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.

The four-year contract that Boeing and the International Association of Machinists and Aerospace Workers (IAMAW) agreed upon would see workers get a 25% pay rise over the course of the deal, lump sum payments, and a lower share of health care costs. The union previously wanted a 40% pay increase.

Additionally, Boeing has made a commitment to build its new plane, the successor to the 737 model, at its facilities in Washington state. However, the company is yet to unveil plans for additions to its fleet. 

“Negotiations are a give and take, and although there was no way to achieve success on every single item, we can honestly say that this proposal is the best contract we’ve negotiated in our history,” Jon Holden, president of IAM District 751, said in a statement.

However, the deal still needs to be passed by workers, who are scheduled to vote on September 12th. There will be two votes, one on whether to accept the contract and the other on whether to strike if the contract is rejected.

The news about the tentative agreement provided a boost to Boeing’s struggling stock, resulting in a 3.30% jump on Monday. At its close price of $162.91 per share, the stock still remains 35.29% down year-to-date.

The post Boeing Reaches Tentative Agreement With Union, Shares Rise 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.

The S&P 500 slipped by 0.3%, while the Dow Jones Industrial average fell by 0.2%. The tech-heavy Nasdaq Composite dropped by 0.6%, a marked difference from its record close during the previous session.

Both the S&P 500 and Nasdaq Composite have gained as much as 10% since the start of the year, with investors appearing to be cautiously awaiting the events that unfold during the shorter trading week given that markets will be closed for Good Friday. Investors are also tracking economic data as a means of gauging the Federal Reserve’s next moves with expectations of rate cuts later this year.

The post U.S. Stocks Pause as Boeing CEO Set to Depart appeared first on theprimarymarket.com.

According to Boeing, the problem is related to two fittings in aft fuselages for which Spirit AeroSystems used “non-standard” manufacturing procedures. The issue affects the 737 MAX units in production and in storage as well as some airliners already in use. However, the company notes that the latter can continue operating without any safety risks.

Boeing predicts that taking care of the issues will delay the production and delivery of new 737 MAX jetliners in the near future. The company delivered 111 737 MAXs in the first quarter and was hoping to deliver a total of 400 by the end of the year.

“We expect lower near-term 737 MAX deliveries while this required work is completed. We regret the impact that this issue will have on affected customers and are in contact with them concerning their delivery schedule,” Boeing said in a statement.

Boeing’s stock closed at $213.59 on Thursday before sliding to $203.97 per share in after-hours trading. The company’s shares have been almost 10 percent up year-to-date prior to the dip.

The post Boeing Stock Plunges Amid 737 MAX Production Issues appeared first on theprimarymarket.com.

According to Reuters, the price of the initial order is valued at around $37 billion. This would make it the fifth most-valued commercial order in history.

Saudi Arabian Airlines, now known as Saudia, is a state-owned airline that has been in business since 1945. According to available data, it currently has 151 planes in its fleet and travels to 101 destinations.

Riyadh Air, on the other hand, is the newly-formed airline and will be owned by Public Investment Fund, the country’s sovereign wealth fund. PIF has been diversifying its portfolio in recent years, establishing golf competition LIV, investing in electric vehicle company Lucid and buying Premier League club Newcastle United.

Riyadh Air intends to expand its business to serve more than 100 destinations by the end of the decade. The company nabbed Tony Douglas, former chief executive officer of Etihad Airways, as its CEO.

“This order for us today [from Boeing] is the kind of first major milestone that shows to everybody the scale of ambition that we’ve got,” Douglas told Yahoo Finance.

After the deal was announced, Boeing shares jumped almost two percent and closed at $207.28 per share on Tuesday. This represents a more than six percent jump in value year-to-date. 

The post Boeing Secures an Order for 78 Airplanes from Two Saudi Arabia Airlines appeared first on theprimarymarket.com.

The company stated on Thursday that it “discovered an analysis error by our supplier related to the 787 forward pressure bulkhead.” The bulkhead acts as a barrier between the pressurized interior cabin and the radome (or nose cone).

While Boeing pins the error on component supplier Spirit AeroSystems, the supplier refused to take immediate blame for the mishap, commenting that it is still too early to confirm whether it made an “analysis error’ on its part.

