets are expected to be sold through 2042, with the company predicting its 737 MAX to be particularly successful. In addition, the company expects to deliver 7,440 widebody planes, 1,810 regional jets, and 925 freighters.

Darren Hulst, Boeing’s vice president of commercial marketing, believes that demand will be driven by low-cost carriers looking to expand their fleet sizes.

“The end of the recovery has played out largely as we’ve expected, with a few different nuances and dynamics,” Hulst explained of the company’s performance during the post-pandemic travel industry boom. “I think we’ll again see how resilient the demand for air cargo is because it’s consistently around 3.5% to 4% growth,” he continued, airing his belief that air cargo demand will rise again following its ongoing growth hiatus.

The post Boeing Boosts Annual Outlook Amid Rising Demand appeared first on theprimarymarket.com.

Under the terms of the four-year contract, the workers would get a 38% pay rise, representing an 8% improvement on Boeing’s last offer. Additionally, the airplane maker committed to a $12,000 payment either as a contribution to 401(k) plans or cash payout and increased 401(k) contributions.

The IAM recommended that the striking workers vote in favor of the agreement. The vote is set to take place on Monday.

“It is time for our Members to lock in these gains and confidently declare victory,” the IAM said in a statement. “We believe asking members to stay on strike longer wouldn’t be right as we have achieved so much success.”

Boeing CEO Kelly Ortberg described the strike as “difficult” but expressed optimism about the agreement.

“It’s time we all come back together and focus on rebuilding the business and delivering the world’s best airplanes. There are a lot of people depending on us, “Ortberg stated.

Boeing’s stock jumped on the news, rising by 3.54% on Friday to close at $154.59 per share. The stock remains 38.60% down year-to-date.

The post Boeing Reaches Tentative Agreement With Striking Workers appeared first on theprimarymarket.com.

Boeing reported revenue of $17.85 billion, representing a 1% year-over-year decline and missing the analysts’ estimates of $17.93 billion. The company’s adjusted loss per share came at $10.44 versus $3.62 in Q3 of 2023 and $10.34 expected.

The adjusted operating loss ballooned to $6 billion in the third quarter alone and has now surpassed $8 billion for the year. The losses have been largely attributed to the ongoing strike of 33,000 unionized workers on the West Coast who build 737 MAX, Boeing’s best-selling jet.

The company’s operating cash flow came at a loss of $1.34 billion compared to $22 million in the same period last year. Boeing expects to have a negative free cash flow for the better part of next year before improvement is seen in late 2025.

According to Kelly Ortberg, Boeing’s new CEO, the company now intends to assess its business and streamline some of its operations in an effort to achieve better efficiency.

“We’re going through a portfolio process right now to look at the overall portfolio and seeing what do we want to look like five years from now. That may include streamlining certain things,” Ortberg told CNBC in an interview.

Boeing’s stock saw a slight movement on Wednesday, dipping 1.68% to $157.25 per share. The company’s shares are now 37.54% down year-to-date.

The post Boeing Reports $6 Billion in Losses, Revenue Decline appeared first on theprimarymarket.com.

According to IAMAW’s statement, the talks “broke off,” and there is no date scheduled for their resume despite the union being “open” to them.

“Talks broke off, and we have no further dates scheduled at this time. We remain open to talks with the company, either direct or mediated,” said IAMAW.

Boeing also expressed willingness to continue negotiating.

“We remain committed to resetting our relationship with our represented employees and negotiating in good faith, and want to reach an agreement as soon as possible,” the airplane maker stated.

Boeing’s 33,000 workers from the Pacific Northwest region stopped working on September 13 after rejecting the latest proposal for a new collective deal. The move led to a halt in production of Boeing’s most popular models, 737 MAX and 777.

Since the strike began, Boeing and the union have been trying to find common ground but without much success. The main issue remains that Boeing’s offer of a 30% raise over four years and restoring performance bonuses is deemed unsatisfactory by the union. The workers are asking for a 40% pay rise and want their traditional pension plan, scrapped in 2014, restored.

The post Boeing’s Latest Talks With Striking Union Have “Broke Off” appeared first on theprimarymarket.com.

Colbert has been with the company since 2009 and served in his most recent role since 2022. During his time in charge, the defense, space, and security division has lost approximately $6 billion while facing a number of issues.

One of those issues was building a malfunctioning Starliner capsule for NASA, which carried astronauts to the International Space Station. The capsule experienced problems with thrusters and was deemed unsafe for astronauts’ return to Earth.

With Colbert out, Boeing Space and Defense chief operating officer Steve Parker will take over as the head of the unit. The company is believed to be already looking for an executive to fill out the role on a permanent basis.

“At this critical juncture, our priority is to restore the trust of our customers and meet the high standards they expect of us to enable their critical missions around the world. Working together, we can and will improve our performance and ensure we deliver on our commitments,” Ortberg wrote in an email sent out to staff.

Boeing is currently facing another crisis after more than 32,000 of its workers went on strike due to failure to agree to a new collective deal. The company is engaged in negotiations with the union, but the talks are not expected to end on a positive note anytime soon.

The post Boeing’s Chief of Defense, Space, and Security Leaves the Company appeared first on theprimarymarket.com.

The workers were presented with two votes on Thursday; the first vote was whether to accept a new deal that would come with a 25% pay increase over four years, and the second one was whether to go on strike. IAMAW announced that 94.6% of those who voted were in favor of rejecting the deal, while 96% approved the strike.

As a result, workers in Boeing’s factories in Washington, Oregon, and California, have walked out of their jobs on Friday morning.

“This is about fighting for our future,” said union representative Jon Holden.

Boeing, on the other hand, is looking to quickly resolve the issue that will bring to a halt the production of the company’s most popular jets.

