United

Strike

when

Safety

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<p class="has-drop-cap">Boeing Co. (NYSE: BA) and its extensive network of suppliers are <a aria-label="grappling with the fallout (opens in a new tab)" href="https://www.reuters.com/business/aerospace-defense/boeing-suppliers-fear-long-term-jobs-hit-strike-2024-09-30/" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">grappling with the fallout</a> from a widespread machinists’ strike that has brought production to a standstill at several of the aerospace giant’s key facilities. <br><br>The <a href="https://tokenist.com/over-30000-boeing-workers-go-on-strike-stock-tumbles/" class="deco-link" rel="noopener noreferrer nofollow">labor strike, which began on September 13, 2024</a>, has halted the manufacturing of popular aircraft models and is sending ripples through the aviation industry’s supply chain, raising concerns about long-term workforce retention and financial stability.</p>
<h3 id="boeing-strike-impacts-suppliers">Boeing Strike Impacts Suppliers</h3>
<p>The strike, involving 30,000 machinists and marking Boeing’s first in 16 years, has ceased production of the 737 MAX, 767, and 777 aircraft. <br><br>This sudden halt has left suppliers like Pathfinder Manufacturing and New Tech Industries in a precarious position. Pathfinder, which operates a training program for new aerospace recruits, has already furloughed 14 of its 54 employees. Meanwhile, New Tech Industries, a specialized tooling manufacturer heavily dependent on Boeing for 85% of its business, has postponed plans to upgrade its machinery.</p>
<p>Suppliers are voicing concerns over retaining skilled workers during the production stoppage, managing cash flow with paused orders, and uncertainty about future production schedules. <br><br>Some are taking proactive measures, such as Pathfinder’s decision to continue covering health care benefits for furloughed workers in hopes of retaining them when operations resume. In a bid to diversify their client base, some suppliers are even preparing pitches to Airbus, although this is not seen as an immediate solution to their current challenges.</p>
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<h3 id="boeing-faces-multiple-challenges-other-than-labor-strike">Boeing Faces Multiple Challenges Other than Labor Strike</h3>
<p>Beyond the strike, Boeing is confronting a series of additional hurdles that are weighing heavily on its performance and stock price. <br><br>The company’s shares recently hit a 52-week low of $151.65, reflecting a 19.13% decline over the past year. This downturn comes amid ongoing production issues and heightened regulatory scrutiny.</p>
<p>The National Transportation Safety Board has <a href="https://www.komonews.com/news/local/national-transportation-safety-board-ntsb-boeing-faa-investigation-complications-collins-aerospace-incident-report-airplanes-march-12-newark-liberty-international-airport-actuators" target="_blank" aria-label="recommended immediate safety checks on the 737's rudder control system (opens in a new tab)" rel="noopener noreferrer nofollow" class="deco-link">recommended immediate safety checks on the 737’s rudder control system</a> following an incident with a United Airlines Boeing 737 MAX 8. This development adds to Boeing’s regulatory woes, which include a proposed plea deal under review related to criminal fraud conspiracy charges stemming from the 737 MAX crashes. <br><br>Furthermore, the company’s credit rating is <a href="https://www.marketwatch.com/story/boeings-bonds-are-being-snapped-up-as-stock-slides-on-strike-worries-0498ae92" target="_blank" aria-label="approaching junk status (opens in a new tab)" rel="noopener noreferrer nofollow" class="deco-link">approaching junk status</a>, and its defense division is <a href="https://www.reuters.com/business/aerospace-defense/boeing-posts-bigger-loss-defense-business-struggles-turn-around-2024-07-31/" target="_blank" aria-label="reporting losses, compounding the financial pressures facing the aerospace manufacturer (opens in a new tab)" rel="noopener noreferrer nofollow" class="deco-link">reporting losses, compounding the financial pressures facing the aerospace manufacturer</a>.</p>
<h3 id="ba-stock-price-reflects-ongoing-turmoil">BA Stock Price Reflects Ongoing Turmoil</h3>
<p>As of 9:48 AM EDT (at the time of writing) on September 30, 2024, Boeing’s stock was trading at $152.80, down $3.52 or 2.25% from the previous close. <br><br>The stock’s performance continues to lag behind the broader market, with year-to-date returns of -41.39% compared to <a href="https://tokenist.com/investing/spx-vs-spy/" rel="noopener noreferrer nofollow" class="deco-link">the S&amp;P 500’s gain</a> of 20.21%. Boeing’s market capitalization stands at $94.145 billion, with an average trading volume of 5,945,116 shares. <br><br>The company’s financial metrics further underscore its challenges, including a negative EPS of -$5.64 and a profit margin of -4.68%.</p> <iframe src="https://tokenist.substack.com/embed" width="100%" height="320" style="border:1px solid #EEE; background:white;" frameborder="0" scrolling="no"></iframe>
<p><em>Disclaimer: The author does not hold or have a position in any securities discussed in the article.</em></p>
<h3 id="br"><br></h3>
<p>The post <a rel="noopener noreferrer nofollow" href="https://tokenist.com/boeing-stock-plummets-39-ytd-as-strike-enters-third-week/">Boeing Stock Plummets 39% YTD as Strike Enters Third Week</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://tokenist.com">Tokenist</a>.</p>

Boeing Stock Plummets 39% YTD as Strike Enters Third Week

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