Boeing is said to weigh asset sales to raise much-needed cash

Boeing (NYSE:BA) is deciding whether it will sell assets such as underperforming business units to raise cash as the plane maker seeks to overcome its recent crises, The Wall Street Journal reported Sunday, citing people familiar with the matter.

The company’s board last week met at the company’s headquarters in Arlington, Va., where they questioned division heads and combed through reports on the condition of each unit.

Boeing (BA) Chief Executive Kelly Ortberg, who was brought in to fix the company’s operations in early August, wasn’t there for the discussions. He was participating in the company’s negotiations with leaders of its biggest union to end a strike.

The proposed agreement reached Saturday between management and the union would give machinists a 35% raise over four years.

A vote on Wednesday to ratify the agreement and bring union employees back to work still leaves Boeing (BA) in a difficult financial position. Industry observers and analysts have speculated that Boeing (BA) may need to file for bankruptcy or split into separate companies to save itself, the Journal reported.

Ortberg took steps to raise at least $10 billion in cash and to cut jobs to reduce losses that have magnified Boeing’s (BA) manufacturing woes and disrupted a sprawling supply chain.

The company has worked to divest from a rocket-making joint venture with defense contractor Lockheed Marting (LMT). Boeing (BA) also oversees troubled programs such as a refueling tanker for the U.S. military and the replacements for Air Force One.

The company last week sold off a small defense subsidiary that makes surveillance equipment for the U.S. military, the Journal reported, citing people familiar with the deal.

Ortberg on Wednesday will make his first public comments as CEO, when the union will vote on the new contract and Boeing (BA) will disclose third-quarter financial results. It warned of charges in the billions of dollars and a $6 billion loss for the three-month period through September 28.

Getting workers back on the job is a key step in generating cash flow as Boeing (BA) delivers finished planes to customers amid significant demand for air travel. The company had 6,197 unfilled orders for commercial planes as of the end of September.