Tag: Boeing

Boeing (BA) earnings Q3 2020 results: Another rough quarter

Boeing said Wednesday it is planning to shed 7,000 more jobs to cope with a sharp downturn in air travel and jetliner demand due to the coronavirus pandemic and the prolonged grounding of its best-selling plane.

Boeing’s CEO Dave Calhoun reiterated expectations that regulators would soon lift their ban on the 737 Max, a grounding that was put in place in March 2019 after two fatal crashes killed 346 people.

The company’s losses have mounted as struggles from the 737 Max crisis were exacerbated by the pandemic. The ban has meant Boeing can’t deliver the planes to airline customers.

Boeing posted a fourth-consecutive quarterly loss, but the third quarter results came in better than Wall Street estimates.

Chicago-based Boeing swung to a net loss of $466 million in the third quarter from a profit of $1.2 billion a year earlier. That was on sales of $14.1 billion, down 29% from a year ago but slightly ahead of analysts’ expectations for $13.9 billion in revenue. Sales declines were most pronounced in the commercial aircraft unit where revenue fell 56% from $8.2 billion in the third quarter of 2019 to $3.6 billion.

The company is focused on cutting costs as it prepares for a long slump in demand.

Calhoun told employees the company aims to have a staff of 130,000 by the end of 2021, after attrition, retirements and buyouts. Earlier this year, Boeing targeted a 10% cut to its staff, which stood at 160,000 people at the start of the year.

About 19,000 employees are leaving Boeing this year, but the company is adding some jobs in its more stable defense unit.

“As we align to market realities, our business units and functions are carefully making staffing decisions to prioritize natural attrition and stability in order to limit the impact on our people and our company,” Calhoun said in a staff note. “We anticipate a workforce of about 130,000 employees by the end of 2021. Throughout this process, we will communicate with you every step of the way.”

Boeing’s airline customers are desperate to save cash and predict a recovery in air travel to 2019 levels is years away. In the first nine months of 2020, Boeing lost a net 381 orders for new planes. Boeing’s own estimates show that the pandemic could diminish industry demand for more aircraft for the next decade.

Boeing has slashed production rates and targets as demand has dropped. Earlier this month, it announced it would consolidate production of its 787 Dreamliner, a wide-body plane used mostly for international routes, at a single facility in North Charleston, South Carolina, instead of operating lines there and in the Seattle area.

Here is how Boeing’s third-quarter earnings report did compared with estimates: 

  • Loss: $1.39 per share, vs. $2.52 a share expected by Refinitive’s consensus estimates
  • Revenue:  $14.1 billion, vs. $13.9 billion expected

Boeing shares were down 3.3% in afternoon trading.

Boeing reported negative free cash flow of $5.08 billion, better than analysts’ estimates and than the previous quarter’s

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Boeing to cut 7,000 jobs more jobs, as plane maker reports $449M loss

David Koenig, Associated Press
Published 12:08 p.m. ET Oct. 28, 2020

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A Boeing 777X airplane takes off on its first flight with the Olympic Mountains in the background at Paine Field in Everett, Wash., in this Jan. 25, 2020, file photo . Boeing will cut more jobs as it continues to lose money and revenue during a pandemic that has smothered demand for new airline planes. The company said Wednesday, Oct. 28, that it expects to cut its workforce to about 130,000 employees by the end of next year, down 30,000 from the start of this year. (Photo: Ted S. Warren, AP)

Boeing will cut more jobs as it continues to bleed money and its revenue fades during a pandemic that has smothered demand for new airline planes.

The company said Wednesday that it expects to cut its workforce to about 130,000 people by the end of next year, or 30,000 fewer than it began with in 2020. That is a far deeper cut to its workforce than the 19,000 jobs the company said it planned to trim just three months ago.

Boeing Co. talked about the more severe job cuts on the same day it reported a $449 million loss for the third quarter, a swing from the $1.17 billion it earned in the same period last year. The loss was still not as bad as feared.

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Revenue tumbled 29% to $14.14 billion.

Boeing has been whipsawed by a drop in revenue after its 737 Max was grounded in March 2019 following two deadly crashes, and then a pandemic that has caused air travel to plunge and left airlines with more planes than they need.

It has been a bruising stretch for one of America’s preeminent manufacturers. Thursday marks the second anniversary of the first Max crash, Lion Air flight 610, which plunged into the Java Sea just off the coast of Indonesia killing all 189 aboard.

The pandemic has intensified the pain.

The company recently lowered its forecast of demand for new planes over the next decade by 11% because of the coronavirus pandemic. Some analysts think even that scaled-back forecast was too rosy.

Boeing, which along with Europe’s Airbus dominates the aircraft-building industry, has seen orders and deliveries of new planes shrivel this year in the face of the pandemic and the grounding of the Max, its marquee aircraft.

Boeing has cut production as deliveries slow and cancellations snowball, leaving it with too many workers.

