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Today Boeing Company (BA) is the best performer in the DJIA
By: Thom Hartle | December 11, 2024
• Today (8:32 CST), the best performer in the DJIA is Boeing Company. BA.
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Large $BA $441 Million Dark Pool Print Detected (Unusual)
By: Cheddar Flow | December 10, 2024
• $SPX seemingly range bound between 0.75 and 1.0 std dev. Waiting to see signs of direction.
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Boeing $BA is showing a solid risk-to-reward setup for longs off last month’s low
By: TrendSpider | December 10, 2024
• Boeing is showing a solid risk-to-reward setup for longs off last month’s low. $BA
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Internal Voices Call For Boeing Breakup To Boost Stock By 100%
By: Forbes | December 8, 2024
Once hailed as the height of American aerospace invention and engineering, Boeing now faces several growing difficulties that have aroused shareholder uncertainty and jeopardized its financial viability. The decline of the stock has been brutal. Disputes, manufacturing delays, and eroding market trust have eclipsed the company's heritage over decades of greatness. Unexpectedly, even Boeing's own employees, who form the core of its operations, have begun to support a radical and transformative action: a full Boeing breakup. This internal desire for change shows a growing awareness among companies that their present structure is not efficiently serving their stakeholders. Analysts estimate that this kind of action could potentially double Boeing's stock value. The concept of separation is no longer only a strategic choice; it's becoming necessary for the company's future.
The Call From Within For A Boeing Breakup
In a significant and unexpected development, senior managers at Boeing have expressed their support for dismantling the conglomerate and a full breakup of the company. After Boeing's workforce sent a letter directly to The Edge, expressing their agreement with the firm's recommendation for a corporate breakup, this shift gained momentum. This internal push highlights a profound acknowledgment from those closest to the company’s operations: Boeing’s current structure not only impedes operational efficiency but also hinders its ability to achieve optimal market performance. The alignment of internal voices with external analysis underscores the urgency for transformative change.
Boeing’s Stock Price Decline
Deeply ingrained and growing over time are Boeing's problems. Tragically claiming 349 lives, the 737 MAX catastrophes revealed serious flaws in corporate governance and fundamental safety shortcomings. These events started a chain reaction of problems, including ongoing manufacturing delays, repeated quality control failures, and growing financial losses. Combined, they have seriously tarnished Boeing's once-starry reputation. Investor confidence has dropped; the company's shares have fallen 43% year-to-date, a clear indication of the market's mounting concern on Boeing's capacity to recover.
Boeingf Vs S&PBarchart
The Case For A Boeing Breakup
Separating Boeing into four separate divisions—commercial airplanes, defense, space and security, and global services—could release significant revenue. This approach would let every division concentrate on its main strengths, simplify processes, and improve responsibility. This kind of action reflects General Electric's recent separation, meant to simplify its corporate strategy and increase shareholder value.
Boeing Has A 100% Upside On A Breakup
The Edge Consulting Group, who have advised on breakups for the last 20 years, sees a 100% increase in the stock price from the sum of the parts if Boeing were to break up in the manner suggested. This projection is based on the potential for each standalone unit to achieve higher operational efficiency and profitability, thereby attracting more focused investment.
Employee Sentiment: A Catalyst For Change
The growing demand for a split within Boeing's own ranks is a significant trend. Staff members, who actively participate in the organization's daily operations, are making a strong case for a structural redesign. This is more than just discontent; it's an acknowledgment of fundamental inefficiencies compromising Boeing's capacity for global competitiveness and efficient operation.
Senior leadership and ground crew of Boeing have a detailed awareness of the operational difficulties that outsiders sometimes overlook. Their support of a split highlights a harsh reality: the company's present monolithic structure hinders efficiency, creativity, and finally expansion. These workers have seen personally the knock-on impacts of bureaucratic bottlenecks, quality control problems, and manufacturing delays resulting from a large, clumsy company.
This is an urgent call to action for management, not only a warning. Long-term Boeing performance depends on rebuilding confidence and morale among the employees. Ignoring this internal agreement runs the danger of alienating the very people by keeping the business going. It also runs the danger of widening the gulf between management and the workers vital to Boeing's recovery.
The employees' support of a separation is about a vision for a more nimble, targeted, and responsive Boeing, not only about frustration. They are pushing for a system whereby every division—commercial aviation, defense, services—may function free from the complexity of the bigger body. This is, they think, the secret to releasing the actual potential of the business.
