Boeing says it will need to borrow more money on coronavirus fallout

[turbinetree]

Source: Reuters

BUSINESS NEWS APRIL 27, 2020 / 10:50 AM / UPDATED 3 HOURS AGO

(Reuters) - Boeing Co (BA.N) will need to borrow more money over the next six months and does not expect to pay dividends again for years, as the U.S. plane maker wrestles with industry fallout from the coronavirus and the grounding of its 737 MAX jet, chief executive Dave Calhoun told shareholders on Monday.

“We know we’re going to have to borrow more money in the next six months in order to get through this really difficult moment, to provide the right liquidity to the supply chain that represents our industry,” Calhoun said during the company’s virtual annual general meeting.

“Our first priority is going to be to pay that back, the principle and the interest that goes with it.”

Boeing would continue ordering parts and services from its suppliers to ensure the smaller companies have enough business to keep them afloat during the downturn, he said.

“We have to keep that flow of money going to the supply chain so that they have some predictability around how they operate.”

Reporting By David Shepardson in Washington and Allison Lampert in Montreal, Editing by Franklin Paul and Andrea Ricci

Read more: https://www.reuters.com/article/us-boeing-agm/boeing-says-it-will-need-to-borrow-more-money-on-coronavirus-fallout-idUSKCN22921Q?il=0

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Boeing in March called for a “minimum of $60 billion in access to public and private liquidity, including loan guarantees, for the aerospace manufacturing industry.” The company has not said if it will seek government loans or tap a $17 billion fund for national security-related companies.

Boeing on Monday also said each of the company’s 12 board nominees received a majority of votes from shareholders. Two proxy advisers, Glass Lewis and Institutional Shareholder Services (ISS), had recommended that Boeing shareholders vote against key board members to show objections to the company’s handling of the 737 MAX crisis.

Calhoun did not repeat the company’s long-standing timetable of a mid-year return to service approval by regulators for the 737 MAX that has been grounded since March 2019 after two fatal crashes killed 346 people. Reuters reported last week a key certification test flight may not occur until late May or later. “We remain confident in the MAX,” Calhoun said.



So what does the engineering union (SPEEA) at Boeing think of this and what Boeing wanted from Embraer before they Boeing backed out

[Orrex]

1. Well, Boeing is entitled to $1200 like every other "person"

Holy shit. If I ran my household as sloppy as Boeing is run, I'd be declaring bankruptcy twice a month!

[relayerbob]

2. Their issues have less to do

with C-vid as incompetence. Too big to fail? Buh-bye!

[relayerbob]

3. Don't forget their multi-billion dollar manned spacecraft

program is in deep shit right now, due to numerous fatal flaws also. They were very lucky in getting the test spacecraft back in one piece, and audits have shown many more failures than were identified at that time.

[yonder]

4. I have several spare invisible hands of the marketplace to slap them around with.

[33taw]

5. Businesses that don't anage their money should fail.

[iluvtennis]

6. F Boeing. They're a billion dollar company -let them take care of themselves. Give $ to the ppl. nt

[flying_wahini]

7. And people in Hell want ice water......

Good luck with that.

[marble falls]

8. Only if Boeing shows who and how their mistakes were made on the 737.

[Bengus81]

9. Oh boo fucking hoo,they were going to spend $4 billion buying out Embraer but it fell through

So evidently they have a line of credit out the wazoo. Their CEO said just a couple of months ago they have 2 billion or so in cash laying around. Those asshats took every $$ that Wichita and Kansas lawmakers threw their way for decades and then blew town for SC and cheaper wages.

[turbinetree]

10. Boeing did that for two years with Washington and SC, and one of only reasons why they went to SC

was that SC did some things with the wetlands and taxes there to build that building for the 787, and then Boeing started using and pitting state against state, and they knew they were going to SC, because of the tax incentives, and then when it came to unionizing in SC............they had a vote, and they the workers were told we will give you what the IAM is getting in Washington and elsewhere................so you don't need a union................so whenever they get a raise in Washington, they give it them in SC..........just keep the union out, plus the fact of SC right to work laws for less...........