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Wed Apr 24, 2019, 11:00 AM

Boeing's profit falls 21% on the 737 Max crisis

Source: CNN

Boeing's profit falls 21% on the 737 Max crisis
Chris Isidore byline
By Chris Isidore, CNN Business

Updated 8:36 AM ET, Wed April 24, 2019

Gambier, Ohio (CNN Business) -- Boeing's earnings fell 21% in the first three months of the year because of the crisis that grounded its bestselling 737 Max jet.

The aircraft maker reported both lower revenue and profits compared to a year ago. Before the fatal flight that led to the jet being grounded and further deliveries of it halted, the company had been expected to report improved results in the quarter.

Boeing said it could no longer stand behind its earlier outlook, in which it said results would improve in 2019.

"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," it said.
....



Read more: https://www.cnn.com/2019/04/24/investing/boeing-earnings/index.html



https://www.seattlepi.com/news/us/article/Shadow-of-2-deadly-crashes-hangs-over-Boeing-s-1Q-13790397.php

Boeing's troubled jet prompts it to pull 2019 forecast
David Koenig, Ap Airlines Writer Updated 7:25 am PDT, Wednesday, April 24, 2019

Boeing estimates that it will spend $1 billion to fix the 737 Max and has pulled its forecast of 2019 earnings because of uncertainty surrounding the jetliner, which remains grounded after two crashes that killed 346 people.

The estimate was disclosed Wednesday in a presentation for investors as Boeing released first-quarter financial results, which missed Wall Street expectations. A spokesman said the estimate covered higher production costs over the next several years.
....

The company also said it is suspending stock buybacks. ... Boeing reported first-quarter net earnings of $2.15 billion, down $328 million or 13% from a year earlier. Revenue slid $465 million or 2%, to $22.92, on fewer deliveries of 737s.

Profit adjusted to exclude non-repeating items was $3.16 per share. Analysts surveyed by FactSet expected $3.19 per share on revenue of $22.94 billion, and both of those forecasts had been reduced considerably in the past month.
....

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This story has been corrected to show that Boeing's quarterly results missed estimates compiled by FactSet.

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Response to mahatmakanejeeves (Original post)

Wed Apr 24, 2019, 11:10 AM

1. Wow. I guess all that corner-cutting didn't results in huge profits after all, huh Boeing?

See? Stop listening to those dipshits with their MBA's. "Hey guys! I know how we can hugely increase our revenue! Let's skimp on everything that made us an industrial powerhouse in the first place, and watch the money roll in! We can't lose!"

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Response to mahatmakanejeeves (Original post)

Wed Apr 24, 2019, 11:20 AM

2. A very expensive bad decision

not developing a new design instead of pushing the 737 beyond its capabilities.

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Response to mahatmakanejeeves (Original post)

Wed Apr 24, 2019, 11:32 AM

3. Lose the trust

of the people who are filling the seats, you lose it all.

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Response to mahatmakanejeeves (Original post)

Wed Apr 24, 2019, 11:58 AM

4. It is interesting the stock price went up on releasing this news

I guess the market had baked in a worse financial scenario than what they ended up reporting.

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Response to mahatmakanejeeves (Original post)

Wed Apr 24, 2019, 12:10 PM

5. The shareholder meeting is next week.

Annual Meeting of Shareholders
April 29, 2019 09:00 AM Central Time
The Field Museum, The James Simpson Theatre, 1400 South Lake Shore Drive, Chicago, Illinois 60605-2496

Full disclosure: I do not own any shares of Boeing, at least not directly. I mean, I own an index fund, and it holds shares of Boeing.

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Response to mahatmakanejeeves (Original post)

Wed Apr 24, 2019, 12:17 PM

6. So their quest to save money by not properly training pilots turned into a financial disaster.

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Response to Initech (Reply #6)

Wed Apr 24, 2019, 01:21 PM

8. They didn't train pilots because of the cost. They didn't train them because it would have

 

pointed to the MCAS as being a band-aid on a poor design and would have increased scrutiny of the entire MAX line.

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Response to mahatmakanejeeves (Original post)

Wed Apr 24, 2019, 01:00 PM

7. Wonder if airheadbus's stock has gone up..

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Response to mahatmakanejeeves (Original post)

Wed Apr 24, 2019, 01:36 PM

9. But, all that money and work rules they saved on

by dumping the Union. Scab Company, Scab stock holders and Scab workers, what could go wrong?

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Response to mahatmakanejeeves (Original post)

Wed Apr 24, 2019, 04:46 PM

10. Boeing sponsored an event last week at--the Trump Hotel D.C.

Walter Shaub Retweeted

Boeing needs the U.S. gov't to certify its jets, including the now-grounded 737 Max.

Boeing sponsored an event last week atóthe Trump Hotel D.C.

@realDonaldTrump still owns his hotel and can profit from Boeing's sponsorship.

Via @1100Penn http://bit.ly/2W0cb1F




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Response to mahatmakanejeeves (Original post)

Thu Apr 25, 2019, 01:30 PM

11. From The Wall Street Journal.:

BUSINESS | EARNINGS
Boeing Details Financial Hit From 737 MAX Grounding
Plane maker defends safety of best-selling aircraft, promises return to service

By Doug Cameron and Andrew Tangel
Updated April 24, 2019 5:25 p.m. ET

Boeing Co. executives said they didnít know when the 737 MAX would return to service and defended the design and certification of their best-selling plane, grounded by global regulators following two fatal crashes.

The aerospace giant said Wednesday it has begun factoring in more than $1 billion in additional costs while the plane is grounded and production of additional aircraft remains scaled back.

Chief...

TO READ THE FULL STORY

https://twitter.com/dougcameron
DOUG.CAMERON@DOWJONES.COM

https://twitter.com/AndrewTangel
ANDREW.TANGEL@WSJ.COM

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