Management must pay attention to this realization and welcome the chance for reorganizing. By doing this, Boeing not only answers staff worries but also sets itself to flourish in a market that is growingly competitive. A separation may revitalize the business, rebuild its reputation, improve operational effectiveness, and maybe release the 100% upside that several analysts, including The Edge, have indicated.
Rare and potent is this moment of employee-driven lobbying. Boeing's leadership has a chance to coincide with the individuals most familiar with the business and guide it toward a rich, sustainable future. Ignoring this threatens not only the business's legacy but also its survival.
A Boeing Breakup Is A Strategic Imperative
The company finds itself at a crucial juncture. A Boeing breakup isn’t just a strategic option—it’s a proven path to revitalization. Intel’s recent struggles highlight what happens when a company clings to outdated structures, hampering its ability to innovate and meet market demands. In contrast, General Electric’s successful breakup demonstrates the power of streamlined focus, operational efficiency, and unlocking trapped shareholder value.
By embracing this transformation, Boeing can follow GE's lead, shedding the inefficiencies that have eroded its legacy and restoring confidence among investors and employees alike. This move would allow its divisions—commercial aviation, defense, and services—to thrive independently, each aligned with market demands and primed for growth. Analysts project a 100% upside if Boeing takes this decisive step, and its own workforce is calling for it.
The choice is clear: adapt and unlock Boeing’s true potential, or risk following Intel's path of stagnation and decline. Over decades, Boeing's employees have created a legacy that is evidence of creativity, commitment, and American aerospace greatness. These are the men and women who built airplanes capable of revolutionizing the planet, backed national defense, and carried mankind upward. Their diligence and unrelenting search of innovation produced a brand that stood for advancement, safety, and trust. But that heritage is now on the brink, taxed by business mistakes, manufacturing delays, safety lapses, and a loss of strategic clarity.
The significance of this heritage cannot be overlooked due to inertia or uncertainty. Boeing's current structure has become too burdensome; it restricts efficiency, stifles creativity, and irritates the very individuals who sustain the business. Those who know the company's shortcomings and its unrealized potential better than anybody else are calling for reform from within.
This isn’t just a business decision; it’s a fight to preserve Boeing’s soul, its workforce, and its standing as a leader in aerospace. The opportunity is diminishing, and delaying is no longer an option.
Boeing must act now. A Boeing breakup needs to happen. The company’s future depends on it.
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Today Boeing Company (BA) is the best performer in the DJIA
By: Thom Hartle | December 5, 2024
• Today (8:32 CST), the best performer in the DJIA is Boeing Company. BA.
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Boeing's $BA new CEO has dramatically cut back the number of private jet flights taken by company executives
By: Evan | November 29, 2024
• Boeing's $BA new CEO has dramatically cut back the number of private jet flights taken by company executives - Bloomberg.
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Today Boeing Company (BA) is the best performer in the DJIA
By: Thom Hartle | November 29, 2024
• Today (8:32 CST), the best performer in the DJIA is Boeing Company. BA.
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Bear of the Day: Boeing
By: Zacks Investment Research | November 27, 2024
When it comes to aerospace, Boeing (BA) is the name on everyone’s lips. But recently, this industry titan has found itself struggling to get its wings back. Let’s cut through the buzz and dive into why Boeing might not be the high-flyer it once was, and why I’m naming it today’s Bear of the Day.
Boeing is a leading American multinational corporation in the aerospace and defense sectors. The company designs, manufactures, and sells airplanes, rotorcraft, rockets, satellites, and missiles worldwide, and provides leasing and product support services.
It seems like every time Boeing starts to pick up altitude, it gets hit with more turbulence. The aerospace giant has been dogged by supply chain disruptions, causing delays in production. And it’s not just about the materials—skilled labor shortages continue to plague the industry, leaving Boeing struggling to meet delivery timelines.
In the post-COVID world, supply chain issues have become a tired excuse, but investors demand results. Boeing’s inability to iron out these problems raises questions about management’s effectiveness in navigating a tricky macroeconomic environment.
Over-promise and under-deliver has become the mantra at Boeing recently. A quick look at the Price, Consensus and Surprise Chart outlines this. Earnings estimates seem to start sky high every year then spend the rest of the year being walked back.
That’s a big reason why the stock is currently a Zacks Rank #5 (Strong Sell). Over the last sixty days, no fewer than eight analysts on Wall Street have cut their earnings estimates for the company. The negative moves have dropped our Zacks Consensus Estimate for the current year from a loss of $4.23 to a loss of $16.20. Next year’s number has been cut from a profit of $3.32 to a meager 6-cents.
