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

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

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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.
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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.