$4.9 billion hit: Boeing braces for biggest quarterly loss in its history

$4.9 billion hit: Boeing braces for biggest quarterly loss in its history

eTurboNews Syndication:

Boeing said that the business is bracing for the largest quarterly loss in its history once the world’week s largest plane-maker reports its financial results next.

Boeing’s revenue will need a $4.9 billion hit in the next quarter as a result of worldwide grounding of its 737 MAX jets after two fatal crashes.

According to the ongoing company, lost sales, reduced production and the compensation payments it had been expecting to give up to now would cost the plane maker $6.6 billion.

The sum will not include any provision for lawsuits likely to be filed by the grouped groups of the victims.

Average estimates of analysts published by Refinitiv suggested Boeing would book a per-share profit of $1.80 for the next quarter. The charge, which involves $8.74 a share, will get rid of the aviation giant’s profits. It could reduce revenue and pre-tax earnings by $5.6 billion in the quarter, Boeing said.

Many global airlines have grounded their fleets of 737 MAX aircraft since mid-March, following crashes in Indonesia and Ethiopia that killed 346 people.

Boeing LEADER Dennis Muilenburg wrote on Twitter that the business remained centered on safely returning the 737 MAX to service.

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“The MAX grounding presents significant challenges for the customers, supply and company chain,” he tweeted.

The US-based airplane manufacturer said it assumes the 737 MAX will go back to service in america along with other countries in autumn. Boeing also said that it turned out forced to cut future services due to uncertainty on the timing of deliveries of 737 MAX planes.

An investigation into MAX crashes has revealed nearly all Boeing 737s had a non-working alert for faulty sensor data. The ongoing company scheduled the issue to be fixed 3 years after discovering it and didn’t inform the FAA until among the planes crashed.

Author: George Taylor

Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.