Image Source: Zacks Investment Research
A feather in the bull’s cap here, revenue growth is forecast to return in grand fashion next year. After contracting 10.5% for FY24, Wall Street is now expecting 23% growth next year to $85.9 billion.
The Aerospace – Defense industry is currently in the Bottom 46% of our Zacks Industry Rank. There are a handful of names in the industry which are in the good graces of our Zacks Rank. These include Zacks Rank #1 (Strong Buy) Leidos (LDOS) as well as Intuitive Machines (LUNR).
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Boeing $BA was just awarded multiple contract modifications with the US Military worth more than $4 Billion
By: Evan | November 21, 2024
• Boeing $BA was just awarded multiple contract modifications with the US Military worth more than $4 Billion.
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Is Boeing Stock a Buy? 5 Pros and 1 Big Risk to Watch in 2024
By: Market Beat | November 18, 2024
The Boeing Company BA has had a tumultuous 2024 mired by regulatory issues, negative publicity, lay-offs, rising debt, stock dilution, and mounting losses capped off by a 33,000 worker machinists’ union strike.
The aerospace sector giant has seen its stock lose 46.2% year-to-date (YTD), hitting levels not seen in over two years. Many investors may believe Boeing’s incumbent position as an American monopoly and global duopoly for commercial airplane manufacturing makes it a viable long-term hold despite the short-term pain.
The incoming Trump administration’s core “Made in America” theme drives its initiative to bolster American supply chains in the name of national security. Many believe that Boeing is too vital to America to go under.
Let's take a look at five reasons to buy Boeing stock—and one reason to avoid it altogether.
1. The Union Strike Is Finally Over; Production Can Resume
The Boeing machinists’ strike started on Sept. 13, 2024 when over 33,000 workers walked off the job at the Everett and Renton plants in Seattle. This put an immediate production halt to its Boeing 737, 777, and 767 airplanes, pushing the company's losses to more than $6 billion in its third quarter of 2024. Analysts believe Boeing lost around $5.5 billion in earnings due to the strike.
The resulting cash crunch prompted Boeing to raise over $20 billion in a stock offering to improve its liquidity position and fend off potential downgrades from ratings agencies. This move, however, resulted in shareholder dilution. The company is also laying off 10% of its 177,000-person workforce in a restructuring effort to trim costs.
On Nov. 4, 2024, Boeing reached a settlement with the machinists for a 38% pay raise over four years, a $12,000 ratification bonus, and improved 401k benefits. With nearly 59% of the strikers voting to approve the new contract, the strike officially ended, and production is set to resume in a few weeks.
2. Boeing Has Over $500 Billion of Backlog
While Boeing is often referred to as part of a global duopoly with Airbus SE EADSF, U.S. airlines tend to favor Boeing due to its strong domestic presence and longstanding relationships. However, American Airlines Group Inc.
AAL
continues to place significant orders with Airbus, such as the A321neo.
Boeing holds a dominant position in the U.S. market for commercial aircraft. The post-pandemic travel boom has driven all the major airlines to upgrade their fleets, which means more airplane orders for Boeing. Actually, more than they can handle.
The company is currently managing substantial order backlogs for several major airlines:
• United Airlines Holdings Inc. UAL is waiting on 497 airplanes and has cut its 2024 deliveries by 102 fewer planes.
• Southwest Airlines Co. LUV, which exclusively only flies Boeing 737 planes, is still waiting on the delivery of 432 Boeing 737 Max airplanes.
• Emirates is waiting for 240 planes.
• Delta Air Lines Inc. DAL is willing to wait until 2026 and even 2027 for its first 737 MAX 10 airplane, which they ordered 100 of and were expected to be delivered over four years starting in 2025.
As of the end of September, Boeing had a backlog of 6,197 airplanes, costing just over half a trillion dollars. Unlike many businesses in this uncertain macroeconomic climate, Boeing certainly has no demand problem. It has more business than it can handle. The problem is execution and capacity, definitely not demand.
3. The Big Contract Deals Still Keep Rolling In
On Oct. 1, 2024, Boeing won $8.46 billion of multiple U.S. Department of Defense contracts for the Navy and Air Force. Boeing’s total U.S. defense contracts rose to $34 billion in October 2024, up 40% year-over-year, despite the machinist strikes.
On Nov. 7, 2024, Israel’s Defense Ministry announced a $5.2 billion deal to purchase at least 25 Israeli F-15 fighter jets out of Boeing’s St. Louis facilities.