“The message was clear that the tentative agreement we reached with IAM leadership was not acceptable to the members. We remain committed to resetting our relationship with our employees and the union,” Boeing said in a statement.

The strike reflected badly Boeing’s shares, which dropped by 3.67% on Friday. The stock is currently 37.72% down year-to-date.

The post Boeing Workers Go on Strike After Overwhelmingly Rejecting New Labor Deal appeared first on theprimarymarket.com.

In a note shared with clients on Tuesday, Wells Fargo’s analyst Matthew Akers said Boeing will need to address its $45 billion in net debt before developing its new aircraft. The process is expected to “consume its cash flow through 2030” and delay the targeted annual free cash flow of $10 billion by two years.

Back in 2022, Boeing said it aims to achieve an annual free cash flow target of $10 billion by 2025 or 2026.

Akers adds that there is also an increased possibility of Boeing offering additional shares, which would dilute the holdings of existing shareholders.

“A substantial further equity raise is needed in the coming years, further diluting shareholders,” Akers added.

Akers has now downgraded Boeing’s stock from equal-weight to “overweight” and placed a new price target of $119 per share.

Boeing’s shares dropped by more than 7% on Tuesday after the downgrade and closed at $161.02, being 35% down year-to-date. The stock would go on to slightly recover on Monday to trade around $165.09 per share.

The post Boeing Recover Slightly Following a Slide Amid Wells Fargo’s Downgrade appeared first on theprimarymarket.com.

Boeing announced the news on Wednesday, saying that Ortberg’s hiring was a result of a months-long extensive search process.

“The Board conducted a thorough and extensive search process over the last several months to select the next CEO of Boeing, and Kelly has the right skills and experience to lead Boeing in its next chapter,” said Boeing chairman Steven Mollenkopf in a statement.

The scope of the challenge Ortberg is facing was on full display following the release of Boeing’s earnings for the past quarter, which also came on Wednesday.

The airplane maker, which is battling production and safety issues, reported $16.9 billion in revenue compared to $17.46 billion estimated by analysts. Its earnings per share were also worse than expected, with the company recording a $2.90 adjusted loss per share versus estimates of a $1.82 adjusted loss per share.

Boeing’s recent troubles have also taken a toll on its deliveries. It delivered 92 planes in the second quarter, 44 fewer compared to the same period last year.

Despite disappointing earnings, Boeing’s stock surged by more than 4% on Wednesday. However, the company’s shares still remain 22% down year-to-date.

The post Struggling Airplane Maker Boeing Hires Kelly Ortberg as New CEO appeared first on theprimarymarket.com.

Sharing its 2024 Commercial Market Outlook (CMO) this week, Boeing said that it expects a 3% increase in airplane deliveries in the next 20 years.

The company now predicts it will ship 43,975 new jets during the period. Out of that number, 33,380 will be single-aisle planes, 8,065 will be widebody planes, 1,525 will be regional jets, and 1,005 will be freighters.

Boeing believes it will benefit from a growing travel demand, an increase in competition in the airline industry, and the need to replace older plane models. Half of the predicted deliveries will go towards increasing the fleet of airliners, while the other half will serve replacement needs.

“This is a challenging and inspiring era for aviation. The return to more typical traffic growth shows how resilient our industry is, even as we all work through ongoing supply chain and production constraints amid other global challenges,” Boeing’s senior vice president of Commercial Sales and Marketing Brad McMullen said.

Boeing is currently recovering from the crisis caused by the faulty design of its 737 MAX 9 model. The company is currently revamping its production and safety process.

The post Boeing Projects 3% Increase in Airplane Deliveries in the Next 20 Years appeared first on theprimarymarket.com.

Boeing faced an array of production issues after their planes were involved in a number of concerning incidents. The most recent happened in January, when a door plug blew out on a Boeing 737 Max 9 flying to Alaska.

These incidents brought heightened scrutiny to the company by U.S. aviation regulators. The company is now required to address a number of safety issues while also making broad changes to its manufacturing process. This resulted in the lowest delivery rate in years and mounting costs.

Boeing burned through $4 billion in cash in the first quarter of 2024 and expects to do the same in the second quarter as well.

“We have frustrated and disappointed our customers because of some of the production supply chain issues that we’re up against,” West said during appearance on Wolfe Research Global Transportation and Industrials Conference. “And while I understand that frustration, the most important thing we can do for our customers and the supply chain in the industry is to focus on the actions that are underway as we speak so that we could stabilize this production system, improve quality, and get more predictable.”

The post Boeing Expects to Burn Through Cash and Doesn’t See Improvements in Delivery in 2024 appeared first on theprimarymarket.com.

The company expects airlines to purchase 42,595 jets from now until 2042, thereby exceeding its previous 20-year forecast of 41,170 planes last year. This is still lower than the company’s projection of 43,610 jets in 2021 when Russian aircraft demand was included.

According to Boeing’s estimates, 32,420 of its narrowbody jets are expected to be sold through 2042, with the company predicting its 737 MAX to be particularly successful. In addition, the company expects to deliver 7,440 widebody planes, 1,810 regional jets, and 925 freighters.

Darren Hulst, Boeing’s vice president of commercial marketing, believes that demand will be driven by low-cost carriers looking to expand their fleet sizes.

“The end of the recovery has played out largely as we’ve expected, with a few different nuances and dynamics,” Hulst explained of the company’s performance during the post-pandemic travel industry boom. “I think we’ll again see how resilient the demand for air cargo is because it’s consistently around 3.5% to 4% growth,” he continued, airing his belief that air cargo demand will rise again following its ongoing growth hiatus.

The post Boeing Boosts Annual Outlook Amid Rising Demand appeared first on theprimarymarket.com.