
Boeing HQ
After the downgrade from Wells Fargo and a major stock selloff yesterday, the good news is that it is relatively quiet for Boeing. But today’s stories are not particularly optimistic, as they talk about Boeing bracing for more bad news – the potential for a strike. An IAM walkout would be devastating to Boeing’s already negative cash flow, something Boeing cannot afford as it already needs to issue equity to repair its balance sheet. Unfortunately for shareholders, dilution will lead to lower share prices.
With the undocking from the International Space Station set for 6:01pm Friday September 6th, and a return just after midnight on the 7th, Boeing and NASA are preparing for an automated return without the astronauts. Additional stories have emerged in which participants discussed meetings between Boeing and NASA as heated, with Boeing believing in its modeling that the thrusters will work, and NASA unwilling to take further risks. We will find out the answer to the question on Friday night.
In good news for Boeing, China accepted 9 737 MAX aircraft in August, the largest number in the last few years. With an additional 64 aircraft in inventory earmarked for China, delivery of these airplanes is a double win for Boeing – a cash influx with a reduction in the expense of carrying inventory. If a strike occurs, could Boeing management personnel prepare additional Chinese aircraft for delivery during a walkout? If so, some of the cash flow drain could be mitigated.
Links to today’s key news follow:
- Boeing braces for more bad news – The State
- Traveling may get a lot more frustrating with latest Boeing issue – The Olympian
- NASA, Boeing prepare for return of Starliner spacecraft – without its astronauts – CBC
- Boeing speeds 737 deliveries to China in respite for new CEO – BNN Bloomberg
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