4. End-of-Year Tax Loss Harvesting is Magnifying the Selling
Every year, tax loss and tax loss harvesting selling takes place from November through December. This involves selling stocks that are underperforming or down for the year to realize capital losses to offset capital gains in your portfolio. While this is commonplace with individual investors, it's the mutual funds and hedge funds that can make a dramatic impact on share prices.
With Boeing stock falling 46.2% YTD compared to the 23.2% gain in the S&P 500 index, there's no doubt funds are divesting Boeing stock. Tax loss selling magnifies the losses. However, the silver lining is that these stocks tend to rally back in January as funds re-enter their positions after the 30-day wash rule. For bullish investors, it pays to buy into the selling for a bounce in January.
5. BA Stock Is Nearing a Powerful Weekly Double-Bottom Support Level
A double bottom is a significant price level where a stock finds a floor and bounces. The bounce eventually exhausts as the stock falls back to the prior bottom to put in another bottom near or at the same level before it stages a higher rally. A double bottom that gets retested and bounces again forms a triple bottom. The wider the time frame chart, the more significant the double bottom levels become.
BA formed a double bottom around the $121 level in May and then October of 2022. While BA stick technically fell as low as $113.00 in June, it’s important to note that the candlestick body remained at or above the $121.00 level every time it fell below. After the second bottom formed sharply at $121.00, BA staged a massive rally to a peak of $267.54 by December 2023.
However, that was the highest peak and the head of a bearish head and shoulders pattern as each bounce peaked at a lower high. The right shoulder peaked at the weekly anchored VWAP at $196.95, literally on the nose, in July 2024. BA stock has accelerated its selling to continue to drive the neckline sharply lower. The weekly RSI has plunged to the oversold 30-band. Fibonacci (Fib) pullback support levels are at the $131.43, $121.00 double bottom, $93.90 and $89.00 pandemic low.
BA’s average consensus price target is $190.37, and its highest analyst price target sits at $250.00. It has 14 analyst Buy ratings, 9 Holds, and 2 Sell Ratings. The stock has a 3.06% short interest.
Bullish investors can consider using cash-secured puts to buy BA at the Fib pullback support levels or consider buying LEAPS at Fib extension levels to capture the upside without deploying the full capital of owning the stock. If the LEAPS are or become deep in the money (ITM), then selling front-month out-of-the-money calls activates a Poor Man’s Covered Call strategy to generate income.
The 1 Reason to Avoid Boeing Stock: Trump Tariffs Could Cripple Boeing’s Margins and Ignite a Trade War
Boeing imports nearly 30% of the parts for its airplanes from international suppliers, which adds up to a lot of parts. Boeing 787, for example, has 2.3 million parts. Boeing even has a factory in China that finalizes painting and interior work before planes are delivered to Chinese airline customers.
During his previous term, President Trump imposed tariffs on various imports, including a 25% tariff on steel and a 10% tariff on aluminum from multiple countries, including the European Union. These measures increased production costs for U.S. manufacturers, including aerospace companies like Boeing, which rely on these materials for aircraft construction.
During his 2024 re-election campaign, Trump proposed a blanket 10% to 20% tariff on all imports and a 60% to 100% tariff on products imported from China. The actual actions are a wait-and-see situation.
The imposition of tariffs led to retaliatory actions from affected countries, resulting in reduced demand for U.S. exports. For instance, Boeing experienced a decline in aircraft deliveries to China, a significant market for the company, following the previous escalation of trade tensions. In 2018, 24% of Boeing's plane deliveries were to China, but from 2019 until December 2023, the company did not make any deliveries to the country.
Analysts have expressed concerns that a renewed trade war with China could be a punishing setback for Boeing, as the company has been eager to resume sales in one of the most lucrative airliner markets in the world.
The reintroduction of tariffs could lead to increased production costs for Boeing due to higher prices for imported materials and potential retaliatory tariffs from other countries. These factors could adversely affect Boeing's competitiveness in the global aerospace market and its financial performance.
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Boeing Issues Layoff Notices to 400-Plus Workers as It Begins Drastic Cuts
https://www.theepochtimes.com/business/boeing-issues-layoff-notices-to-400-plus-workers-as-it-begins-drastic-cuts-5761154?utm_source=partner&utm_campaign=BonginoReport&src_src=partner&src_cmp=BonginoReport
Urgent Action Required: Boeing's Future is at Stake - A Open Letter To Kelly Ortberg, CEO, Boeing
By: Barchart | November 17, 2024
Dear Mr. Ortberg.