The Max was Boeing’s best-selling plane, but now the company has several hundred in storage that it is unable to deliver.

Boeing has spent about two years overhauling flight-control software and computers on the plane after an automated anti-stall system pushed the noses down before crashes in Indonesia and Ethiopia that killed a combined 346 people.

The company expects regulators will allow the resumption

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Deeper job cuts at Boeing as COVID-19 throttles air travel

Boeing will cut more jobs as it continues to bleed money and its revenue fades during a pandemic that has smothered demand for new airline planes.

The company said Wednesday that it expects to cut its workforce to about 130,000 people by the end of next year, or 30,000 fewer than it began with in 2020. That is a far deeper cut to its workforce than the 19,000 jobs the company said it planned to trim just three months ago.

Boeing Co. talked about the more severe job cuts on the same day it reported a $449-million loss for the third quarter, a swing from the $1.17 billion it earned in the same period last year. Still, the loss was not as bad as feared.

Revenue tumbled 29% to $14.14 billion.

Boeing has been whipsawed by a drop in revenue after its 737 Max was grounded in March 2019 following two deadly crashes, and then a pandemic that has caused air travel to plunge and left airlines with more planes than they need.

It has been a bruising stretch for one of America’s preeminent manufacturers. Thursday marks the second anniversary of the first Max crash, Lion Air Flight 610, which plunged into the Java Sea just off the coast of Indonesia, killing all 189 aboard.

The COVID-19 pandemic has intensified the pain.

The company recently lowered its forecast of demand for new planes over the next decade by 11% because of the pandemic. Some analysts think even that scaled-back forecast was too rosy.

Boeing, which along with Europe’s Airbus dominates the aircraft-building industry, has seen orders and deliveries of new planes shrivel this year in the face of the pandemic and the grounding of the Max, its marquee aircraft.

Boeing has cut production as deliveries slow and cancellations snowball, leaving it with too many workers.

The Max was Boeing’s bestselling plane, but now the company has several hundred in storage that it is unable to deliver.

Boeing has spent about two years overhauling flight-control software and computers on the plane after an automated anti-stall system pushed the noses down before crashes in Indonesia and Ethiopia that killed a combined 346 people.

The company expects regulators will allow the resumption of deliveries before the year ends, when it will again ramp up production. Cowen analyst Cai von Rumohr said that suggests Boeing believes that airlines will still take the plane, or that it is willing to whittle down its inventory more slowly.

Last week Boeing’s biggest customer, Southwest Airlines, said that it is looking at the A220 Europe’s Airbus made. Southwest’s fleet consists entirely of Boeing 737s, and the airline was forced to cancel thousands of flights last year because of the Max grounding.

Boeing CEO David Calhoun said Wednesday that Southwest’s fleet will be mostly Boeing “for a long time coming … we hope it stays all Boeing.”

“The Max has cost us a lot of money” and has forced Boeing to borrow “to make up for the fact that

Continue reading

Deeper job cuts at Boeing as pandemic throttles air travel

Boeing will cut more jobs as it continues to bleed money and its revenue fades during a pandemic that has smothered demand for new airline planes.

The company said Wednesday that it expects to cut its workforce to about 130,000 people by the end of next year, or 30,000 fewer than it began with in 2020. That is a far deeper cut to its workforce than the 19,000 jobs the company said it planned to trim just three months ago.

Boeing Co. talked about the more severe job cuts on the same day it reported a $449 million loss for the third quarter, a swing from the $1.17 billion it earned in the same period last year. The loss was still not as bad as feared.


Revenue tumbled 29% to $14.14 billion.

Boeing has been whipsawed by a drop in revenue after its 737 Max was grounded in March 2019 following two deadly crashes, and then a pandemic that has caused air travel to plunge and left airlines with more planes than they need.

It has been a bruising stretch for one of America’s preeminent manufacturers. Thursday marks the second anniversary of the first Max crash, Lion Air flight 610, which plunged into the Java Sea just off the coast of Indonesia killing all 189 aboard.

The pandemic has intensified the pain.

The company recently lowered its forecast of demand for new planes over the next decade by 11% because of the coronavirus pandemic. Some analysts think even that scaled-back forecast was too rosy.

Boeing, which along with Europe’s Airbus dominates the aircraft-building industry, has seen orders and deliveries of new planes shrivel this year in the face of the pandemic and the grounding of the Max, its marquee aircraft.

Boeing has cut production as deliveries slow and cancellations snowball, leaving it with too many workers.

The Max was Boeing’s best-selling plane, but now the company has several hundred in storage that it is unable to deliver.

Boeing has spent about two years overhauling flight-control software and computers on the plane after an automated anti-stall system pushed the noses down before crashes in Indonesia and Ethiopia that killed a combined 346 people.

The company expects regulators will allow the resumption of deliveries before the end of the year ends, when it will again ramp up production . Cowen analyst Cai von Rumohr said that suggests Boeing believes that airlines will still take the plane, or that it is willing to whittle down its inventory more slowly.

