Boeing’s losses skyrocketed

On October 23, Boeing said it lost $6 billion in the third quarter. Since the beginning of the year, this company has lost nearly 8 billion USD. Last quarter’s revenue also decreased by 1%, to 17.84 billion USD.

During the quarter, Boeing spent $1.96 billion in cash, an increase of more than 6 times compared to the same period last year ($310 million). Chief Financial Officer Brian West forecasts that the company will continue to burn money this year and 2025. This information caused Boeing shares to drop 1.7% yesterday.

West said the company has a plan to resolve short-term financial difficulties, including issuing more shares and bonds. Reuters Previously, citing close sources, the company’s issuance scale was about 15 billion USD.

“Based on current analysis of market demand, production speed, time to receive payment and pay expenses, we believe there is still enough capital to operate in the near future and access additional liquidity in time.” coming,” Boeing said in the report.

However, this company may have to sell off assets and reduce labor size to focus on the main segment of manufacturing aircraft and defense equipment. “I think we should do less and better, instead of spreading it all out and doing nothing well,” said Boeing CEO Kelly Ortberg.

This airline is reeling from a series of scandals, from a flight safety crisis, production delays to a debt of up to 60 billion USD. Earlier this month, Boeing announced plans to reduce staff by about 10% globally, equivalent to 17,000 workers. The announcement was made amid a month-long strike by workers at Boeing factories on the West Coast, causing production of the 737 MAX, 767 and 777 models to stall.

However, the strike has not ended yet, as Boeing workers continue to veto the new labor agreement, including provisions for a 35% salary increase over 4 years.

Brian West said the production target of 38 737 MAX aircraft per month this year was delayed due to the strike. However, even when this ends, restarting production of the 737 MAX, 767 and 777 wide bodies will still be a challenge, due to supply chain issues. Boeing must convince suppliers to reverse decisions of the past few weeks and give workers unpaid leave and postpone new investments.

“Restarting is much more difficult than stopping,” Boeing CEO Kelly Ortberg assessed Boeing’s factories and supply chain.

However, analysts consider this statement an optimistic signal. “Boeing previously did not even admit they had a problem, let alone fix it,” explained Robert Stallard – analyst at Vertical Research Partners.

Ortberg said that Boeing is a big ship that needs time to change direction. “But once it does this, it will have the ability to be as great as before,” he affirmed.