Boeing lost money in 2019 for the first time in 20 years

Boeing lost money in 2019 for the first time in 20 years

Boeing lost money in 2019 for the first time in 20 years

He promised to be more transparent.

The quarterly report, which includes figures for the past twelve months, lists that Boeing made losses amounting United States $636 million in the whole year of 2019. The company suspended deliveries of the plane last spring and hadn't expected the stoppage to last this long.

Boeing's full year loss in 2019 looks particularly stark in comparison to the $10.46 billion profit it reported in 2018.

The company recently reported its worst annual sales figures in decades and it handed the crown to the world's biggest aircraft manufacturer to its rival Airbus. Boeing has been working to get the jet back in the air, but the timeline has been pushed back multiple times as more technical problems have been discovered.

Boeing's focus, however, is on fixing the Max.

Boeing said last week it did not expect the MAX to return to service until mid-2020 and, given Ryanair does not take deliveries during its summer peak of June-August, it will not have the first 10 MAX planes until the autumn.

The dramatic reversal in fortunes is largely attributed to the grounding of the Boeing 737 Max following two crashes in Ethiopia and Indonesia.

"We think Calhoun is likely to choose cautious financial assumptions to avoid rolling resets that plagued prior CEO Muilenburg", von Rumohr wrote said in a report earlier this month.

The FAA has not commented on when the 737 Max will return. Some said that if given an option, they would choose another aircraft. Calhoun said on CNBC that his "stomach turned" when he saw the communications.

In Boeing's case, near-term profits and even revenues don't matter.

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". Boeing recently reversed its longstanding and determined opposition to simulator training, which will add time and expense before airlines can use the plane. Calhoun is a former General Electric and Nielsen executive who had been on Boeing's board since 2009.

Revenue tumbled to $17.91 billion, far below Wall Street's forecast of $21.70 billion, according to a FactSet survey of analysts.

The stock has lost about a quarter of its value since early March, after two deadly crashes involving the MAX jet. Boeing expects to incur further costs in 2020 that will factor into the $18.4 billion, primarily due to production snags.

During a conference call with analysts, Calhoun said he was "optimistic about the future". Some good news for the company came last week when the much-delayed 777X finally flew.

Shares traded up about 2.8% just after Wednesday's open, at $325.40 in a 52-week range of $302.72 to $446.01.

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