Boeing profit slumps 53 percent as MAX grounding takes heavy toll

New York Post Finance 1 month ago

Boeing cut production of its flagship Dreamliner and delayed the arrival of a successor to its 777 mini-jumbo on Wednesday, piling new pressures on a rejigged senior management team as the continued safety grounding of its 737 MAX sliced third-quarter profits.

The world’s largest planemaker said it was also delaying plans to step up production on its money-spinning 737 line in the Seattle-area, and would not hit a record-level 57 aircraft monthly until late 2020, months later than previously planned.

Despite the trio of industrial setbacks, Boeing shares were up about 2 percent in premarket trading as its steady estimate of a 737 MAX return in the fourth quarter appeared to be eclipsing the downside of the 787 production cut, an analyst said.

“The 787 cut appears to be mostly tied to China trade negotiations, which at least have the potential to improve over the next 12-months,” said Seaport Global analyst Josh Sullivan.

The profit slump and fresh setbacks capped a tumultuous week for Boeing, already in the eighth month of a deepening crisis over the grounding of its best-selling single-aisle following deadly crashes.

On Tuesday, the company ousted the top executive of its crucial airplanes division, Kevin McAllister, in an unexpected management shakeup related to the MAX crisis that senior industry sources say puts Chief Executive Dennis Muilenburg squarely in the firing line in the event of further revelations or if the company fails to recover from the MAX crisis.

Muilenburg’s title of board chairman was stripped earlier this month.

“Our top priority remains the safe return to service of the 737 MAX, and we’re making steady progress,” Muilenburg said in a statement accompanying the results. Boeing has begun taking steps to increase safety oversight in its industrial operations and at the board level, he added.

Its timeline of a fourth-quarter MAX return compares to a January target from European regulators, while major US carriers United, Southwest, and American were all scheduling without the MAX until next year.

Boeing also said there was “no significant change” to estimated potential concessions and other considerations to airline customers related to the 737 MAX grounding, part of the $8 billion price tag Boeing estimated for the MAX earlier this year.

On Wednesday, the US manufacturer reported a 53 percent drop in quarterly profit and had a negative free cash flow of $2.89 billion in the quarter, compared with a positive free cash flow of $4.10 billion a year earlier.


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One America News Network › Finance › 1 month ago
(Reuters) - Boeing Co reported a 53% drop in quarterly profit on Wednesday, as the world's largest planemaker was hurt by the grounding of its best-selling 737 MAX jets.
The New York Times › Finance › 1 month ago
Boeing Co cut production of its flagship Dreamliner and delayed the arrival of a successor to its 777 mini-jumbo on Wednesday, piling new pressures on a rejigged senior management team as the continued safety grounding of its 737 MAX sliced third...
CBC › Finance › 1 month ago
Boeing Co reported a 53 per cent drop in quarterly profit on Wednesday as the world's largest planemaker was hurt by the grounding of its bestselling 737 Max jets.
Reuters › Finance › 1 month ago
Boeing Co cut production of its flagship Dreamliner and delayed the arrival of a successor to its 777 mini-jumbo, piling new pressures on a rejigged senior management team on Wednesday as the continued safety grounding of its 737 MAX sliced third...
CNBC › 1 month ago
American Airlines doesn't expect the Boeing 737 Max to return to service until Jan. 16, 2020, as the grounding of Boeing's bestseller drags on.
Washington Times › 3 weeks ago
Orders and deliveries of new Boeing planes remain depressed eight months into the grounding of the company's 737 Max, leaving Boeing far behind Airbus, its chief competitor.
Chicago Tribune › Finance › 1 month ago
Southwest Airlines said Thursday that third-quarter profit rose 7% on record revenue despite taking a hit from the grounding of its Boeing 737 Max aircraft fleet.
One America News Network › Finance › 1 month ago
MONTREAL (Reuters) - Air Canada on Tuesday reported lower-than-expected third-quarter profit, hurt by lower flight capacity in the wake of the grounding of Boeing Co's 737 MAX airplanes
The New York Times › Finance › 1 month ago
Air Canada on Tuesday reported lower-than-expected third-quarter profit, hurt by lower flight capacity in the wake of the grounding of Boeing Co's 737 MAX airplanes.
Chicago Tribune › Finance › 3 weeks ago
Chicago-based Boeing said Tuesday that an aircraft-leasing company replaced an order for 15 Max jets with an order of five 787s. Another customer dropped an order for three Max planes after ordering a larger Boeing 777 earlier this year.
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