Last week Boeing’s biggest customer, Southwest Airlines, said that it is looking at the Europe’s Airbus A220 made. Southwest’s fleet consists entirely of Boeing 737s, and the airline was forced to cancel thousands of flights last year because of the Max grounding.

Boeing CEO David Calhoun said Wednesday that Southwest’s fleet will be mostly Boeing “for a long time coming … we hope it stays all Boeing.”

“The Max has cost us a lot of money” and has forced Boeing to borrow “to make

Continue reading

Boeing to cut thousands of additional jobs through 2021 as it prepares for long air travel slump

  • Boeing’s CEO Dave Calhoun told employees the company aims to have a staff of 130,000 by the end of 2021.
  • Earlier this year, Boeing targeted a 10% cut to its staff, which stood at 160,000 people at the start of the year.
  • The announcement came after the company reported third-quarter results, which were ahead of estimates but show Boeing’s struggles in the pandemic.



a group of fighter jets fly through the air: Grounded Boeing 737 MAX aircraft are seen parked in an aerial photo at Boeing Field in Seattle, Washington, July 1, 2019.


© Provided by CNBC
Grounded Boeing 737 MAX aircraft are seen parked in an aerial photo at Boeing Field in Seattle, Washington, July 1, 2019.

Boeing, which is already shedding 16,000 jobs, said Wednesday it will cut thousands more through the end of next year as it prepares for a long slump in air travel and aircraft demand because of the coronavirus pandemic.

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Boeing’s CEO Dave Calhoun told employees the company aims to have a staff of 130,000 by the end of 2021. Earlier this year, Boeing targeted a 10% cut to its staff, which stood at 160,000 people at the start of the year.

About 19,000 employees are leaving Boeing this year, but the company is adding some jobs in its more stable defense unit.

“As we align to market realities, our business units and functions are carefully making staffing decisions to prioritize natural attrition and stability in order to limit the impact on our people and our company,” Calhoun said in a staff note. “We anticipate a workforce of about 130,000 employees by the end of 2021. Throughout this process, we will communicate with you every step of the way.”

The announcement came after the company reported third-quarter results, which were ahead of estimates but show Boeing’s struggles in the pandemic.

Here are the numbers: 

  • Loss: $1.39 per share, vs. $2.52 a share expected by Refinitive’s consensus estimates
  • Revenue:  $14.1 billion, vs. $13.9 billion expected

Boeing shares were up fractionally in premarket trading.

Boeing reported negative free cash flow of $5.08 billion, better than analysts’ estimates and than the previous quarter’s negative $5.6 billion, according to FactSet.

The pandemic’s impact on air travel demand, which is still not back to half of last year’s levels, has worsened Boeing’s crisis, which started two years ago with the first of two crashes of its best-selling 737 Max.

Regulators are at the tail-end of the planes’ review but have still not signed off on them, preventing Boeing from delivering them to customers and crimping its cash flow as a result.

Boeing executives will detail their results on a 10:30 a.m. ET call.

Boeing to reduce workforce to fewer than 130,000 by the end of 2021

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Boeing to cut thousands of additional jobs through 2021 as it adjusts to long-term drop in air travel demand

Boeing on Wednesday said it would cut thousands of additional jobs through the end of next year as it scrambles to cut costs in the pandemic.



a group of fighter jets fly through the air: Grounded Boeing 737 MAX aircraft are seen parked in an aerial photo at Boeing Field in Seattle, Washington, July 1, 2019.


© Provided by CNBC
Grounded Boeing 737 MAX aircraft are seen parked in an aerial photo at Boeing Field in Seattle, Washington, July 1, 2019.

The company’s revenue came in ahead of estimates but the company is still struggling as virus and a plunge in air travel hurts demand for new aircraft.

Boeing’s CEO Dave Calhoun told employees that the company aims to have a staff of 130,000 by the end of 2021. Earlier this year, Boeing targeted a 10% cut to its staff, which stood at 160,000 people at the start of the year.

The company reported third-quarter results ahead of the market open.

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American and Southwest airlines should improve as business travel returns: Analyst

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Here are the numbers: 

  • Loss: $1.39 per share, vs. $2.52 a share expected by Refinitive’s consensus estimates
  • Revenue:  $14.1 billion, vs. $13.9 billion expected

Boeing was also expected to report negative free cash flow of $5.4 billion, slightly less than the previous quarter’s negative $5.6 billion, according to FactSet.

The pandemic’s impact on air travel demand, which is still not back to half of last year’s levels, has worsened Boeing’s crisis stemming from two fatal crashes of the 737 Max. Regulators are at the tail-end of the planes’ review but have still not signed off on them, preventing Boeing from delivering them to customers and crimping its cash flow as a result.

Boeing executives will detail their results on a 10:30 a.m. ET call.

This story is developing. Please check back for updates.

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