Re: Time to Fix Boeing Before It’s Too Late
Once the glory of American invention and a worldwide leader in aerospace, the Boeing Company is today at a turning moment. Being a long-term value generator and supporter of shareholder interests drives me to draw attention to the systematic mistakes endangering Boeing's future. Your leadership finds one at a crossroads: either risk supervising Boeing's ongoing slide into mediocrity or act decisively to restore its legacy.
A Legacy at Risk
Boeing's problems are self-inflicted; they have nothing to do with outside pressure or state of the market. Mismanagement, a lack of strategic vision, and giving short-term gains top priority over long-term development have destroyed public confidence and shareholder value.
• The 737 MAX Debacle:
This crisis was not simply a product failure but a breakdown in leadership, culture, and accountability. The prioritization of cost-cutting over safety has caused irreversible reputational harm, exposing systemic flaws in Boeing’s engineering ethos - a cornerstone of its success.
• A Dysfunctional Portfolio:
The commercial airplanes and defense divisions, once vital assets, have become persistent liabilities. Operational inefficiencies and unprofitability weigh heavily on the entire organization. In contrast, the services division—an example of what Boeing could be—remains shackled to the dysfunction of the broader business.
• Stagnation in Innovation:
While competitors like Airbus are pushing boundaries, Boeing appears content with the status quo. This complacency is unacceptable for a company with its resources, history, and potential to lead the aerospace industry.
Breaking Up Boeing: A Bold Yet Pragmatic Solution
The time has arrived to separate Boeing into three independent companies: Defense, Commercial Airplanes, and Services. This is a sensible idea based on the possibility to release value and propel operational excellence, not a radical one.
• Focus and Accountability:
Each business would be laser-focused on its core strengths, free to innovate and compete on its own terms. For instance, the services division could thrive without subsidizing underperforming segments.
• Operational Efficiency:
A breakup would streamline decision-making, eliminate unnecessary bureaucracy, and enable leaner, more agile operations.
• Unlocking Shareholder Value:
As separate companies, Boeing’s divisions could be valued more accurately by the market. Wall Street rewards focus, and in its current state, Boeing lacks the clarity investors seek.
• Proven Playbook:
General Electric’s successful breakup serves as a blueprint. GE Aerospace’s post-split success demonstrates that separating complex businesses can revitalize operations and create immense shareholder value.
A Call to Action
Boeing cannot afford further delays or half-measures. By failing to act boldly, the leadership risks failing its shareholders, employees, and the aerospace industry.
We have conducted an in-depth analysis of a potential breakup, evaluating the operational and financial benefits. I would be happy to share our findings with you or your advisors for further discussion. This is not just an idea—it is a well-considered and actionable path forward.
I urge you to:
• Convene the board to explore a strategic breakup.
• Commit to a clear timeline for evaluating and executing the separation.
• Communicate transparently with shareholders and employees about the rationale and benefits of this decision.
Internal & External Threats
Boeing’s decline is not just a corporate failure; it is a national concern. The United States cannot afford a weak Boeing, and neither can the global aerospace industry. Competitors like Airbus are already capitalizing on Boeing’s vulnerabilities.
The growing aerospace aspirations of China exacerbate Boeing's inner conflict. Directly targeting Boeing in the single-aisle and widebody sectors, the Commercial Aircraft Corporation of China (COMAC) is fast progressing its C919 and C929 aircraft. Boeing runs the danger of losing more market share in one of the fastest-growing aviation sectors as Air China already committed as the launch client of the C929.
Airbus keeps growing its presence in China with improved production capacity in Tianjin, therefore surpassing Boeing in both market penetration and inventiveness. This twin threat from Airbus and COMAC emphasizes how urgently Boeing needs to move strategically and forcefully to preserve its position. Without transformative action, Boeing’s market share, reputation, and legacy will erode further.
You can not only fix Boeing but restore its standing as a global leader in aerospace. The question is: will you seize it?
Sincerely,
Jim Osman
CEO & Founder
The Edge Consulting Group
A Committed Shareholder and Advocate for Long-Term Value
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$COIN & Boeing $BA neck-and-neck with the most bullish premium today
By: Cheddar Flow | November 14, 2024
• $COIN & $BA neck-and-neck with the most bullish premium today.
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$BA Bullish RSI divergence into ~5 years of trendline support is a pretty killer setup...
