The US manufacturing giant lost $1bn in the fourth quarter as revenue plunged 37% after the worldwide grounding of the 737 Max. Losses amounted to $864 million, mostly related to the $4.9 billion charged the company voluntarily took due to the 737 MAX groundings shortly before it announced its second-quarter performance.
Boeing said it was taking a further hit of $9.2bn relating to compensation and the costs of freezing production of the Max and then slowing restarting it.
For the full year, Boeing reported a net loss per share of $3.41 and revenues of $76.56 billion, compared with year-ago EPS of $16.01 and revenues of $101.13 billion.
The company originally planned to have the 777X ready for 2021 but questions remain about how much scrutiny the FAA and other aviation regulators will give the program.
In October, Boeing also said it will reduce 787 production per month from 14 to 12 in late 2020.
Boeing's final frontier is also facing a challenging year: Last month, Boeing's CST-100 Starliner space taxi failed to get to the International Space Station as intended during its first uncrewed orbital test. Boeing expects to incur further costs in 2020 that will factor into the $18.4 billion, primarily due to production snags.
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The head of the Federal Aviation Administration, Stephen Dickson, told US airline officials late last week that he was content with Boeing's progress toward getting the Max back in the year, raising the possibility that the plane could fly sooner than Boeing has estimated.
"More negative news from Boeing. on our MAX deliveries", the memo read.
United States aviation giant Boeing faces a crisis over its top-selling 737 MAX, which has been grounded since March 2019 after two deadly crashes in Ethiopia and Indonesia. Some said that if given an option, they would choose another aircraft.
Textron (TXT +3.7%) will increase the number of 737 MAX simulators in production, CEO Scott Donnelley says, adding that he continues to see order interest and "a little bit of an upside on the number of MAX sims". It will be the first earnings call for Calhoun, a former General Electric and Nielsen executive who had been on Boeing's board since 2009.
Boeing's stock was up 2.2% to just over $323 per share at 10:13 a.m.in NY.
During a conference call with analysts, Calhoun said he was "optimistic about the future".
For all the troubling news from the company, Wall Street was happy that it wasn't worse.