Some analysts believe that this latest setback should not necessarily result in the need to redesign any jets and that those that are already in operation will be able to continue to fly.

According to Boeing, the current bulkhead issue is not related to a previous quality problem concerning gaps around the forward pressure bulkhead. The previous issue, which was discovered in 2021, led to a delivery suspension until August 2022.

The post Boeing Shares Fall Following Delivery Halt appeared first on theprimarymarket.com.

“Our revenue and earnings were significantly impacted by losses on fixed-price development programs in our defense business, driven by higher estimated manufacturing and supply chain costs,” Boeing Chief Executive Dave Calhoun confirmed in a message to Boeing employees.

Despite such cost pressures, Boeing ramped up production of its narrowbody jets in an effort to maximize sales revenue, selling 112 jets in the third quarter compared to 85 jets during the same period in 2021. Such sales efforts resulted in the generation of a free cash flow of $2.9 billion in the quarter.

Although faced with the $2.8 billion hit, Boeing still projects that it will finish the year with a positive cash flow.

The post Boeing Announces $2.8 Billion Hit in Defence Business appeared first on theprimarymarket.com.

The company and the union held bargaining talks over the weekend, prompting Boing to make an improved offer. The workers are now set to vote on whether to accept the offer or reject it, with the voting scheduled for Wednesday.

“This new offer builds on our previous strong, highly competitive one and directly addresses the issues raised by our employees,” said Boeing in a statement. “We are hopeful they will vote yes on Wednesday.”

Most improvements are related to 401(k). The workers will now have the option to get a lump sum payment of $8,000 or have it deposited to the 401(k) plan.

While Boeing probably feels good about avoiding strikes for now, this doesn’t mean that they are in the clear. The workers could go against the recommendation of the union leadership and reject the contract offer, causing further headaches for the company.

Despite the potential risks ahead, investors continued to like Boeing shares. The company’s stock saw a 4.5% jump on Monday and is currently trading at $166.51 per share. This marks its highest price since late April.

The post Boeing Manages to Avoid Strike at 3 St. Louis Defense Locations 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.

The four-year contract that Boeing and the International Association of Machinists and Aerospace Workers (IAMAW) agreed upon would see workers get a 25% pay rise over the course of the deal, lump sum payments, and a lower share of health care costs. The union previously wanted a 40% pay increase.

Additionally, Boeing has made a commitment to build its new plane, the successor to the 737 model, at its facilities in Washington state. However, the company is yet to unveil plans for additions to its fleet. 

“Negotiations are a give and take, and although there was no way to achieve success on every single item, we can honestly say that this proposal is the best contract we’ve negotiated in our history,” Jon Holden, president of IAM District 751, said in a statement.

However, the deal still needs to be passed by workers, who are scheduled to vote on September 12th. There will be two votes, one on whether to accept the contract and the other on whether to strike if the contract is rejected.

The news about the tentative agreement provided a boost to Boeing’s struggling stock, resulting in a 3.30% jump on Monday. At its close price of $162.91 per share, the stock still remains 35.29% down year-to-date.

The post Boeing Reaches Tentative Agreement With Union, Shares Rise 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.

The S&P 500 slipped by 0.3%, while the Dow Jones Industrial average fell by 0.2%. The tech-heavy Nasdaq Composite dropped by 0.6%, a marked difference from its record close during the previous session.

Both the S&P 500 and Nasdaq Composite have gained as much as 10% since the start of the year, with investors appearing to be cautiously awaiting the events that unfold during the shorter trading week given that markets will be closed for Good Friday. Investors are also tracking economic data as a means of gauging the Federal Reserve’s next moves with expectations of rate cuts later this year.

The post U.S. Stocks Pause as Boeing CEO Set to Depart appeared first on theprimarymarket.com.

According to Boeing, the problem is related to two fittings in aft fuselages for which Spirit AeroSystems used “non-standard” manufacturing procedures. The issue affects the 737 MAX units in production and in storage as well as some airliners already in use. However, the company notes that the latter can continue operating without any safety risks.

Boeing predicts that taking care of the issues will delay the production and delivery of new 737 MAX jetliners in the near future. The company delivered 111 737 MAXs in the first quarter and was hoping to deliver a total of 400 by the end of the year.

