Boeing considers dividend cut, layoffs amid cash drain

March 20, 2020
Coronavirus has curtailed plane deliveries as the aerospace giant continues to work on ending the MAX grounding, report Andrew Tangel and Doug Cameron for the Wall Street Journal.

WASHINGTON - Boeing Co. is considering cutting its dividend and possibly laying off workers at its jetliner plants, people familiar with the matter said, as America’s largest manufacturer grapples with an unprecedented disruption to the global airline industry, report Andrew Tangel and Doug Cameron for the Wall Street Journal Continue reading original article.

The Intelligent Aerospace take:

March 20, 2020-Boeing stock has dropped nearly 70% year to date and has dropped below $100 a share for the first time since 2013. CNBC's Jim Cramer said earlier this week that “We must save Boeing so to speak, both from the side that the airlines are going to get money, but if you don’t have maybe one of the, if not the most important, company in the country solvent, then I think a lot of things are going to go wrong."

Boeing has asked Washington for financial assistance for the American aerospace industry.

"We’re leveraging all our resources to sustain our operations and supply chain," Boeing said in a release on Tuesday. "We continue to assess additional levers as we navigate the current challenges and position the industry for the long term. As reported last week, drawing on our delayed draw loan term was a prudent step to increase our liquidity and ease some of the significant near-term pressures on our business. We filed an 8-K today to formally disclose that draw down."

Related: Boeing seeks $60 billion in government aid for aerospace industry hit by coronavirus

Related: The long-forgotten flight that sent Boeing off course

Related: Boeing lists 'five milestones' to hit before Max returns to the skies

Jamie Whitney, Associate Editor
Intelligent Aerospace

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