Shares of industrial and transportation companies slid as the coronavirus pandemic continued to take a toll on sector leaders.
Boeing said it will cut more jobs and review jetliner production rates in an effort to stop bleeding cash as the pandemic roils global air travel. Executives said Boeing wouldn't likely generate cash in 2021, when the plane maker expects to hand over half of its some 450 undelivered 737 MAX jets that have been grounded for nearly two years.
The company expects to reduce its headcount by another 11,000, including 7,000 layoffs, on top of almost 20,000 already announced, and end next year with around 130,000 employees, about 40% less than when it merged with McDonnell Douglas in 1997.
In addition, the troubled aviation industry continued to weigh on General Electric, which reported another quarter of shrinking revenue, but the conglomerate posted a smaller loss and was able to generate cash from its industrial operations, sending its shares higher Wednesday.
Layoffs and cost cutting have helped GE weather the coronavirus pandemic's damage to the commercial airlines that ultimately buy its jet engines. Belt tightening has also helped reverse losses in GE's long-struggling power turbine unit.
Shares of UPS slid Wednesday after the package delivery giant's profit and revenue beats weren't quite good enough to extend their recent run up given concerns over the margin outlook for its largest domestic business.
Write to Amy Pessetto at amy.pessetto@dowjones.com
(END) Dow Jones Newswires
10-28-20 1704ET
