Share to linkedin... [+] as it reported a 51% slide in its third-quarter profit and acknowledged stresses in its widebody business, where it has enjoyed a sizable lead over competitor Airbus.
The raised production cost estimate brings the total costs to Boeing from the 737 MAX crisis to over $9 billion. In the second quarter the company booked a pretax charge of $5.6 billion to account for the compensation it will provide its airline customers and lessors over the grounding of the plane and delays in deliveries.
The company continued to hemorrhage cash due to the loss of income from deliveries of the MAX, with a free cash outflow of $2.89 billion. Revenue fell 21% to $19.98 billion due to a 41% slide in revenue from its core commercial airplanes business to $8.2 billion. The weak results in the commercial business were partially offset by robust defense and services sales.
“We remain hopeful that airplanes will be part of the trade solution,” Muilenburg said. A commitment to buy billions worth of Boeing aircraft is expected to be part of a negotiated settlement to lower China’s trade surplus with the U.S.
What a pity! If you have a not functional product, that might cause loss wisdom
Boeing increased its estimate of the financial damage of the grounding of the 737 MAX for murdering 346 people by $900 million. Fixed it.
Why is their stock price still so high?