Wednesday, July 24, 2019

Boeing Is Officially Tracked Here -- July 24, 2019

The debacle is tracked here 'cause I think this ends badly for Boeing. 


December 16, 2019: Boeing's 737 MAX production line stands down just weeks before Christmas. Boeing announced today it will suspend production; no re-start date given. Company running out of storage room. FAA, who must certify the aircraft, shows no sense of urgency. Boeing removes Boeing 737 MAX from schedule until April, 2020.

October 14, 2019: Pilots for Southwest Airlines predict the 737 MAX will be delayed beyond 4Q19.  On a bank holiday, Boeing was down half a percent today.

September 1, 2019:  the FAA says it needs a few more weeks to complete the review.

July 31, 2019; GE cash flow: hit by 737 MAX groundings. Link here

July 29, 2019:

July 29, 2019:

July 26, 2019: Southwest Airlines exits Newark, NJ, due to 737 MAX grounding;

Later, 1:10 p.m. CT: My hunch is that Boeing execs realize that even if the MAX 737 is certified 100% safe, "no one" will believe them. This is a trial balloon. By the end of the year, BA will end production of the MAX 737.

Later, 10:02 a.m. CT: take out Boeing, CAT, and Apple today and the Dow would be up 30 points, maybe more, depending on the algos.

Original Post
Not unexpected:

Yet to come: investor lawsuits. 

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Wow, look at this huge miss: link to Investor's Business Daily -- Zacks actually thought BA would report an EPS of almost $2.00/share, from a prior view for a loss of 56 cents/share. They should have stuck with their original estimate. Actual results: a loss of almost $6/share.
Boeing Earnings:
Estimates: Zacks changed its forecast to EPS of $1.85, implying analysts are excluding Boeing 737 Max charges, from a prior view for a loss of 56 cents per share. Revenue was seen falling 26% to $17.98 billion.
Results: Loss of $5.82 a share, including Boeing 737 Max charges, on revenue of $15.75 billion, down 35 %. Free cash flow was negative at $1.01 billion. Commercial aircraft revenue sank 66% to $4.72 billion. Defense and space revenue rose 8% to $6.61 billion. Global service revenue grew 11% to $4.54 billion.
More from Boeing:
  • Commercial aircraft revenue: sunk 66% to $5 billion (rounded).
  •  Non-commercial aircraft revenue: $7 billion (rounded). 
  • Negative cash flow. Wow.
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