Boeing looking to sell space business: report
Boeing has faced financial and regulatory headwinds this year, as well as an ongoing labor strike
Market investor likes Tesla stock, but advises against Boeing
Fitz-Gerald Group principal Keith Fitz-Gerald looks at the top and bottom stocks before Monday's market open.
Aerospace giant Boeing is reportedly exploring the sale of some portions of its space business as it considers ways to streamline its operations.
The Wall Street Journal reported Friday, citing people familiar with the matter, that Boeing is considering selling portions of its NASA business, including its troubled Starliner space vehicle and operations that support the International Space Station.
The potential divestment would exclude the Boeing unit that's building NASA's Space Launch System, as well as its commercial and satellite businesses, the Journal reported.
"Boeing doesn't comment on market rumors or speculation," a Boeing spokesperson told FOX Business.
BOEING CEO SAYS 'TRUST IN OUR COMPANY HAS ERODED,' CALLS FOR 'FUNDAMENTAL CULTURE CHANGE'
Boeing may sell off portions of its space business, according to a Wall Street Journal report. (Paul Hennessy/Anadolu via Getty Images / Getty Images)
Boeing's Starliner program has faced development delays and technical problems, with more than $1.8 billion in private cost overruns.
Two NASA astronauts who Boeing brought to the International Space Station earlier this year remain stuck there after the Starliner suffered from helium leaks and thruster issues. They are expected to return on rival SpaceX's Crew Dragon craft in February. Starliner returned successfully to Earth without the astronauts after it was deemed too risky for them to return on the spacecraft.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BA | THE BOEING CO. | 143.41 | -2.67 | -1.83% |
Boeing's space business has included a focus on building and maintaining modules of the International Space Station for decades. The ISS is scheduled to be retired in 2030 and NASA is considering replacing it with privately owned space stations.
SATELLITE MADE BY BOEING A 'TOTAL LOSS' AFTER SPACE 'ANOMALY'
Boeing is reportedly considering selling its Starliner business. (Richard Tribou/Orlando Sentinel/Tribune News Service via Getty Images / Getty Images)
The Journal reported that Boeing and Lockheed Martin are separately looking to sell their rocket launch joint venture, the United Launch Alliance, which is focused on national security launches and operates independently of its two parent companies.
Boeing is facing an ongoing strike by 33,000 machinists that has halted production of its best-selling 737 Max jets as well as 767 and 777 airliners.
BOEING STRIKE COSTLIEST IN ECONOMIC DAMAGE SO FAR IN 2024
NASA astronauts Suni Williams and Butch Wilmore were the flight crew on Boeing's Starliner capsule, which is recovering from a series of issues. (NASA / Getty Images)
The company's new CEO, Kelly Ortberg, who began serving in that role in August, said on a quarterly call with analysts on Wednesday that he wants Boeing to downscale the number of programs in its portfolio.
"We're better off doing less and doing it better than doing more and not doing it well," Ortberg said on the call, though he didn't specifically reference Boeing's space division.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Reuters contributed to this report.