FX.co ★ Boeing Considers Asset Sales To Boost Cash Flow And Streamline Operations : Report

Boeing (BA) is considering selling certain assets to raise essential funds, particularly by offloading non-core or underperforming segments, according to a report from the Wall Street Journal that cites informed sources.

Recently, Boeing concluded a transaction involving a minor defense subsidiary that manufactures surveillance equipment for the U.S. military, as per the Journal.

In recent financial performance reviews, Boeing's CEO has instructed the heads of various divisions to evaluate and present the worth of their units, the report noted.

In mid-October, Boeing announced a $10 billion supplemental credit agreement secured with financial institutions including BofA Securities, Inc., Citibank, N.A., Goldman Sachs Lending Partners LLC, and JPMorgan Chase Bank, N.A.

On Wednesday, October 23, striking members of the IAM union will cast their votes on Boeing's new offer, which proposes a 35% salary increase over four years. The details of the potential strike resolution, including the date workers might resume duties if the vote is affirmative, will be part of the voting process, as stated by the International Association of Machinists and Aerospace Workers Local 751 on Saturday.

The latest offer also includes a $7,000 ratification bonus, a revived incentive plan, and increased contributions to workers’ 401(k) retirement plans. This includes a one-time contribution of $5,000 plus up to 12% in employer contributions. However, the offer does not reinstate the traditional pension plan that was eliminated for union members a decade back.

Over 33,000 members of the IAM at Boeing facilities in Washington, Oregon, and California have been on strike since September 13.

Earlier this month, Boeing revealed plans to reduce its workforce by approximately 10%, impacting about 17,000 employees, due to ongoing financial setbacks and production holdups linked to the machinists' strike. The company forecasts a considerable loss in the third quarter attributable to the IAM walkout and incurred costs in its commercial aircraft and defense sectors.

Boeing retracted its wage proposal to the roughly 33,000 IAM members, citing that the union did not earnestly consider its proposals after two days of negotiations.

Last month, Boeing made what it described as its 'best and final' offer to the workforce, suggesting a 30% pay raise over four years—below the 40% requested by the union.