Boeing enters losses for the cost of the 737 MAX crisis, which amounts to more than 16,000 million

Boeing closed the year 2019 with losses of 636 million dollars (578 million euros), which means that the American aeronautical manufacturer enters ‘red numbers’ for the first time since 1997 as a result of the 737 MAX crisis, which will have a total cost of more than 18,000 million dollars (16,360 million euros).

The company’s total revenues decreased 24% last year compared to 2018, to 76,559 million dollars (69,584.4 million euros). On the other hand, expenditures stood at 72,093 million dollars (65,525 million euros), 11% below those of 2018.

Boeing President and CEO David Calhoun has acknowledged that they have «a lot of work to do» and that the company is focused on safely returning the 737 MAX to service and «restoring the confidence that the Boeing brand represents in the aeronautical market. » In that sense, he pointed out that security will be present «in every decision, every action and every step taken.»

In addition, he stressed that «fortunately,» the «strength of the overall business portfolio provides financial liquidity to follow a thorough and disciplined recovery process.»

In the last quarter of the year, Boeing lost 1,010 million dollars (917 million euros), with revenues of 17,911 million dollars (16,279 million euros), representing a decrease of 37% over the same period of 2018.

At the end of 2019, Boeing’s order book reaches 463,403 million dollars (421,186 million euros), 5% less than a year earlier, with orders for some 5,400 commercial aircraft, valued at 376,593 million dollars (342,285 million euros).

LESS THAN HALF IN DELIVERIES

The blockade of the 737 MAX has also reduced the deliveries of Boeing commercial aircraft during the year, as they have been reduced by 52.8% compared to the 806 made in 2018, when it reached its record, up to 380.

The revenues of the commercial aircraft division were reduced by 44%, to 32,255 million dollars (29,316 million euros).

The company has highlighted that the commercial aircraft division has been affected by 737 MAX and the additional charges of 2,600 million dollars (2,363.14 million euros) destined to possible compensation to customers who have suffered consequences for the stoppage of the MAX.

The estimated cost for the production of the 737 increased by 2,600 million dollars (2,363 million euros) during the last quarter. In addition, the suspension of the production of the MAX and the gradual resumption of this will generate additional costs of about 4,000 million dollars (3,635 million euros) that will add to the expenses at the beginning of 2020.

To this we add the 9,200 million dollars (8,361.8 million euros) in costs for the 737 MAX previously announced, so the total cost would be more than 18,000 million dollars (16,360 million euros).

For its part, the Boeing Defense, Space & Security division registered revenues of 26.227 million dollars (23.837 million euros), 1% less than in 2018.