Boeing’s New CEO to Outline Vision for Troubled Manufacturer
As Boeing prepares to release its quarterly report, new CEO Kelly Ortberg is set to share his vision for the company’s future. With a potential strike-ending labor agreement on the table, investors are cautiously optimistic about the prospects of a slimmed-down Boeing.
A New Era for Boeing?
Ortberg, a seasoned aerospace veteran, took the reins at Boeing in early August with a tall order: to right the ship. The company has been plagued by production issues, cash burn, and a loss of trust from regulators and customers. However, with a new labor proposal on the table, there may be light at the end of the tunnel.
Labor Vote Looms Large
The International Association of Machinists and Aerospace Workers District 751 will begin voting on a new contract proposal on Wednesday, with results expected that night. The proposal includes 35% raises, a $7,000 signing bonus, and additional 401(k) contributions. If approved, the deal could bring an end to the five-week work stoppage that has halted most of Boeing’s production.
Restructuring on the Horizon?
As Boeing bleeds cash, the company is planning to raise up to $25 billion in debt or equity. Ratings agencies have warned that Boeing could lose its investment-grade rating, and the company is taking steps to increase liquidity. Ortberg has hinted at big changes ahead, promising a greater focus on core areas and a more streamlined approach.
What to Expect from Ortberg’s Earnings Call
When Ortberg takes the mic on Wednesday, investors will be looking for clues about what a smaller Boeing could look like. Will the company divest parts of its portfolio? Which programs or assets could be on the chopping block? With a nearly $10-per-share loss expected for the third quarter, investors are eager for guidance on Boeing’s future prospects.
The Aerospace Industry Watches with Bated Breath
The aerospace industry is heavily reliant on Boeing’s success, and the ongoing strike is having far-reaching consequences. Suppliers are feeling the pinch, and the Aerospace Industries Association is appealing directly to President Joe Biden to help put an end to the strike. As the situation continues to unfold, one thing is clear: the fate of Boeing and the aerospace industry hangs in the balance.
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