In every large company, there will be a number of divisions with thousands of employees and each of them contributes to the company’s results. Sometimes there will be a disruption in one division or another, but it is always important to determine how much does that division contribute to the profits of the company or perspective is needed?
In an article by Cathy Bussewitz of the Associated Press, 3,200 workers at 3 Midwest manufacturing plants where Boeing makes military aircraft and weapons went on strike. The 3 facilities are in St. Louis, St. Charles, Mississippi and Mascoutah, Illinois. The members are part of the International Association of Machinists and Aerospace Workers or IAM.
Boeing had anticipated the strike, and the plants will remain open as the non-striking workforce can continue to support Boeing’s customers.
Boeing’s Defense, Space and Security business accounts for about 1/3 of Boeing’s revenues. Boeing’s CEO Kelly Ortberg, noted the impact will be less than the walkout of 33,000 workers who built the Max planes.
Revenue for the second quarter had improved and the company only $611 million compared to $1.44 the quarter before.
Linking to dividend paying stocks, with large companies when something happens negative happens you need to know does it affect their main profit center or other divisions? How does the company handle the disruption? who has it handled it in the past? If you have good answers for these and other questions, then you may continue to hold the stock and wait till the disruption is over and the stock bounces back.
There are more questions than answers, till the next time – to raising questions.