Boeing reports $6.17 billion quarterly loss amid ongoing challenges
American aerospace giant Boeing has reported a massive quarterly loss of $6.17 billion. This is the company's biggest quarterly deficit since 2020 when the COVID-19 pandemic crippled air travel. The third-quarter results showed a net loss of $9.97 per share on revenue of $17.8 billion with an operating cash flow in the red by $1.3 billion, ending September with roughly $10.5 billion cash reserves.
CEO Ortberg acknowledges Boeing's struggles and future plans
Addressing the financial blow, Boeing's new CEO Kelly Ortberg (who took over in August) admitted the company was struggling. He stressed on the importance of transparency and working together. "We need to know what's going on, not only with our products but with our people," Ortberg wrote in a memo to employees. He added it's important for them "to prevent the festering of issues and work better together."
Ortberg outlines strategy to revive Boeing's fortunes
Ortberg detailed a plan to turn Boeing's fortunes around, including mending the company culture, scaling back operations, and executing better on new aircraft models. The plans follow a series of setbacks for Boeing including two fatal crashes, a criminal conviction, a midair blowout, production delays, and most recently, a strike. The company had previously warned of huge losses after taking billions in charges on troubled programs.
Boeing seeks to raise funds and resolve labor dispute
In order to strengthen its financial position, Boeing has filed to sell up to $25 billion in stock or debt. Ortberg stressed the need for company leaders to be more present "on the factory floors, in the back shops and in our engineering labs." He also stressed on resolving the ongoing labor dispute with machinists whose strike has resulted in factory shutdowns since September 13.
Boeing's latest offer to striking workers includes wage hike
The union representing 33,000 workers is soon going to vote on Boeing's latest offer. The proposal includes a 35% wage increase over four years, a $7,000 ratification bonus and increased retirement contributions. Ortberg emphasized the need to maintain investment-grade status and implement a quality-improvement plan mandated by federal regulators after January's door-plug blowout on an Alaska Airlines flight.
