New Boeing CEO Kelly Ortberg is set to share his vision for the troubled manufacturer during his first earnings call. Over 32,000 striking machinists are expected to vote on a new contract proposal that could potentially end the more than five-week work stoppage. Analysts are cautiously optimistic about the proposal passing, which could help Boeing resume production and reduce its cash burn.
Ortberg, who took over in August, is expected to discuss the company’s future and production targets for the next year. Boeing suppliers are also anticipating the strike ending with a new agreement. Ortberg has hinted at significant changes ahead, including a 10% reduction in the global workforce, about 170,000 employees.
Boeing is projected to post a nearly $10-per-share loss for the third quarter and report charges of about $5 billion, prompting the company to raise as much as $25 billion in debt or equity. The company is also focused on mending ties with workers and stabilizing the supply chain. The strike is costing Boeing $1 billion a month, leading to concerns from the aerospace industry and suppliers about the potential impact on their businesses.
Overall, Ortberg’s first earnings call will provide insight into Boeing’s future direction, potential restructuring, and efforts to recover from recent challenges. Investors and analysts will be looking for clues about what a smaller Boeing could look like and which programs or assets may be affected by the changes ahead.
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