Fitch: If this is an extended strike you could see Boeing downgraded

Boeing machinists went on strike after rejecting a 25% pay raise.That is shuttered the going manufacturing plant

Here are the main points from the Boeing CFO’s statement

• Strike Impact: Strike will jeopardize recovery, impact production and deliveries

• Cash Conservation: Laser-like focus on actions to conserve cash

• Union Negotiations: Want to get back to the table and reach an agreement

• Production Goals: Getting to 38/month by end of year will take longer

• Inventory Levels: About 70 aircraft left in inventory at shadow factory

• Supply Chain Constraints: Broadly impacting the industry, affecting deliveries

• Specific Production Impacts:

• 787 deliveries below 5/month due to seat shortage

• Lower 777 deliveries due to engine supply issues

• Defense Unit: Q3 margins to be negative

Fitch is now out saying that if the strike is extended it could impact Boeings ratings (cut to junk status).

Shares are down -3.1% at $157.80. For the trading year, the stocks is down close to 40% on the year.

The consistently negative Boeing headlines takes the headline away from Intel. It’s shares are down nearly 61% on the year. The third worst performer of the Dow stocks is Nike down -27.6% in 2024

This article was written by Greg Michalowski at www.forexlive.com.