Boeing to Suspend Production at its Facilities Due to COVID-19 Pandemi

Published on: 24 Mar, 2020

The Boeing Company (NYSE: BA) is one of the companies that suffered most losses from the COVID-19 pandemic. The stock of the Company fell to about $105 a share (as of Monday) from highs of $315 a share just one month ago.

On Friday, the Company announced several decisions to support the company as it navigates through the COVID-19 pandemic while ensuring the company is positioned for the industry’s recovery. Decisions include:

  • CEO Dave Calhoun and Board Chairman Larry Kellner will forgo all pay until the end of the year. 
  • The company will suspend its dividend until further notice.
  • Boeing will extend its pause of any share repurchasing until further notice.  The company previously suspended its stock buyback program in April of 2019.

And on Monday, Boeing revealed that its temporary suspending production operations at its Puget Sound area facilities in light of the state of emergency in Washington state and the company’s continuous assessment of the accelerating spread of the coronavirus in the region.

“This necessary step protects our employees and the communities where they work and live,” said Boeing President and CEO Dave Calhoun. “We continue to work closely with public health officials, and we’re in contact with our customers, suppliers and other stakeholders who are affected by this temporary suspension. We regret the difficulty this will cause them, as well as our employees, but it’s vital to maintain health and safety for all those who support our products and services, and to assist in the national effort to combat the spread of COVID-19.”

Boeing plans to begin reducing production activity immediately and projects the suspension of such operations to begin on Wednesday, March 25, at sites across the Puget Sound area. The suspension of production operations will last 14 days, during which Boeing will continue to monitor government guidance and actions on COVID-19 and its associated impacts on all company operations.

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Danny Abramov

Email: danny@financialinsiders.com

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