Industrials

Boeing Company (NYSE:BA) disclosed an order for 10 new 787 Dreamliners from LATAM Airlines Group, with options for five additional aircraft. With this latest order, LATAM plans to expand its 787 fleet to 52 by 2030, enhancing capacity on high-demand routes and supporting new routes, such as its nonstop service to Sydney, Australia. Notably, Boeing’s 2024 Commercial Market Outlook projects that Latin American air travel will more than double in the next 20 years, with annual growth of 5%. Nearly 2,300 new airplane deliveries are expected, expanding the regional fleet to over 3,000 aircraft by 2043. Ramiro Alfonsín, Chief Financial Officer of the LATAM Airlines Group said, “The Boeing 787 is a much more efficient aircraft, allowing us to continue growing sustainably while reducing our carbon footprint as we drive the growth of our operations. This order will enable us to receive at least two aircraft of this model each year […]

Boeing Co (NYSE:BA) reported a 1% year-over-year revenue decline to $17.854 billion in the third quarter of 2024, missing the consensus of $17.931 billion. Adjusted loss per share expanded to $10.44 from $3.62 in the same quarter of 2023, missing the consensus of $10.34. The company stated that the results reflect the impact of the International Association of Machinists and Aerospace Workers (IAM) work stoppage and previously announced charges on commercial and defense programs. Boeing recorded an adjusted operating loss of $5.989 billion for the quarter, compared to $1.09 billion a year ago. The core operating loss margin was (33.6%) Vs. (6%) a year ago. Commercial Airplanes revenue fell 5% YoY to $7.443 billion, impacted by $3 billion in charges and higher expenses. Deliveries declined by 10%; 116 airplanes were delivered, and the backlog included over 5,400 airplanes valued at $428 billion. Defense, Space & Security revenue rose 1% year over

The extended timeline that’s part of Boeing’s equity issuance is positive, say analysts at BofA Securities in a research note. The jet maker disclosed in regulatory filings that it could issue up to $25 billion in shares or debt during the next three years while also entering into a new credit agreement with lenders. The disclosure comes as the company is looking to stabilize amid a strike by its largest union that’s exacerbating its financial woes. “We expect Boeing to offer equity first, which should shore up the company’s balance sheet in the near term while maintaining the option to later issue equity debt with a lower risk of a credit downgrade,” say the analysts. Boeing is up 0.3%.

Boeing managed to deliver a small number of 737 MAX jets after a strike by machinists shut down the Renton, Wash., factory that builds the planes. But deliveries are expected to slow substantially as the walkout stretches into its second month. The jet maker delivered 33 planes last month, including 28 737s. That’s down form 40 jets overall in August and 32 737s. The company says it was able to slip out some delivery-ready planes after the strike started September 13. Analysts estimate Boeing built 10 737s in September, well off the company’s goal of 38 per month.

Boeing’s (BA) expected recovery, including its target of boosting production of Max aircraft to 38 units per month by the end of 2024, will likely be delayed by an ongoing strike by unionized workers which began Friday, S&P Global Ratings said Monday. S&P said the employee walkout by machinists will not immediately affect its credit rating or its longer-term outlook for the planemaker. The ratings agency said Boeing should be able to weather the financial impact of a strike lasting only a few weeks or so, noting the company had roughly $12.6 billion in cash on hand at the end of June and also has access to around $10 billion in undrawn credit facilities. Longer term, however, the S&P analysts said, “We believe an extended strike would be costly and difficult to absorb, given the company’s already strained financial position.” S&P currently rates Boeing debt at BBB-. Boeing already is

Shares in Boeing fall in premarket trading in the U.S. after the company’s largest union went on strike. Its stock is down nearly 4% at $156.55 after workers rejected a contract offer that would have raised pay by 25% over four years. In 2008, a 57 day strike over pay negotiations cost Boeing an estimated $100 million a day. The strike comes at a time when the indebted plane manufacturer may require an enormous equity raise to fix its balance sheet, Robert Stallard, equity analyst at Vertical Research Partners, wrote ahead of the vote to strike. In some delivery lines, Boeing has an excess inventory of material and therefore the strike may be a good opportunity to reset supplier deliveries, he adds. Boeing’s Frankfurt listed shares trade down 4% at 141.68 euros.

Boeing’s (BA) labor troubles continued after union rank-and-file on Thursday rejected a tentative contract proposal negotiated by the company and the union leadership and opted to go on strike. The International Association of Machinists and Aerospace Workers said on its website that 94.6% of the 30,000 Boeing workers voted to reject the contract and 96% voted in favor of a labor action. The union said its negotiating team “will regroup and begin planning the next steps on securing an agreement that our membership can approve.” Boeing said in a statement that it was clear the tentative agreement was unacceptable to its workers. “We remain committed to resetting our relationship with our employees and the union, and we are ready to get back to the table to reach a new agreement,” the company said. Shares of the plane maker were down nearly 4.8% in Friday’s premarket activity.