BA Boeing Co

By Doug Cameron and Andrew Tangel 

Boeing Co. reported an annual loss of $636 million for 2019 as mounting costs from the 737 MAX crisis sent the aerospace giant to its worst financial performance in two decades.

The Chicago-based company said Wednesday it will make another cut in 787 Dreamliner production and booked more charges on its military tanker and space-taxi programs to underline the broader challenges facing new Chief Executive David Calhoun and his team.

Boeing booked another $9.2 billion in charges and associated costs to cover potential compensation to MAX customers as well as higher expenses from reducing and then halting production of the jetliner following two fatal crashes.

Mr. Calhoun said last week that he was confident the MAX will re-enter service, but the biggest crisis in the company's 103-year history has derailed its product strategy -- losing share to rival Airbus SE -- and strained its balance sheet.

The full year compared with a profit of $10.46 billion in 2018.

Boeing burned through $2.2 billion in cash during the quarter.

Shares rose more than 1% to $320.56 in pre-open trade.

(END) Dow Jones Newswires

January 29, 2020 08:03 ET (13:03 GMT)

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