On Wednesday, Boeing reported a massive loss for the quarterly reports. This has happened as the costs keep piling up for this aerospace conglomerate after its flagship aircraft 737 Max was grounded post 2 major fatal crashes.
In the early trading scenario, the shares for Boeing were very volatile. They slipped by a whopping 1.1 percent as compared to its previously recorded close at $373.07 per share. The company delivered around 104 fewer aircraft to its customers during the 2nd quarter as compared to the previous year. The mass-produced deliveries of the company’s 737 Max airplane have been halted for now.
Dennis Muilenburg, the President, CEO, and Chairman of the company mentioned during a press release that this is actually a deciding point for the Boeing aircraft. He also added that this company has remained focused on the safe return of manufacturing the 737 Max and coming back to business. The results now suggest that the loss experienced by the company for each share was $5.82 while the overall revenue was $15.8 Billion.
Wall Street actually expected the Boeing to record earnings of around $1.87 per share with revenue close to $18.6 Billion, as confirmed by the analytical survey conducted by Refinitiv. But these estimates are in no way comparable because of the last-minute 737 Max charge.
Last year in the very same quarter, the earnings for Boeing dropped around 275 percent. This was when Boeing earned only $3.33 per share. Not just that, Boeing’s overall revenue for this quarter represented a drop that was around 35 percent from the 2nd quarter of the year 2018. This was when the company managed to earn revenue of $24.8 Billion.
This loss reflects around $4.9 Billion charge which was due to the global grounding of the company’s 737 Max aircraft. This halt was placed after the airplane experienced 2 fatal crashes and killed around 346 people. Furthermore, the company announced its charge just last week that was worth $8.74 per share in the revenue earnings. Boeing added in the reports that these costs were actually partially offset due to the services volume and higher defense.
For now, the aircraft 737 Max is grounded since the mid of March 2019. Currently, the company is testing all the changes required to its software for 737 Max. However, it is unclear about how long it will take until the airplane returns back to flight.