|Bid||63.25 x 800|
|Ask||65.97 x 1100|
|Day's Range||63.12 - 66.36|
|52 Week Range||63.12 - 100.34|
|Beta (5Y Monthly)||1.11|
|PE Ratio (TTM)||10.80|
|Earnings Date||Jan 29, 2020 - Feb 02, 2020|
|Forward Dividend & Yield||0.48 (0.71%)|
|Ex-Dividend Date||Dec 11, 2019|
|1y Target Est||80.53|
While the company isn't being specific, it appears the layoffs could be tied to local turmoil in commercial aviation.
(Bloomberg Opinion) -- The worst-case scenarios for Boeing Co.’s 737 Max crisis no longer look far-fetched.The airplane maker said Tuesday that its “best estimate” for when regulators will lift a flying ban on its Max jet is now mid-2020. The once top-selling plane has been grounded since March following two fatal crashes. The updated timeline reportedly reflects a new, recently discovered software flaw connected to how the Max’s flight computers power up and verify they’re receiving valid data, as well as the need to correct vulnerabilities in certain wiring bundles. Boeing said it’s also accounting for “further developments that may arise in connection with the certification process.”Perhaps the company is finally taking a more conservative attitude toward the Max crisis after a series of overly optimistic promises left its reputation in tatters and CEO Dennis Muilenburg without a job. The Federal Aviation Administration, for its part, reiterated that there’s no time frame for the Max’s return and that safety is its first priority. Airlines and suppliers now have to recalibrate accordingly, and this latest delay will be by far the most painful for them.With its stockpile of undeliverable jets growing and its cash burn deepening, Boeing had already made the call to halt production of the Max once it became clear it wouldn’t meet its previous deadline for a return to service by the end of 2019. The shutdown, which began in January, has already forced suppliers to idle their factories as well and, in some cases, to lay off employees. In one of the more extreme examples, Spirit AeroSystems Holdings Inc., which gets more than half its revenue from the Max, saw the rating on its debt cut to junk by Moody’s Investors Service earlier this month and is cutting about 2,800 workers. In total, economists from Barclays and JPMorgan Chase & Co. estimated the Max production shutdown could subtract half a percentage point from U.S. gross domestic product in the first quarter. Investors were expecting total compensation to affected airlines to amount to about $10 billion, according to a survey conducted by Bernstein analyst Douglas Harned. If that sounds bad, consider that the baseline case among investors and analysts before Tuesday’s update was that Max deliveries would resume by March or April.The major U.S. airlines have all pulled the Max from their schedules through June in what they thought would be a conservative call. The logistical challenges of bringing jets out of storage and putting pilots through the simulator training that Boeing has now decided to recommend means that the airlines will likely have to go without their Max fleets for yet another peak travel season. That is likely to drive even more market share toward Delta Air Lines Inc., which doesn’t fly the Max and has been benefiting from that fact. The longer the grounding lasts, the more permanent those share gains may be. Either way, expect airlines to significantly increase their demands for compensation.The biggest pain will be felt by Boeing’s suppliers. A three-month production shutdown is one thing; a six-month halt is something else, entirely. Getting supplier factories humming to the point where they could meet Boeing’s Max production pace required a logistical miracle and some parts-makers actually used the first few months of the grounding to play catch-up. At a minimum, suppliers run the risk of workers leaving for more secure jobs amid a buoyant labor market. Taco Bell is offering a $100,000 salary for a restaurant manager position, for heaven’s sake. For others, the damage may be more lasting. Boeing enjoys an effective duopoly with Airbus SE that has helped buoy profits over the years and arguably protected it from greater financial pain in the form of canceled Max orders. The flip side of that is that some suppliers depend heavily on Boeing for their business. The biggest producers such as General Electric Co., Honeywell International Inc. and United Technologies Corp. will be able to weather the hit from a prolonged production halt; smaller suppliers risk going bankrupt.This will all come back to haunt Boeing once it’s finally ready to restart production. With a legitimate debate about the sustainability of air traffic growth at the levels needed to maintain demand, it’s not out of the question that the company might not ever reach its target of producing 57 Max jets per month. Air Lease Corp. Chairman Steven Udvar-Hazy said Monday that his company had urged Boeing to drop the Max name to make the plane more palatable for fliers. But the longer the grounding drags on, the likelihood increases that Boeing will need to make more than just a name change for the latest iteration of its 737 model and instead plow billions into a true successor. To contact the author of this story: Brooke Sutherland at email@example.comTo contact the editor responsible for this story: Beth Williams at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Brooke Sutherland is a Bloomberg Opinion columnist covering deals and industrial companies. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Hourly workers part of the 2,800 local layoffs announced earlier this month by Spirit AeroSystems Inc. will begin leaving the company this week. According to previous information provided to the WBJ by union members, the ranks of the International Association of Machinists and Aerospace Workers were expected to account for around 2,450 of the 2,800 local layoffs.
