Boeing considers selling stock for USD 10 bn

Boeing considers stock sale: US planemaker Boeing is considering raising at least USD 10 bn by selling stocks in a bid to restore cash reserves depleted further by the ongoing strike at the company, Bloomberg reports, citing sources familiar with the matter. Raising equity likely won’t happen for at least a month as the firm wants a clearer assessment of the financial implications caused by the strike.

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The money strain is real: Boeing is facing a liquidity crunch after burning through USD 8.25 bn during 1H 2024, and analysts expect it to suffer a USD 3.36 bn cash outflow in 3Q 2024. The strike will likely cost the company some USD 1.5 bn for each month that workers are off the job. Boeing says it is willing to “take any necessary actions” to preserve its investment grade rating and fix a balance sheet burdened by its USD 58 bn debt load. “We are perfectly comfortable to supplement our liquidity position to support those two objectives,” Bloomberg quoted CFO Brian West as saying.

IN OTHER BOEING NEWS- Boeing finds itself in more hot water: The US National Transport Safety Board (NTSB) has said that over 40 foreign parties operating Boeing 737 airplanes may be using planes with rudder components which could pose safety risks, Reuters reports, citing a statement. The authority has found that some 271 impacted parts may be installed on aircrafts in service, but did not clarify which carriers may be using these parts. Boeing has declined to comment, but it said last week that it had informed affected 737 operators of a “potential condition with the rudder rollout guidance actuator.”

Background: The investigation was provoked by an incident on a United Airlines flight, when the plane's rudder pedals was stuck in neutral position during a landing at Newark Airport earlier this year. The authority has since found that two foreign operators suffered similar incidents in 2019, raising concern of a much wider issue.