Sources close to the matter indicate that the deal is still not agreed upon, with finer details being hashed out. If the talks are successful, the agreement should be publicly announced at some point next week.

Boeing previously stated that it intends to re-acquire Spirit AeroSystems in an all-stock deal at some point in 2025. Boeing originally sold the manufacturer in 2005 as part of a $1.2 billion deal.

Spirit AeroSystems previously disclosed that it has liquidity issues and expects to burn through large amounts of money in the near future. It projects it will go through $450 million to $500 million in cash for the rest of 2024 and the first two quarters of 2025 alone.

Spirit AeroSystems manufactures fuselage for Boeing’s 737 and 787 models while also producing flight deck sections for the majority of Boeing’s jets. Additionally, Wichita, Kansas-based company supplies major components to European airplane maker Airbus.

Reportedly, Airbus is considering providing Spirit with cash support as well to avoid delivery delays for its A350 model.  

The post Boeing Close to Reaching a Funding Agreement With Struggling Supplier Spirit AeroSystems 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.

Spirit AeroSystems produces the fuselage, the main body section of an airplane, for Boeing’s 737 Max. The fuselage gets shipped to Boeing’s factory for assembly, but there are currently no workers on site who could do that job.

At the beginning of the strike, Spirit AeroSystems felt comfortable as it was behind the orders and used the downtime to catch up. However, the company feels that if no new orders keep coming after three weeks, it will become unfeasible to have all of its employees come to work, considering that more than 60% of its business relates to Boeing.

Boeing’s strike affected a lot of other businesses as airplane makers stopped making orders and told suppliers to halt the shipments of previously ordered parts.

Boeing workers represented by the District 751 chapter of the International Association of Machinists and Aerospace Workers (IAMAW) union opted to go on strike on September 13 after the company didn’t fulfill their demands. The two sides are still engaged in negotiations that would result in a new deal and return to work, with a new round of talks being scheduled for Friday. 

The post Spirit AeroSystems to Begin Furloughs in 3 Weeks if Boeing Strike Doesn’t End 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.

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.

In a recent LinkedIn post, United Airlines CEO Scott Kirby wrote that he has “renewed confidence” in Boeing’s recovery after a meeting with Ortberg.  United Airlines is Boeing’s biggest customer in the commercial flight sector and is currently waiting on the delivery of 484 planes.

“Earlier this week, I had lunch with Kelly Ortberg, newly appointed President, and CEO at Boeing, and was not only encouraged by what I heard, but I also came away with a renewed confidence that Boeing is on the right path and will recover faster than most expect,” Kirby wrote in the post.

Kirby also added that he believes Boeing will soon get back to “being one of the best and most important brands in the world” under Ortberg’s guidance.

Boeing recently faced a string of manufacturing and safety issues, including having its 737 Max 9 experience a door plug blowout during an Alaska Airlines flight. The incident forced the company to experience delays in production and left United Airlines and its other customers waiting for new planes a lot longer than expected.

The post United Airlines CEO Scott Kirby Says He Has “Renewed Confidence” in Boeing’s Recovery appeared first on theprimarymarket.com.

Sources close to the matter indicate that the deal is still not agreed upon, with finer details being hashed out. If the talks are successful, the agreement should be publicly announced at some point next week.

Boeing previously stated that it intends to re-acquire Spirit AeroSystems in an all-stock deal at some point in 2025. Boeing originally sold the manufacturer in 2005 as part of a $1.2 billion deal.

Spirit AeroSystems previously disclosed that it has liquidity issues and expects to burn through large amounts of money in the near future. It projects it will go through $450 million to $500 million in cash for the rest of 2024 and the first two quarters of 2025 alone.

Spirit AeroSystems manufactures fuselage for Boeing’s 737 and 787 models while also producing flight deck sections for the majority of Boeing’s jets. Additionally, Wichita, Kansas-based company supplies major components to European airplane maker Airbus.

Reportedly, Airbus is considering providing Spirit with cash support as well to avoid delivery delays for its A350 model.  

The post Boeing Close to Reaching a Funding Agreement With Struggling Supplier Spirit AeroSystems 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.

Spirit AeroSystems produces the fuselage, the main body section of an airplane, for Boeing’s 737 Max. The fuselage gets shipped to Boeing’s factory for assembly, but there are currently no workers on site who could do that job.

At the beginning of the strike, Spirit AeroSystems felt comfortable as it was behind the orders and used the downtime to catch up. However, the company feels that if no new orders keep coming after three weeks, it will become unfeasible to have all of its employees come to work, considering that more than 60% of its business relates to Boeing.

Boeing’s strike affected a lot of other businesses as airplane makers stopped making orders and told suppliers to halt the shipments of previously ordered parts.

Boeing workers represented by the District 751 chapter of the International Association of Machinists and Aerospace Workers (IAMAW) union opted to go on strike on September 13 after the company didn’t fulfill their demands. The two sides are still engaged in negotiations that would result in a new deal and return to work, with a new round of talks being scheduled for Friday. 

The post Spirit AeroSystems to Begin Furloughs in 3 Weeks if Boeing Strike Doesn’t End 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.

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.

In a recent LinkedIn post, United Airlines CEO Scott Kirby wrote that he has “renewed confidence” in Boeing’s recovery after a meeting with Ortberg.  United Airlines is Boeing’s biggest customer in the commercial flight sector and is currently waiting on the delivery of 484 planes.

“Earlier this week, I had lunch with Kelly Ortberg, newly appointed President, and CEO at Boeing, and was not only encouraged by what I heard, but I also came away with a renewed confidence that Boeing is on the right path and will recover faster than most expect,” Kirby wrote in the post.

Kirby also added that he believes Boeing will soon get back to “being one of the best and most important brands in the world” under Ortberg’s guidance.

Boeing recently faced a string of manufacturing and safety issues, including having its 737 Max 9 experience a door plug blowout during an Alaska Airlines flight. The incident forced the company to experience delays in production and left United Airlines and its other customers waiting for new planes a lot longer than expected.

The post United Airlines CEO Scott Kirby Says He Has “Renewed Confidence” in Boeing’s Recovery appeared first on theprimarymarket.com.