Boeing says it is telling customers and suppliers that it will be the middle of the year before the MAX is back.
Boeing is set to borrow another $10 billion, according to Reuters, as the company’s 737 MAX drama drags on. Boeing doesn’t appear to have a cash crunch just yet, so what is the $10 billion for?
Spirit and its largest union have been discussing extending the Machinist's current contract amid the fallout from the Boeing Co. 737 MAX.
Spirit AeroSystems Holdings, Inc. (SPR) could be a stock to avoid from a technical perspective, as the firm is seeing unfavorable trends on the moving average crossover front.
Details the 52-week lows for the following companies: Exxon Mobil, Boeing, DuPont de Nemours, Simon Property Group, Franklin Resources and Spirit Aerosystems Holdings Continue reading...
More concerns about software in the grounded jet drove Boeing shares down Friday. The level of uncertainty swirling around Boeing shares is “unprecedented.”
Moody's rates the layoffs as "credit negative" for both Wichita and Sedgwick County, warning everything from talent migration to lower sales tax revenues.
The United Way of the Plains is seeking community donations to build up a fund that helps pay bills for workers in Sedgwick County impacted by layoffs. “We live in the most caring community in our nation where we all step forward to help each other,” Patrick Hanrahan, president and CEO of the United Way of the Plains, says in a news release. Donations can also be made by check noting “Laid-Off Workers Fund” in the memo section, payable to the United Way of the Plains and mailed marked Attn: Laid-Off Workers Fund to PO Box 47208, Wichita, KS 67201-7208.
Canaccord Genuity cut Boeing and Spirit AeroSystems price targets. Firm says Boeing could face a charge of more than $5 billion stemming from the 737 MAX grounding.
The union says the actual length of the extension, originally said to be one year, is something that will be negotiated if talks are approved by members.
Bombardier said Thursday that it is "reassessing" its partnership with Airbus on the A220 commercial jet program.
Spirit AeroSystems Inc. in Wichita was building at the rate of 52 aircraft per month on the 737 before production was halted to begin the year.
The Kansas Department of Labor, which is meeting with stakeholders in Wichita this week, has rolled out a new webpage for impacted workers.
Investor services firm expects Spirit liquidity to "quickly and materially erode" barring quick action from Boeing on on the 737 MAX.
With uncertainty still surrounding the 737 MAX, the company is looking for breathing room with its largest union on a deal that is to expire later this year.
David L. Calhoun began his first day as Boeing's new chief executive on Monday with a mandate to get the troubled 737 MAX approved for commercial flight again so the company can resume production and staunch months of financial bleeding. How he manages the crisis will not only impact Boeing Co (NYSE: BA) employees and shareholders, but an extended supply chain comprised of hundreds of companies and even the broader economy given Boeing's status as the country's largest single exporter. Last year's ripple effects last year, reflected in higher airline operating costs and lost capacity, are now waves crashing into the vast supply base with the shutdown of the 737 MAX production line this month.
Debt investors got a new update about the 737 MAX situation Monday. Moody’s put Boeing on review for a downgrade. What’s more, the bond rating agency downgraded bonds of Boeing supplier Spirit AeroSystems.
Moody's Investors Service late Monday said it placed its debt ratings on Boeing Co. on review for downgrade, thanks to a likely "more costly and protracted recovery for Boeing to restore confidence with its various market constituents, and an ensuing period of heightened operational and financial risk, even if certification of the (737 Max) comes relatively near-term." News last week that major Boeing supplier Spirit AeroSystems Holdings Inc. will lay off workers in connection with the Max grounding "was unexpected and is an example of the ongoing event risk weighing on (Boeing's) credit profile," Moody's said. Boeing's 737 Max jets have been grounded worldwide since March after two deadly crashes months apart were connected to a faulty anti-stall system. The airplane's return-to-service date has been stretched for months. "Moody's considers that the longer the grounding runs, the greater the risk to Boeing's already blemished reputation," the debt ratings agency said. Boeing's senior unsecured debt is rated A3, one of the lower echelons of investment-grade bonds. Moody's on Monday downgraded Spirit's debt to junk territory on liquidity concerns. Shares of Boeing rose 0.1% in the extended session after ending the regular trading day up 0.1%.
Moody's Investors Service, ("Moody's") placed its debt ratings, including the A3 senior unsecured ratings, for The Boeing Company and subsidiary Boeing Capital Corporation on review for downgrade. Moody's affirmed the Prime-2 short-term rating. "Recent developments suggest a more costly and protracted recovery for Boeing to restore confidence with its various market constituents, and an ensuing period of heightened operational and financial risk, even if certification of the MAX comes relatively near-term, as expected," said Jonathan Root, Moody's Senior Vice President and lead analyst for the company.