Boeing shares dropped around 2 percent in U.S. pre-market trading on Thursday after workers voted to extend a nearly six-week strike, adding new uncertainty to the company’s financial recovery and image restoration efforts.
Price Movement
Boeing Company’s shares dropped almost 2 percent in U.S. pre-market trading, decreasing to $155.06 from the prior close of $157.06. The stock has declined over 40 percent year-to-date.
What happened
Boeing shares declined after workers extended a nearly six-week strike, adding new uncertainty to the company’s financial recovery efforts and tarnished reputation.
On Wednesday, 64 percent of West Coast factory workers rejected Boeing’s latest contract, which proposed a 35 percent wage increase over four years but lacked a defined benefit pension plan, a key demand.
This setback poses a challenge for new CEO Kelly Ortberg, who took charge in August with a commitment to strengthen relations with factory workers, as Boeing faces limited options and ongoing cash flow issues.
Agency Partners analyst Nick Cunningham remarked that Boeing will likely need to settle and make a higher offer, as the company is not in a position to continue the dispute.
Analysts indicated that the strike vote could affect Boeing’s refinancing efforts to stabilise its operations following recent challenges. Additionally, many suppliers are experiencing financial difficulties.
Last week, Boeing raised up to $25 billion to maintain its investment-grade rating and secured a $10 billion credit line.
Financials
In its latest financial update, the company reported impressive net sales of $17,840 million for the quarter ended September 2024, representing a 24 percent year-over-year increase from $18,104 million in the same quarter of 2023. However, earnings per share (EPS) fell to -9.97, compared to -2.70 during the same period last year.
Recent Developments
In October 2024, Boeing signed agreements to sell Digital Receiver Technology to Thales Defense & Security and secured an order from Emirates for five 777 freighters. Additionally, in June 2024, Boeing re-acquired Spirit AeroSystems for $4.7 billion after having previously spun it off.
Product Portfolio
Boeing’s extensive portfolio encompasses a wide range of offerings, including over 10,000 commercial jetliners currently in service worldwide.
In the defence sector, the company provides military aircraft such as fighters and bombers, along with missile systems and space systems, including satellites. Additionally, Boeing offers various services, including logistics support, maintenance services, training programs, and engineering support.
About the Company
The Boeing Company, an American multinational corporation, is a leading player in the aerospace industry, primarily engaged in designing, manufacturing, and selling aircraft, rotorcraft, rockets, satellites, and missiles.
Written by – Siddesh S Raskar
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
