Boeing Warns It May Stop 737 Max Production (excerpt)
(Source: BBC News; posted June 24, 2019)
Boeing is warning that it might have to halt production of the 737 Max if grounding continues much longer.
The company reported its largest-ever quarterly loss of $3.4bn (£2.7bn) on Wednesday due to the troubled plane.
If hurdles with regulators worldwide continue, Boeing said it would consider reducing or shutting down production of the 737 Max entirely.
However, Boeing boss Dennis Muilenburg is confident the plane will be back in the air by October.
"As our efforts to support the 737 Max's safe return to service continue, we will continue to assess our production plans," Mr Muilenburg told investors in a conference call. "Should our estimate of the anticipated return to service change, we might need to consider possible further rate reductions or other options, including a temporary shutdown of the Max production."
Boeing's entire fleet of flagship 737 Max planes was grounded in March after issues with the model were linked to an Ethiopian Airlines flight crash that killed 157 people.
Five months earlier, 189 people were killed when a Boeing 737 Max operated by Lion Air crashed. (end of excerpt)
Click here for the full story, on the BBC News website.
Boeing Reports Second-Quarter Results (excerpt)
(Source: Boeing Co.; issued July 24, 2019)
CHICAGO --- The Boeing Company reported second-quarter revenue of $15.8 billion, GAAP loss per share of ($5.21) and core loss per share (non-GAAP)* of ($5.82), reflecting the previously announced 737 MAX charge (which reduced revenue by $5.6 billion and earnings by $8.74 per share) as well as lower 737 deliveries partially offset by higher defense and services volume.
Boeing recorded operating cash flow of ($0.6) billion and paid $1.2 billion of dividends.
The previously issued 2019 financial guidance does not reflect 737 MAX impacts.
Due to the uncertainty of the timing and conditions surrounding return to service of the 737 MAX fleet, new guidance will be issued at a future date. Boeing is working very closely with the FAA on the process they have laid out to certify the 737 MAX software update and safely return the MAX to service.
Disciplined development and testing is underway and we will submit the final software package to the FAA once we have satisfied all of their certification requirements. Regulatory authorities will determine the process for certifying the MAX software and training updates as well as the timing for lifting the grounding order.
"This is a defining moment for Boeing and we remain focused on our enduring values of safety, quality, and integrity in all that we do, as we work to safely return the 737 MAX to service," said Boeing Chairman, President and Chief Executive Officer Dennis Muilenburg. "During these challenging times, teams across our enterprise continue to perform at a high level while delivering on commitments and capturing new opportunities driven by strong, long-term fundamentals." (end of excerpt)
Click here for the full earnings statement, on the Boeing website.