US, WASHINGTON (ORDO NEWS) — Boeing Co will have to borrow more money over the next six months and does not expect to pay dividends over the next several years, David Calhoun, the company’s chief executive officer, told shareholders.
The American aircraft manufacturer is struggling with the consequences of the coronavirus pandemic and the suspension of the 737 MAX.
“We know that we will have to borrow more money over the next six months in order to survive this really difficult moment, to provide the necessary liquidity for the supply chain that represents our industry,” Calhoun said. “Our main priority will be to repay this debt.”
According to him, Boeing will continue to order spare parts and services from its suppliers, so that small companies have enough orders so that they stay afloat during the recession.
“We need to support this flow of money flowing into the supply chain so that they have some predictability about how they work,” Calhoun added.
He warned shareholders that he was not sure Boeing would resume paying dividends in the medium term. “This process can take from three to five years … It will take some time before the dividends return,” the head of the company said.
Boeing faced the biggest crisis in its history after two plane crashes in Indonesia and Ethiopia, killing 346 people. The 737 MAX airliners, the best-selling Boeing liners, have been suspended worldwide since March 2019.
The coronavirus pandemic and containment measures adopted around the world further cloud the company’s prospects.
On Monday, Boeing said it would resume production of 787 Dreamliner aircraft at its South Carolina plant next week.
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