By: TrendSpider | November 8, 2024
• Bullish RSI divergence into ~5 years of trendline support is a pretty killer setup...
That being said, it is Boeing.
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$BA Very Large $5.2 Million ATM Call
By: Cheddar Flow | October 29, 2024
• $BA Very Large $5.2M ATM Call
This order has a further-dated expiration and was bought to open (Vol>OI)
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LATAM Orders 10 787 Dreamliners to Grow Boeing Widebody Fleet
https://ih.advfn.com/stock-market/NYSE/boeing-BA/stock-news/94788613/latam-orders-10-787-dreamliners-to-grow-boeing-wid
Boeing's stock reverses lower after announcing a $19 billion capital raise
By: MarketWatch | October 28, 2024
The capital raise, which was more than expected, included a $14 billion public offering of common shares. Bondholders cheered the news.
Shares of Boeing Co. briefly bounced, then reversed back lower in early Monday trading, after the troubled aerospace giant announced a larger-than-expected $19 billion capital raise, through public offerings of common stock and depositary shares.
Included in the offerings are 90 million shares of common stock, which based on Friday's closing price of $155.01 would be valued at $13.95 billion.
The company is also offering $5 billion of depositary shares, each representing one-twentieth of a share in newly issued convertible preferred stock.
The stock (BA) initially bounced to be up as much as 1% after the capital raise was announced, then reversed back into the red, to slump 1.7% in recent premarket trading.
Before the announcement, Bloomberg reported Boeing was set to launch a capital raise of more than $15 billion as soon as Monday.
The company filed a shelf registration to issue up to $25 billion of securities earlier this month and was widely expected to tap capital markets sooner, rather than later.
The capital raise comes as Boeing has warned of larger-than-expected quarterly losses and layoffs as a labor strike has entered its second month, and concerns that a high debt load could lead to a downgrade of the company's credit rating to "junk" status.
All three ratings agencies currently have the credit at the lowest rung of investment grade, although executives have said they are committed to retaining investment-grade status. The company has more than $57 billion of outstanding debt. A cut to junk would raise interest costs and also cut the company off from a larger pool of investors, who are only permitted to own investment-grade paper.
On Friday, the Wall Street Journal reported that Boeing was considering selling its space business as another way to deal with its operational issues and to raise money.
Read: Boeing's CEO wants to make it 'great again.' Here's what's standing in the way.
The strike by its machinists has come at an inopportune time for Boeing, which is struggling to turn itself around after a series of production missteps. The company became the focus of multiple federal investigations after a door panel blew off a 737 MAX plane during an Alaska Airlines flight in January.
Last week, the company posted a $6 billion loss for the third quarter and said it had burned through another $2 billion of cash.
"It will take time to return Boeing to its former legacy, but with the right focus and culture, we can be an iconic company and aerospace leader once again," newly installed Chief Executive Kelly Ortberg said in prepared remarks.
Read more: Boeing reveals $6 billion quarterly loss ahead of key vote by striking machinists
It was Ortberg's first quarterly earnings report since taking the helm in August. The executive is the former head of Boeing's supplier Rockwell Collins, and oversaw that company's integration with the former United Technologies and RTX (RTX) until he retired in 2021.
Striking workers rejected the company's latest offer the day it reported earnings, extending the strike into a sixth week, as the Associated Press reported.
The offer rejected included pay raises of 35% over four years. The version that union members rejected when they voted to strike last month featured a 25% increase over four years.
The union, which initially demanded 40% pay boosts over three years, said the annual raises in the revised offer would total 39.8%, when compounded. Boeing has said that average annual pay for machinists is currently $75,608.
Boeing workers told Associated Press reporters that a sticking point was the company's refusal to restore a traditional pension plan that was frozen a decade ago.
Boeing said Monday it will also offer the underwriters of the offerings options to buy an additional 13.5 million common shares and $750 million of depositary shares to cover over-allotments. That could bring in an additional $2.84 billion for Boeing.
Boeing said it plans to use the proceeds from the offerings for general corporate purposes, which could include repayment of debt, working capital, capital expenditures and funding of its subsidiaries.
Bondholders appeared to welcome the news, and the inclusion in the use of proceeds of plans to repay debt. Spreads on the company's outstanding bonds were tighter by a few basis points, as the following charts from data solutions provider BondCliQ Inc. show. The green line highlights the spread movement on Monday.
There was net buying of the bonds early in the session.
The stock has tumbled 40.5% year to date through Friday while the S&P 500 index has gained 21.8%.
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