This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Boeing Strike Would Hurt, but How Much?

A month-long strike would force the company to defer about $3 billion in revenue, industry consultant Scott Hamilton estimates. A month of production includes 31 Boeing 737s, seven Boeing 777s, a 747 and a 767, he says.

With most of those aircraft headed to airlines outside the U.S., that would cause an approximately 2% drop in U.S. exports -- which totaled $164 billion in June -- and would boost the trade deficit.

Additionally, a strike would further jeopardize the delivery schedule for the 787, already a source of embarrassment due to repeated delays. The first flight is now scheduled for the fourth quarter of 2008, with the initial delivery in the third quarter of 2009. Of course, future delays could be blamed on strikers.

At Northwest (NWA), the U.S. launch customer for the 787, the company is "disappointed by the continued timing slide in the delivery of our first aircraft, but have no additional news from Boeing on further delays," said spokeswoman Tammy Lee Stanoch. Northwest has orders for 18 aircraft, with the first delivery in the fourth quarter of 2009, delayed from August 2008.

Nevertheless, it is clear that Boeing has calculated what the results of its "no more talks" position might be.

First, although IAM workers are unlikely to approve the contract, it is possible they vote not to strike. In 2002, workers rejected a contract, but did not strike. In 2005, they walked out for 28 days. The union's constitution requires that two thirds of voters must support a strike before a walk-out. The high bar recognizes that strikes are arduous and demand a firm commitment.
2 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
LCC $0.00 0.00%
BA $132.49 0.00%
AAPL $95.18 0.00%
FB $117.43 0.00%
GOOG $692.36 0.00%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs