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Boeing Reports $6 Billion Quarterly Loss As Striking Workers Vote Whether To Accept Contract Offer
EVERETT, Washington – Boeing disclosed a third-quarter loss of more than $6 billion before focusing on whether striking manufacturing workers would accept a contract offer Wednesday, bringing an end to a protest that has halted airplane production for over six weeks.
Members of the International Association of Machinists and Aerospace Workers voted in union halls in Seattle and elsewhere on a deal that includes a 35% wage increase over four years. Their strike, which began in mid-September, has acted as an early test for new Boeing CEO Kelly Ortberg, who took over in August.
In his initial statements to investors, Ortberg stated that Boeing needed “a fundamental culture change,” and outlined his strategy for returning the business following years of significant losses and reputational harm.
Boeing Reports $6 Billion Quarterly Loss As Striking Workers Vote Whether To Accept Contract Offer
Ortberg stated in a statement to staff and during the results call that he wanted to “reset” management’s relationship with labor “so we don’t become so disconnected in the future.” He stated that firm leaders should spend more time on manufacturing floors to learn what is going on and “prevent the festering of issues and work better together to identify, fix, and understand root cause.”
Ortberg expressed optimism that the 33,000 striking machinists in the Pacific Northwest will vote to support the company’s most recent contract offer. Their union district was due to release the results on Wednesday night.
Ortberg, a Boeing outsider who previously led Rockwell Collins, a manufacturer of avionics and flight controls for commercial and military aircraft, believes Boeing is at a crossroads.
“Trust in our company has diminished. We have too much debt. We’ve had major failures in performance across the board, which have disappointed many of our customers,” he stated.
Ortberg did, however, underline the company’s strengths, which include a backlog of half-trillion-dollar airplane orders.
“It will take time to return Boeing to its former legacy, but with the right focus and culture, we can be an iconic company and aerospace leader once again,” Mr. Musk said.
Ortberg earlier announced large-scale layoffs (about 17,000 individuals) and a proposal to acquire enough funds to avoid bankruptcy.
“He has a lot on his plate, but he is probably quite focused on completing this negotiation. “That’s the closest alligator to the boat,” said Tony Bancroft, portfolio manager at Gabelli Funds, a Boeing shareholder.
Boeing has not had a profitable year since 2018, and Wednesday’s results were the second-worst quarter in the company’s history. Boeing announced a $6.17 billion loss for the quarter ended September 30, with an adjusted loss of $10.44 per share. Analysts polled by Zacks Investment Research predicted a loss of $10.34 per share.
Revenue was $17.84 billion, which matched Wall Street projections.
The corporation burned roughly $2 billion in cash in the quarter, weakening its balance sheet, which is burdened with $58 billion in debt. Brian West, the corporation’s Chief Financial Officer, stated that the corporation will continue to spend cash until 2025, but at a lesser pace.
Boeing shares slid 3% in afternoon trade.
The once-profitable company’s fortunes sank when two of its 737 Max jetliners crashed in October 2018 and March 2019, killing 346 people. A panel blew off an Alaska Airlines Max during a flight in January, reigniting safety worries.
Ortberg must persuade federal authorities that Boeing is improving its safety culture and is ready to ramp up production of the 737 Max, a critical step toward bringing in much-needed revenue. That cannot happen unless the striking workers return to their jobs.
Along with compensation rises, Boeing’s current contract offer includes $7,000 ratification incentives and the preservation of performance bonuses, which Boeing had hoped to abolish.
Boeing Reports $6 Billion Quarterly Loss As Striking Workers Vote Whether To Accept Contract Offer
Boeing resisted a union petition to revive a standard pension plan frozen a decade earlier. However, older workers would see a modest boost in their monthly pension payments.
At a picket line outside a Boeing factory in Everett, Washington, some strikers urged coworkers to reject the revised contract.
“The pension should have been the highest priority. We all agreed that it was our top goal, along with pay,” said Larry Best, a customer quality coordinator with 38 years at Boeing. “Now is the prime opportunity in a prime time to get our pension back, and we all need to stay out and dig our heels in.”
Best also believes that the salary raise should be 40% over three years to counteract a lengthy period of stagnating earnings, which are now mixed with increasing inflation.
“You can tell we had a great turnout today. “I’m pretty sure they don’t like the contract because that’s why I’m here,” said another picketer, Bartley Stokes Sr., who began working at Boeing in 1978. “We’re out here in force, and we’re going to show our solidarity and stick with our union brothers and sisters and vote this thing down because they can do better.”
SOURCE | AP
News
Trudeau Rocks to Taylor Swift While Montreal Burns
Prime Minister Justin Trudeau has come under fire yet again after a video surfaced on X, showing him dancing at a Taylor Swift performance while anti-Nato protestors ransacked downtown Montreal.
Trudeau attended Taylor Swift’s concert in Toronto on Friday night. Before Taylor Swift approached the stage, X shared a viral video of him dancing and singing along to the song “You Don’t Own Me.”
The image of Trudeau dancing amid violent protests in Montreal generated widespread indignation online. Some social media users even compared Trudeau to the ancient Roman dictator Nero, known for “fiddling while Rome burned.”
Don Stewart, a Member of Parliament (MP) representing part of Toronto, called out the prime minister in a post on X.
Lawless protestors run roughshod over Montreal in violent protest.
The Prime Minister dances.
This is the Canada built by the Liberal government.
Bring back law and order, safe streets and communities in the Canada we once knew and loved. pic.twitter.com/PVJvR6gtmf
— Don Stewart (@donstewartmp) November 23, 2024
“Lawless protesters run roughshod over Montreal in violent protest. The Prime Minister dances,” Stewart wrote. “This is the Canada built by the Liberal government.”
