Big day for Boeing: the American aircraft manufacturer published its worst quarterly loss in four years on Wednesday, but hopes for the validation of a new social agreement, which would put an end to the costly strike which has paralyzed two crucial factories since mid-September.
No surprise: Boeing announced a third-quarter net loss of $6.17 billion, weighed down by heavy charges of five billion that it revealed on October 12. The consensus of Factset analysts was for losses of $6.12 billion.
“My mission is quite clear. To put this great ship back in the right direction and restore Boeing to its leadership position that we know and want,” commented Kelly Ortberg, its boss since the beginning of August.
“It’s a big change, it will take time,” he noted to analysts.
According to an AFP calculation, Boeing's net losses now exceed $31 billion since the start of 2020. Its largest quarterly loss, in the fourth quarter of 2020, reached $8.42 billion.
Around 4:15 p.m. GMT, Boeing shares fell 2.30% on the New York Stock Exchange.
The Commercial Aviation (BCA) branch is suffering from slowed production, to implement quality improvement measures after several years of oddities which culminated with an in-flight incident last January.
It is also suffering from the walkout of more than 33,000 workers around Seattle (north-west) – where Boeing was born in July 1916 – which has paralyzed the group's two main factories since September 13, producing the 737 (its best-selling plane). ), the 777, the 767 and several military programs.
The local branch of the Machinists' Union (IAM) announced an agreement in principle “worthy of consideration” on Saturday. A first agreement, presented on September 8, was massively rejected by its members, who voted for an immediate strike.
The new project notably provides for a salary increase of 35% over four years (the IAM demanded 40%), the reestablishment of an increased annual bonus, an increased employer contribution to the retirement plan and an increased signing bonus.
– Ratification? –
Union members began voting on Wednesday at 8:00 a.m. (3:00 p.m. GMT), until 5:00 p.m., with a result expected in the evening. If ratified, work could resume on Friday.
“I think it's going to be a close vote,” Jon Holden, president of the local IAM-District 751 branch, said Tuesday on CNBC. In the event of rejection, “we will resume negotiations. (…) This is the only option, our members will make this choice”, he explained.
Mr. Ortberg said he was “very optimistic about the vote” Wednesday on CNBC, his first interview since his nomination.
According to managers, the consequences on the group's finances will continue throughout 2025.
In September, Boeing delivered 33 planes, completed before the strike, but the next few months are expected to be frugal.
In addition to the dissatisfaction of airlines, forced to review their flight programs since 2023, fewer deliveries also mean less revenue – around 60% of the price is paid on delivery – and, consequently, shaky cash flow.
The aeronautics giant was already struggling to recover after the 737 MAX 8 crashes in 2018 and 2019, which left 346 dead, and the Covid-19 pandemic.
Boeing has announced measures in recent weeks to preserve its cash flow, including a 10% reduction in its global workforce (almost 171,000 employees by the end of 2023).
“We are overstaffed relative to the prospects of our company,” Mr. Ortberg explained on CNBC, acknowledging that if the strike continues, it will eventually have an impact on employment.
Boeing has also obtained a second credit line of ten billion dollars and plans to raise up to 25 billion over three years.
It could, moreover, sell non-strategic assets. According to Mr Ortberg, a review of the portfolio is underway and it will “probably” be appropriate to “streamline” it.
“Our core business is commercial aircraft and defense systems (…) but there are probably things at the margins that could be more effective or that distract us from our main objective,” he said. he explained to analysts.
The Defense and Space (BDS) branch also generates significant losses on fixed-price contracts for the American government and the American space agency (Nasa).
