Boeing supplier Spirit Aerosystems to restart production of 737 Max parts

The 737 MAX grounding in March after two crashes that killed 346 people forced Boeing to freeze production of the aircraft this month and led to the removal of former Chief Executive Officer Dennis Muilenburg

Boeing Reports Loss Of $636 Million In 2019, First Annual Loss Since 1997

That raised Boeing's estimate of the total financial hit from the crisis to $18.6 billion.

Boeing said Wednesday that it lost $1 billion in the fourth quarter, and revenue is down 37% from a year ago.

Spirit AeroSystems SPR.N on Thursday said its chief financial officer had resigned after the company identified some accounting irregularities, adding to the woes of the aero-parts maker as it grapples with the 737 MAX crisis.

Boeing's full year loss in 2019 looks particularly stark in comparison to the $10.46 billion profit it reported in 2018.

On a conference call, President and CEO David Calhoun said he believed the company could meet a goal to win regulatory approval for the planes to fly again by mid-year.

The return to service of the 737 Max has been repeatedly delayed. We are committed to transparency and excellence in everything we do. "Safety will underwrite every decision, every action and every step we take as we move forward".

Shares of Boeing rose 3% to $326.39 at Wednesday's opening bell. At the same time, Airbus clearly benefitted from Boeing's troubles, delivering 863 a record aircraft a year ago. "Markets are forward-looking and the loss must have been priced in, and possibly less than expected", Armstrong said. I will repeat this many, many times in the years ahead.




For all the troubling news from the company, investors were happy that the damage wasn't worse.

Calhoun is also likely to face questions on other commercial programmes, including whether Boeing will further trim production of the 787 Dreamliner due to lower Chinese demand, and the status of a long-discussed plane aimed at middle distances. -China trade war, prompting the company to cut production, hurting cash flow at a time when its debt is mounting.

Boeing released figures on January 14 that showed a net loss of 87 plane orders-meaning that more orders were cancelled than were placed.

Core operating loss was $2.53 billion, or $2.33 per share, compared with a profit of $3.87 billion, or $5.48 per share, a year earlier.

On Thursday, the company announced that it reached an agreed-upon production rate with Boeing, though there is not yet a restart date for production. Analysts had anticipated a much larger accounting charge after Boeing endorsed more rigorous training for Max pilots earlier this month and pushed its timeline for the plane's return back by about six months.

The Chicago-based company booked another $9.2 billion in estimated current and future extra costs for production delays, deliveries, and compensation for airlines that have cancelled tens of thousands of Max flights.

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