Boeing Rises on Report It’s Exploring Sale of Space Business
Boeing shares rose as much as 1.5% as of 12:53 p.m. in New York.
(Source: NASA/Joel Kowsky)
(Bloomberg) --Boeing Co. is exploring a sale of its space division as the troubled planemaker’s new leader looks to streamline and focus the company on its core operations, according to the Wall Street Journal.
The company’s shares rose as much as 1.5% as of 12:53 p.m. in New York.
The early-stage effort includes Boeing’s Starliner space capsule and its operations supporting the International Space Station, the newspaper said Friday, citing unidentified people familiar with the matter. Boeing is expected to continue its work on the Space Launch System, the huge rocket intended to eventually carry American astronauts back to the moon for NASA, according to the report.
Boeing Chief Executive Officer Kelly Ortberg has indicated that the beleaguered aerospace manufacturer may shrink its broad portfolio to increase the company’s focus on its core commercial aircraft and defense operations. Ortberg has begun a review of the company’s businesses that he expects to conclude by the end of the year, he said earlier this week.
“We’re better off doing less and doing it better than doing more and not doing it well,” Ortberg told analysts on a call Wednesday after the company reported quarterly results. “So, we’re in the process of taking an evaluation of the portfolio.”
The review comes as Ortberg works to end a crippling, six-week labor strike that has ground production of key jetliners, including the cash-cow 737 Max, to a halt. The work stoppage is exacerbating the company’s troubled financial situation, with its credit ratings on the edge of junk and worsening cash burn that the company said earlier this week will extent into 2025.
