Boeing gains 13% less until March and suspends its annual forecasts for the crisis of 373 MAX

Ensures that it works “exhaustively” in modifying the software of the 373 MAX and in a training program

Boeing obtained a net profit of 2,149 million dollars (1,917 million euros) in the first quarter, 13% less than a year earlier when it earned 2,477 million dollars (2,209 million euros), reported today the constructor, who has canceled its estimates for 2019 for not reflecting the impact of the 373 MAX crisis, whose flights are still suspended.

Although the company has not provided new estimates, the lack of delivery of 737 MAX, suspended after the accidents in Ethiopia and Indonesia, can have a negative impact of 1,000 million dollars (893 million euros) in the initial cash forecast of Boeing, according to a report by the North American bank JP Morgan.

The president and CEO of Boeing, Dennis Muilenburg, has ensured that the manufacturer is overturned with security to return the Boeing 737 to service and recover the trust of its customers.

“As we move forward at this difficult time for our clients, stakeholders and the company itself, our focus is on driving excellence in quality and performance and in managing a business of sustained growth based on solid and long-term fundamentals. “, has said.

From January to March, its turnover reached 22,917 million dollars (20,446 million euros), a decrease of 2% compared to the first quarter of last year, reflecting the lower deliveries of commercial aircraft to what is add the suspension of the 737 MAX units from March 15.

Operating profit fell by 21% in the first quarter to 1,986 million dollars (1,772 million euros), while the US aeronautical constructor reduced its gross operating result by 18% to 2,350 million dollars (2,097 million euros). millions of euros).

The drop in operating profit was also influenced by the increase in costs associated with the adjustment of the 737 production rates. During the quarter, the production rate of the 787 increased to 14 aircraft per month, partially offsetting the suspension of the 737 MAX program.

YOUR ORDER PORTFOLIO IS REDUCED BY ALMOST 4%

By divisions, it invoiced 9% less in its commercial aircraft business unit until March, with the delivery of 149 aircraft, and recorded a 2% increase in its revenues derived from military aircraft.

The unit Boeing Defense, Space & Security added 6,611 million dollars (5,906 million euros) and its operating result increased by 12%, to 847 million dollars (756.7 million euros). The order book of Defense, Space and Security as a whole grew by 31%.

The unit Boeing Defense, Space & Security added 6,611 million dollars (5,906 million euros) and its operating result increased by 12%, to 847 million dollars (756.7 million euros). The order book of Defense, Space and Security as a whole grew by 31%.

Boeing reduced its costs by 0.9% in the first quarter, to 18,645 million dollars (16,660 million euros). The operating cash flow was 2,788 million dollars (2,491 million euros), 11% less.

The company distributed 1,161 million dollars (1,037 million euros) in dividends in the first quarter, with an increase of 15.4% in the compensation per share with the same period of 2018.

SUSPEND ESTIMATES FOR 2019

Boeing has suspended its forecasts for 2019 due to uncertainty about the specific date and the conditions surrounding the return to service of the fleet of 737 MAX aircraft worldwide, so it will publish a new guide that reflects the impact of the paralysis of deliveries and the veto to operate with this model.

By 2019, it estimated revenue of between 109,000 and 115,500 million dollars (97,265 and 103,066 million euros), with a profit per share of between 21.9 dollars and 22.1 dollars (19 euros). As for deliveries, its forecast was between 895 and 905 commercial aircraft for 2019. In addition, it foresees an operating cash flow of close to 17,000 million dollars (15,196 million euros).

The builder says he is making “steady progress” towards final certification for a software upgrade of the Model 737 MAX, with more than 135 test flights, and its full production.

“The company continues to work closely with regulators and our partner airlines to thoroughly test the software and finalize a solid package of training and educational resources,” he says.