To address liquidity needs and avoid credit rating being downgraded to junk level, Boeing has recently launched a large-scale stock sale plan.
On October 29th, Beijing time, Boeing announced the sale of 112.5 million ordinary shares at a price of $143 per share, with a net proceeds of approximately $15.81 billion from the issuance of ordinary shares. At the same time, Boeing also announced the provision of $5 billion in depositary shares, and the net proceeds from the issuance of depositary shares will be approximately $4.91 billion. Boeing stated that it plans to use the net proceeds from this issuance for general enterprise purposes.
Due to frequent safety issues and ongoing large-scale strikes by workers, Boeing has suffered severe losses since 2024, with its stock price plummeting by over 40% during the year. International credit rating agency Standard&Poor's has stated that it is considering downgrading Boeing's rating to junk level. Previously, Moody's also stated that it is considering taking similar measures.
On October 23rd, Boeing workers voted on a new salary agreement and rejected Boeing's recent proposal for a 35% pay raise over four years with 64% of the votes against it. At present, the strike by Boeing workers has entered its seventh week.
Affected by factors such as strikes, Boeing suffered a loss of $6.174 billion in the third quarter of 2024, with the loss expanding approximately 2.77 times year-on-year. The company's third quarter revenue was 17.84 billion US dollars, a year-on-year decrease of 1%; Revenue for the first three quarters was $51.275 billion, a year-on-year decrease of 8%.
At the same time, Boeing's cash flow is also under significant pressure. In the third quarter, Boeing's operating cash flow was -1.345 billion US dollars, compared to 22 million US dollars in the same period last year; In the first three quarters of 2024, Boeing's cumulative operating cash flow was -8636 million US dollars.
Recently, it was reported that Boeing is considering selling some of its space business to improve the company's tight financial situation. It has been revealed that Boeing may sell businesses related to the operation of interstellar spacecraft and support for the International Space Station, but not involving the department responsible for building space launch systems. Boeing stated in response to inquiries that it does not comment on market rumors or speculations.