“Bring back law and order, safe streets and communities in the Canada we once knew and loved,” the MP added.
On Saturday, the day after Taylor Swift’s concert, Trudeau condemned the anti-NATO protests, calling them “appalling.”
Anti-NATO activists set off smoke bombs and marched through Montreal’s streets waving Palestinian flags. According to the Montreal Gazette, rioters set fire to automobiles and battled with police.
Pro-Palestinian protests
Protesters also tossed tiny explosives and metal objects at officers. At one point, the mob torched an effigy of Israeli Prime Minister Benjamin Netanyahu. Police used tear gas and batons to disperse the gathering, and three persons were arrested for attacking officers and impeding police operations.
Masked protesters were seen burning flares and bashing storefront windows in videos and photographs shared on social media. Pro-Palestinian protests have been taking place across Canada since the Israel-Gaza conflict began late last year.
Critics have lambasted Trudeau for doing nothing to stop the violent pro-Palestinian marches, with some claiming he has fueled anti-Israel sentiment in Canada.
On Friday, Trudeau stated that Canada would respect the orders of the International Criminal Court (ICC), which issued an arrest warrant for Mr Netanyahu, even if it meant arresting the Israeli prime leader on Canadian soil.
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News
Calgary Zoo Admits Human Error in Death of Baby Gorilla
The Calgary Zoo has admitted in a public statement that a zookeeper’s negligence caused the death of a 2-year-old baby gorilla. Eyare, a newborn gorilla, died last week after being slammed in the head by a hydraulic door.
The accident occurred when a zoo worker attempted to separate Eyare from the rest of the gorilla tribe for a solitary training session.
The gorilla died from significant head injuries, according to the zoo’s statement.
“This tragedy has struck us all in the deepest way imaginable,” Colleen Baird, director of animal care at the Calgary Zoo, said during a news conference. “Eyare’s brief but meaningful existence gave so much joy to our community, and all will sorely miss her. We will do everything possible to prevent repeat accidents.”
According to Baird, the staff member involved was immediately removed from the workplace and will be reassigned to another area of the zoo. The Calgary Zoo stated that it would take preventive steps, such as specialist personnel training and animal behavioral training, to avoid a similar incident.
Calgary Zoo Questioned
It is not the first time an animal at the zoo has died from negligence at the Calgary Zoo. A capybara was accidentally crushed by a hydraulic door similar to the one that killed Eyare in 2019.
An otter died in 2016 after being entangled in an “unauthorized” pair of jeans that a zookeeper had dropped in its enclosure. In 2013, a penguin died in “a freak accident” after swallowing a stick.
Animal Justice, a Canadian group that promotes animal welfare, has called for an independent investigation of animal safety and oversight at the Alberta facility.
“The Calgary Zoo appears to have a higher rate of animal deaths compared to other zoos, and in light of Eyare’s death there should be a systematic review of the zoo’s operations and practices, conducted transparently by the government or another outside party,” according to Camille Labchuk, the executive director of Animal Justice.
The Calgary Zoo refuted that it has more animal deaths than other zoos, emphasizing that it adheres to operating requirements and has maintained accreditation by the Association of Zoos and Aquariums’ independent Accreditation Commission since 1978.
“We love and care for more than 4,000 animals representing over 100 species that call our zoo home,” stated a Calgary Zoo representative.
“Human error-related deaths in animals are quite infrequent. We have lost two animals in the last ten years: a North American river otter in 2016 and ‘Eyare’ this week.
While rare, even one human-caused death is too many. These unfortunate instances have served as vital learning experiences, prompting us to examine and tighten protocols to provide the greatest level of care.”
Baird said at the news conference that using hydraulic doors is “common practice with accredited zoos,” adding that the facility will consider switching to alternate doors to improve safety.
The Calgary Zoo, which established the Wilder Institute in 2021, caters to nearly 4,000 creatures, including six more western lowland gorillas.
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Canada’s Lotto Max jackpot Climbs to $80M
Lotto Max in Canada has reached $80 million for only the second time in Canadian lottery history. Friday’s draw sought a winner for a $75 million pool, but the top reward remained unclaimed as of Saturday, increasing the jackpot.
Only once did the jackpot reach $80 million in September, when it broke the previous record. Before that, the prize was $75 million, a record.
The Lotto Max prize maximum was boosted earlier this year, enabling for jackpots of more than $70 million. The cap is now at $80 million.
While a greater fee may encourage more people to play, the odds of winning the lottery remain extremely low.
According to the Ontario Lottery and Gaming Corporation, the odds for a $5 ticket are around one in 33,294,800.
While there was no jackpot winner in Friday’s draw, someone did match six of the seven winning numbers, plus a bonus, earning them a payout of more than $320,000.
Lotto Max History
Lotto Max is one of three national lottery games in Canada, overseen by the Interprovincial Lottery Corporation. The game was introduced on September 19, 2009, and its inaugural draw occurred on September 25, 2009. It replaced Lotto Super 7.
The odds of winning the Lotto Max are 1 in 33,294,800. This is correct to a point but misleading.
Let’s have a look at the rules:
- Players choose 7 numbers out of 50
- Numbers cannot be repeated
- Numbers are automatically sorted into ascending order
- Each play buys 3 lines
- Each play costs $5
Seeing that players choose 7 out of 50 non-repeating numbers, the equation for the total number of possible combinations (this is different from permutations where the order in which the numbers appear is significant) when playing the Lotto Max is 50! / (7! x 43!)
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