NEW YORK: Boeing shares slumped on Monday on the company's weakened profit outlook after it announced last week it would cut production of 737 planes following two deadly crashes.
Bank of America Merill Lynch predicted the"disruption" to the 737 line would last six to nine months, up from the prior estimate of three to six months. The bank also trimmed its profit forecast for this year and over next four years. "We believe Boeing's ability to generate returns above its cost of capital will remain strong well into the next decade and most likely beyond," said Morningstar.
S&P warned that deliveries in some markets could be delayed after regulators in the EU, Canada, China and elsewhere said they would review Boeing's fixes before allowing the planes to resume normal operations.
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