{"id":1497397,"date":"2024-10-20T17:25:00","date_gmt":"2024-10-20T21:25:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1497397"},"modified":"2024-10-20T17:25:00","modified_gmt":"2024-10-20T21:25:00","slug":"boeing-explores-asset-sales-in-potential-shrinking-of-corporate-footprint","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/boeing-explores-asset-sales-in-potential-shrinking-of-corporate-footprint\/1497397\/","title":{"rendered":"Boeing Explores Asset Sales In Potential Shrinking Of Corporate Footprint\u00a0"},"content":{"rendered":"

Boeing Explores Asset Sales In Potential Shrinking Of Corporate Footprint\u00a0<\/span><\/p>\n

\n

The Wall Street Journal<\/a> reported Sunday morning that Boeing is mulling over\u00a0asset sales to raise cash levels for its struggling\u00a0business. On Saturday, Boeing and union heads reached a\u00a0tentative labor contract\u00a0agreement that could soon end the money-draining months-long labor strike, while early last week,\u00a0the planemaker filed a\u00a0$25 billion shelf registration to provide a “variety of capital options as needed to support the company’s balance sheet over a three-year period.”<\/p>\n

The new report cites a person familiar with a recent\u00a0discussion between Boeing’s board and executives at its headquarters in\u00a0Arlington, Virginia. The meeting centered around potential asset sales, as executives and board members combed through internal reports on the state of each of the planemaker’s units.\u00a0<\/p>\n

Just weeks ago,\u00a0Boeing CEO Kelly Ortberg told employees,\u00a0“We need to be clear-eyed about the work we face,” adding, “We also need to focus our resources on performing and innovating in the areas that are core to who we are.”<\/p>\n

<\/a><\/p>\n

Ortberg replaced\u00a0Dave Calhoun<\/a> as the president and CEO of Boeing on August 8. He is expected to comment publicly for the first time as CEO on Wednesday, following the\u00a0International Association of Machinists and Aerospace Workers’ vote on the new labor contract<\/a>. The company estimated the strike to cost $1 billion. It warned of a $6 billion quarterly loss for the\u00a0period ending September 30.\u00a0<\/p>\n

On Tuesday, just days after Boeing announced plans to cut\u00a010% of its workforce<\/a> due to\u00a0intensifying\u00a0financial pressure, such as dwindling cash reserves and mounting risk of a credit downgrade, as well as prolonged strike, the\u00a0beleaguered planemaker filed a $25 billion shelf registration<\/a>.\u00a0<\/p>\n

“This universal shelf registration provides flexibility for the company to seek a variety of capital options as needed to support the company’s balance sheet over a three-year period,” Boeing wrote in the filing.\u00a0<\/p>\n

Separately, Boeing entered into a $10 billion “supplemental credit agreement” with a\u00a0consortium of lenders. It noted that\u00a0the credit facility provides “additional short-term access to liquidity as we navigate through a challenging environment,” adding that it has not drawn down on this\u00a0facility or its existing credit revolver.\u00a0<\/p>\n

Boeing has already considered selling its\u00a0rocket-launching joint venture,\u00a0United Launch Alliance, with Lockheed Martin to\u00a0Sierra Space for $2-$3 billion. Also, Boeing’s space division is in crisis following the malfunctioning of the Starliner<\/a> spacecraft.<\/p>\n

Separately, Boeing’s competitor, Airbus, laid off 2,500 jobs in its space division<\/a>, as Elon Musk’s SpaceX dominates rocket launches and leads the space race in this solar system.\u00a0<\/p>\n

Boeing’s obsession (Wall Street’s\u00a0obsession)\u00a0with DEI, climate, and gender justice ultimately dealt the fatal blow. It’s time to refocus on the fundamentals, like building planes that actually stay in the sky. Is that a hard ask, Boeing?<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nSun, 10\/20\/2024 – 13:25<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/markets\/boeing-explores-asset-sales-potential-shrinking-corporate-footprint<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Boeing Explores Asset Sales In Potential Shrinking Of Corporate Footprint\u00a0 The Wall Street Journal reported Sunday morning that Boeing is mulling over\u00a0asset sales to raise…<\/p>\n","protected":false},"author":0,"featured_media":1497398,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1497397","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1497397","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1497397"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1497397\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media\/1497398"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1497397"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1497397"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1497397"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}