NEWS: Boeing Sees Profit Slashed By 50% - And Added More Negative News...
Boeing also announced other negative news
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October 23, 2019 - by Dominic Gates for seattletimes.com
The 737 MAX crisis slashed Boeing's third-quarter profit in half compared with a year earlier, but the company absorbed the financial hit without any additional write-offs to cover the expenses of compensating customers and continuing to build 737 jets that it cannot deliver.
However, Boeing added $900 million to its estimated costs for producing the 737, due to the extended reduction in the production rate during the grounding of the jet.
That will reduce the 737's profitability and cash flow in future quarters and brings Boeing's estimated total cost of the MAX grounding so far to $9.2 billion.
Boeing also announced other negative news affecting the larger widebody jets built at its Everett plant: because of a rapidly shrinking order backlog on the 787 Dreamliner, Boeing will cut production of that jet at the end of 2020 from the current 14 jets per month to 12 per month.
Boeing said it will maintain that lower rate for approximately two years
Bank of America analyst Ron Epstein in an interview said that seems optimistic given the slow order rate and that he expects production will later be cut further....
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