Boeing Falls to Full-Year Loss
January 29 2020 - 8:18AM
Dow Jones News
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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