“We expect lower near-term 737 MAX deliveries while this required work is completed. We regret the impact that this issue will have on affected customers and are in contact with them concerning their delivery schedule,” Boeing said in a statement.

Boeing’s stock closed at $213.59 on Thursday before sliding to $203.97 per share in after-hours trading. The company’s shares have been almost 10 percent up year-to-date prior to the dip.

The post Boeing Stock Plunges Amid 737 MAX Production Issues appeared first on theprimarymarket.com.

According to Reuters, the price of the initial order is valued at around $37 billion. This would make it the fifth most-valued commercial order in history.

Saudi Arabian Airlines, now known as Saudia, is a state-owned airline that has been in business since 1945. According to available data, it currently has 151 planes in its fleet and travels to 101 destinations.

Riyadh Air, on the other hand, is the newly-formed airline and will be owned by Public Investment Fund, the country’s sovereign wealth fund. PIF has been diversifying its portfolio in recent years, establishing golf competition LIV, investing in electric vehicle company Lucid and buying Premier League club Newcastle United.

Riyadh Air intends to expand its business to serve more than 100 destinations by the end of the decade. The company nabbed Tony Douglas, former chief executive officer of Etihad Airways, as its CEO.

“This order for us today [from Boeing] is the kind of first major milestone that shows to everybody the scale of ambition that we’ve got,” Douglas told Yahoo Finance.

After the deal was announced, Boeing shares jumped almost two percent and closed at $207.28 per share on Tuesday. This represents a more than six percent jump in value year-to-date. 

The post Boeing Secures an Order for 78 Airplanes from Two Saudi Arabia Airlines appeared first on theprimarymarket.com.

The company stated on Thursday that it “discovered an analysis error by our supplier related to the 787 forward pressure bulkhead.” The bulkhead acts as a barrier between the pressurized interior cabin and the radome (or nose cone).

While Boeing pins the error on component supplier Spirit AeroSystems, the supplier refused to take immediate blame for the mishap, commenting that it is still too early to confirm whether it made an “analysis error’ on its part.

Some analysts believe that this latest setback should not necessarily result in the need to redesign any jets and that those that are already in operation will be able to continue to fly.

According to Boeing, the current bulkhead issue is not related to a previous quality problem concerning gaps around the forward pressure bulkhead. The previous issue, which was discovered in 2021, led to a delivery suspension until August 2022.

The post Boeing Shares Fall Following Delivery Halt appeared first on theprimarymarket.com.

“Our revenue and earnings were significantly impacted by losses on fixed-price development programs in our defense business, driven by higher estimated manufacturing and supply chain costs,” Boeing Chief Executive Dave Calhoun confirmed in a message to Boeing employees.

Despite such cost pressures, Boeing ramped up production of its narrowbody jets in an effort to maximize sales revenue, selling 112 jets in the third quarter compared to 85 jets during the same period in 2021. Such sales efforts resulted in the generation of a free cash flow of $2.9 billion in the quarter.

Although faced with the $2.8 billion hit, Boeing still projects that it will finish the year with a positive cash flow.

The post Boeing Announces $2.8 Billion Hit in Defence Business appeared first on theprimarymarket.com.

The company and the union held bargaining talks over the weekend, prompting Boing to make an improved offer. The workers are now set to vote on whether to accept the offer or reject it, with the voting scheduled for Wednesday.

“This new offer builds on our previous strong, highly competitive one and directly addresses the issues raised by our employees,” said Boeing in a statement. “We are hopeful they will vote yes on Wednesday.”

Most improvements are related to 401(k). The workers will now have the option to get a lump sum payment of $8,000 or have it deposited to the 401(k) plan.

While Boeing probably feels good about avoiding strikes for now, this doesn’t mean that they are in the clear. The workers could go against the recommendation of the union leadership and reject the contract offer, causing further headaches for the company.

Despite the potential risks ahead, investors continued to like Boeing shares. The company’s stock saw a 4.5% jump on Monday and is currently trading at $166.51 per share. This marks its highest price since late April.

The post Boeing Manages to Avoid Strike at 3 St. Louis Defense Locations appeared first on theprimarymarket.com.