Boeing seeks $19B amid strike and liquidity crisis

In the United States, Boeing is seeking to raise approximately $19 billion through a stock offering as it grapples with significant liquidity issues amidst an ongoing strike. The aerospace firm plans to issue 90 million shares of common stock and $5 billion in depositary shares. The financial troubles stem from a loss of over $6 billion reported in the third quarter of 2024, marking one of the worst quarters in its history. With the company heavily burdened by $58 billion in debt, the strike has exacerbated its cash flow issues, halting the production of its popular jetliners. The recent strike, lasting over six weeks, began after factory workers rejected Boeing's latest contract offer, with 64% voting against the proposal. This labor standoff has hindered the company’s ability to deliver new planes, a vital source of cash. Reports indicate that Boeing has not posted a profitable year since 2018, and the ongoing strike significantly impacts its financial recovery efforts. Boeing's CFO mentioned that they do not anticipate positive cash flow until at least the second half of next year. Amidst these challenges, Boeing intends to utilize the net proceeds from the stock offering for diverse corporate purposes, potentially including debt repayment and funding for working capital and subsidiaries. The company's stock experienced a nearly 2% decline prior to the market opening, reflecting investor concerns over its financial stability and the ongoing labor issues. Boeing’s situation highlights a critical intersection of labor disputes and financial recovery efforts in a challenging economic climate, with the potential for further impacts on its operational capacity and market confidence.