Friday, October 11, 2024

Breaking: Boeing -- Pre-Announces 3Q24 Loss -- Just After Market Closes, Friday Afternoon, October 11, 2024

Locator: 48560BOEING.

Link here.

Later, link here:

Usual disclaimer in place. Done quickly. There will be typographical and content errors. Everything needs to be fact-checked. A dynamic situation.

Details to follow.

Boeing: pre-announces 3Q24 loss.

  • a substantial GAAP loss: $9.97 / share 
  • 3Q24 revenue: $17.8 billion
  • to take a $5 billion 3Q24 charges
  • cutting 10% of its work force across the company; 17,000
  • will delay entry into service with next a/c, the Boeing 777X ; from next year to 2026
  • ending production of the 767 freighter, when current planned production end

New CEO:

  • kitchen-sink cuts, but also existential moves
  • not just about short term balance sheet but long-term survival

Mike Santoli: agrees. More than just short-term balance sheet issues.

Jefferies: senior research analyst

  • Boeing Defense a really big issue
  • forecast to lose $1 billion next year 

Ticker:

  • after being up slightly during normal trading hours, drops almost 3% after hours
  • recovers slightly

Other comments:

  • machinists strike continues
    • 33,000 machinists
    • that will be an interesting meeting when the union boss announces that of those 33,000 on strike, 10% will be out of a job before the strike is over
    • one would assume, seniority takes priority
    • one would assume most of those losing their jobs would be new hires over the past couple of years 
  • too big to fail: when does Trump and/or Harris announce they will not let Boeing fail? 
  • too big to fail: how did "we" get into this situation in the first place?

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