Bulletin: Boeing Co. Remains On CreditWatch Negative Amid Third Quarter Losses

NEW YORK (S&P Global Ratings) Oct. 14, 2024--S&P Global Ratings said today that Boeing Co.'s reported preliminary third-quarter losses were largely due to cost overruns and delays in new commercial and defense aircraft development. The company expects to record charges totaling $5 billion in the quarter and report a loss of about $6 billion. The charges are noncash initially but reflect reduction of cash flows in future years. Boeing concurrently announced plans to reduce its workforce by approximately 10%, representing about 17,000 employees. We assume the cuts will take place in 2025 and will result in a significant reduction in costs though there will likely be upfront expenses and the effect on the company's productivity from the cuts are not

...NEW YORK (S&P Global Ratings) Oct. 14, 2024--S&P Global Ratings said today that Boeing Co.'s reported preliminary third-quarter losses were largely due to cost overruns and delays in new commercial and defense aircraft development. The company expects to record charges totaling $5 billion in the quarter and report a loss of about $6 billion. The charges are noncash initially but reflect reduction of cash flows in future years. Boeing concurrently announced plans to reduce its workforce by approximately 10%, representing about 17,000 employees. We assume the cuts will take place in 2025 and will result in a significant reduction in costs though there will likely be upfront expenses and the effect on the company's productivity from the cuts are not yet clear. We believe the reduction will not include union employees. A strike by Boeing's machinist union over wages and benefits is in its fifth week. The union did not vote on a company offer that included a 30% raise over four years and certain...

Bulletin