Boeing sells small defense research unit to Thales

Boeing reached an agreement this month to sell a small defense subsidiary that makes surveillance equipment for the US military, the company said on Sunday, as the airline tries to shore up its struggling finances. keep up

Boeing said in a statement that Digital Receiver Technology, which makes wireless equipment used by intelligence services, will be sold to Thales Defense & Security, an affiliate of Thales SA, the world’s largest electronic defense company. Europe. Boeing did not disclose the terms of the deal.

The Wall Street Journal reported earlier Sunday that Boeing had agreed to a transfer deal for a small defense subsidiary, without naming the specific unit.

Boeing said last week it may raise up to $25 billion in equity and debt securities as its investment credit rating is threatened by production delays, safety concerns and a month-long strike at an aircraft manufacturing plant in the SA.

Striking workers at Boeing plants on the West Coast, mostly in Washington state, will vote Wednesday on a new contract proposal that could end a strike that has grounded production of 737 planes. MAX, 767 and 777.

Boeing’s ongoing strike, involving more than 30,000 workers from September 13, 2024, has had a significant impact on the company’s financial position and credit ratings. Workers are on strike for higher wages and better benefits, and the situation is becoming increasingly tense as Boeing faces a possible financial crisis due to operational disruptions and rising costs.

Analysts estimate that a prolonged strike could cost Boeing between $3 billion and $3.5 billion in cash flow over about 50 days. The immediate financial consequences are dire, with the company suffering a loss of over $3 billion in the first month of the strike alone.

In addition, the strike threatens Boeing’s efforts to overcome past problems, including safety issues and production delays.

Rating agencies such as S&P Global and Moody’s have expressed concern that the prolonged strike could delay Boeing’s recovery path and even lead to a downgrade of its credit rating.