Stock market analysts are telling Bloomberg News http://www.bloomberg.com/apps/news?pid=10000103&sid=a6mDNhTWfomM&refer=us they think that Boeing is ready for a long strike.
Key Quote 1, from D.A. Davidson analyst JB Groh: ” ‘You’ve got a new CEO who doesn’t want have his first order of business to be buckling to a union,’ Groh said. ‘And on the other hand you have guys that know things are better than three years ago. This could go on for quite a while.’ “
Key Quote 2, from JSA Research analyst Paul Nisbet: ” ‘This strike could go well into fourth quarter because there is such a divide between what the union is looking for and what Boeing is willing to provide,’ Nisbet said. ‘The union may be in for a surprise. I see Boeing willing to ride it out three to four months if necessary.’ “
And here’s something interesting — the strike’s making news in Africa. The Tide in Nigeria — a publication I’ve not heard of before — looks at the potential industry fall-out. http://www.thetidenews.com/article.aspx?qrDate=09/07/2005&qrTitle=Boeing%20halts%20commercial%20jet%20production%20as%2018,000%20workers%20strike&qrColumn=BUSINESS
Key Quote. from Craig Fraser, an analyst at Fitch Ratings: “Boeing’s suppliers, such Goodrich, which makes landing gear and other systems for Boeing jets, could also come under pressure. ‘Given Boeing’s size, most companies in the industry supply them in one way or another,’ said Mr. Fraser. ‘The impact on the smaller suppliers could be more serious because many of them do not have the financial strength that Boeing has.’ “
So far, the strike is only affecting a few of those suppliers. At least, that’s what they told me Wednesday
http://www.heraldnet.com/stories/05/09/08/100bus_machinists001.cfm
Key Quote, from Rosemary Brester, president of Hobart Machined Products: ” ‘The letter we got from Boeing was to continue our shipments as scheduled, and they’d keep us updated.’ “
Deep in the hearta, my friends at Vought are still plugging away, the Fort Worth Star-Telegram reports. http://www.dfw.com/mld/dfw/business/12579696.htm
Key Quote: “In an e-mail to employees, Tom Risley, Vought’s chief executive, said the company will continue working as scheduled on Boeing products at least though Sept. 16. Risley said the strike will also have no effect on Vought’s preparations for producing fuselage and tail sections for the Boeing 787.”
And down in Portland, The Oregonian http://www.oregonlive.com/business/oregonian/index.ssf?/base/business/1126177127278000.xml&coll=7 reports that one small supplier has announced a layoff, but so far others have not.
Key Quote: “Peco Inc., a Portland manufacturer of airplane parts, on Wednesday laid off 24 employees — about 12 percent of its work force, said Brian Keegan, Peco’s director of human resources. The company makes fuel access doors, internal ventilation systems and passenger service units, which house lights and oxygen masks for Boeing jets.”
The writer on that story was my old pal, Helen Jung, who used to cover Boeing when she was based in Seattle with the Associated Press. If you’ve got some free time, look up her reports from Iraq from last year. You should be able to find them somewhere on The Oregonian’s Web site.
Two other quick thoughts:
1) So far, the only aerospace suppliers to announce workforce cutbacks are the recently spun-off former Boeing plants in Spokane and Wichita; and
2) It was great to log on this morning and see a bunch of your responses — and no cheap name-calling. Thanks, guys.
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