Boeing machinists went on strike after rejecting a 25% pay raise.That is shuttered the going manufacturing plant
Here are the main points from the Boeing CFO's statement
Strike Impact: Strike will jeopardize recovery, impact production and deliveries
Cash Conservation: Laser-like focus on actions to conserve cash
Union Negotiations: Want to get back to the table and reach an agreement
Production Goals: Getting to 38/month by end of year will take longer
Inventory Levels: About 70 aircraft left in inventory at shadow factory
Supply Chain Constraints: Broadly impacting the industry, affecting deliveries
Specific Production Impacts:
787 deliveries below 5/month due to seat shortage
Lower 777 deliveries due to engine supply issues
Defense Unit: Q3 margins to be negative
The last strike lasted 58 days.
Fitch is now out saying that if the strike is extended it could impact Boeings ratings (cut to junk status).
Shares are down -3.1% at $157.80. For the trading year, the stocks is down close to 40% on the year.
The consistently negative Boeing headlines takes the headline away from Intel. It's shares are down nearly 61% on the year. The third worst performer of the Dow stocks is Nike down -27.6% in 2024
PS. Moody's now joins Fitch on a downside credit watch.