Boeing hit by $1bn of extra costs following deadly air disasters
Boeing missed sharply-lowered Wall Street estimates for revenue and cashflow in the first quarter and suspended its 2019 outlook, as the world's largest planemaker continued to suffer from the grounding of its 737 Max jets.
The company said it faced $1bn in increased costs in the first-quarter ended March 31, related to the 737 aircraft as it halted deliveries of the grounded planes to customers around the globe. It also said it was halting share buybacks.
The fallout of a second deadly crash within months in March has seen Boeing cut production of the jets to 42 aircraft per month, down from 52, and its operating cash flow in the first quarter was around $350m lower than a year earlier.
Boeing is also spending on developing a fix for an anti-stall software, which has been a common link in the separate chains of events leading to the two crashes within a span of five months.
The company said it would be issuing a new forecast when it has more clarity around the issues surrounding the 737 Max.
First-quarter operating cash flow declined to $2.79bn, from $3.14bn, missing Wall Street's average estimate of $2.82bn. Revenue fell 2pc to $22.92bn, below analysts' average estimate of $22.98bn. Excluding certain items, Boeing said its core earnings fell to $3.16 per share in the quarter, from $3.64 per share a year earlier. Analysts had expected Boeing to earn $3.16 per share.