No - Boeing has not taken any COVID bailout money. The rates they are paying are so low that carrying even $63B on the balance sheet is affordable at less than $650 million per quarter.
The stock price is still at about $200 per share with a market cap of about $117B - there has also been speculation that they will do a large equity issue to fix the balance sheet. They may be waiting in hopes the share price goes higher but even at current prices the dilution is not that bad.
They also still have $25B of Cash on the balance sheet. While they would never do this - there was speculation that the equity raise would be about $30B - that plus the cash on hand could almost totally wipe out there debt - which they would be crazy to do so given the low rates they are paying.
We also must remember that Boeing has radically reduced it's overhead in Commercial Airplanes (unfortunately at a very high human cost) so that when 737 MAX and 787 Deliveries get up to speed again even at 5 per month on the 787 and the MAX gets past the ones that are being delivered on future credits/deposits - Commercial Aircraft should be cash flow positive again.
$2.6Bn interest payments PA is a pretty significant drag on finances I'd suggest.
I'd also ask you for some data to back up "Boeing has radically reduced its overhead in Commercial Airplanes"...
I'm sure they'd love to have.
There are certainly actions that can be pointed to about what they're going to do
(as opposed to have already done)
And whilst delivery rates remain a fraction of their peak, overheads on a per unit basis are going to continue to be a massive challenge (same for Airbus).
I've been there ....
I'm pretty sure the assertion that Boeing can manage without bailout is legitimate - their scale is just huge.
But on the flipside, it feels a bit wishful to try and brush the financial issues under the carpet...
Just my view
Here is the overhead reduction - 19% of payroll https://www.seattletimes.com/business/b ... ses-mount/
They will be down to 131,000 or thereabouts - they have not been that low in the last 20 years. From what we have heard it was just not production line workers - but unfortunately a lot of high paying middle management positions.https://www.statista.com/statistics/268 ... om-boeing/
Firstly let me say that I support your view that Boeing is NOT a financial basket case in need of like support.
As a point of order, Production workers are NOT overhead.
Their numbers and cost are directly connected to the volume of output.
Those reductions are necessary to even have a hope of avoiding unit cost increases.
But the challenge really lies in those non-production related costs - the cost of running the business.
Many of these are fixed, so if output halves, their impact on unit cost doubles.
The reason I mentioned things that Boeing are going to do
, is because the planned rationalisation of production locations (like 787 in CHS) is directly aimed at this cost component.
Even then, halving the facility space whilst halving output, still won't really move the unit cost needle.
I don't share your optimism that Boeing are slashing unit costs.
I suspect reality is the opposite at this moment in time.
Saving grace - Airbus have the same problems of protecting unit cost whilst volume reduces.
In the 2020 Q3 results they claimed to be in the process of delivering the savings commensurate with the volume reduction.https://www.airbus.com/newsroom/press-r ... sults.html
Airbus’ EBIT Adjusted of € -641 million (9m 2019: € 3,593 million(1)) mainly reflected the reduced commercial aircraft deliveries and lower cost efficiency. It also included € -1.0 billion of COVID-19 related charges. The necessary steps have been taken to adapt the cost structure to the new levels of production and the benefits are materialising as the plan is executed
Of course Airbus have not experienced the output reductions that Boeing have...
I feel that the journey for Boeing to becoming awash with cash with killer unit costs is a lot longer than you are predicting...
They will get there eventually, I'm sure