Boeing Reports Lower Profits Amid 737 MAX Crisis

Boeing on Wednesday reported lower first-quarter profits as the global grounding of its 737 MAX plane following two crashes hit earnings

New York, (APP - UrduPoint / Pakistan Point News - 24th Apr, 2019 ) :Boeing on Wednesday reported lower first-quarter profits as the global grounding of its 737 MAX plane following two crashes hit earnings.

The results are the first since the company entered crisis mode with the March 10 crash of an Ethiopian Airlines jet, which along with an October Lion Air crash claimed 346 lives.

The US aerospace giant reported $2.1 billion in profits, down 13.2 percent from same period a year ago due in part to $1 billion in costs associated with 737 program.

Revenues dipped 2.0 percent to $22.9 billion.

Boeing also withdrew its full-year profit forecast, citing uncertainty surrounding the 737 MAX.

Shares rallied in pre-market trading, likely reflecting relief that damage from the 737 MAX crisis thus far was not worse.

Regulators ordered the global grounding of the plane shortly after the second crash, a move that has also forced the company to halt new deliveries of its most-ordered plane, denting revenues.

Analysts in recent weeks had trimmed their forecast for Boeing earnings in light of the crisis but will scrutinize Wednesday's results to see whether they need to further lower expectations.

In addition to the $1 billion in 737 program costs, Boeing said it booked charges associated with a software fix to the jet's anti-stall system that is thought to have been a factor in both accidents.