Boeing's Q3 Earnings Report Crushed By 737 Max Groundings
Boeing's Q3 report showed drops in sales, earnings, and airplane deliveries on Wednesday as it continues to be affected by the grounding of its 737 max jets, according to The New York Times.
The 737 Max jet is Boeing's most popular product but two deadly crashes resulted in the jets being grounded for an indefinite amount of time. The company's sales dropped to $20 billion, a 21 percent decrease from a year prior. Earnings fell to $1.26 billion, a 43 percent decrease. Boeing only delivered 62 planes in the third quarter, a 67 percent decrease.
Boeing has not disclosed estimates on how much the groundings of the 737 Max will cost the company. The company hopes that the Federal Aviation Administration will clear the 737 Max jet to fly by the end of the year.
“Our top priority remains the safe return to service of the 737 Max, and we’re making steady progress,” Boeing CEO, Dennis A. Muilenburg, said in a statement. “We’ve also taken action to further sharpen our company’s focus on product and services safety, and we continue to deliver on customer commitments and capture new opportunities with our values of safety, quality and integrity always at the forefront.”
Mr. Muilenberg was recently stripped of his title as chairman and is scheduled to testify in front of Congress next week. The testimony is expected to be a heated discussion, as many lawmakers disapprove of Boeing's handling of the crisis involving the 737 Max jet. Boeing's top product has been grounded for months and its earnings are showing the result.