Boeing’s quarterly profit slumps 53% amid 737 Max crisis
SEATTLE Boeing reported a 53 per cent drop in quarterly profit yesterday as the world's largest planemaker continues to grapple with the grounding of its 737 Max jets.
The company had a negative free cash flow of US$2.89 billion (S$3.9 billion) in the quarter, compared with US$4.10 billion a year earlier.
Core operating earnings fell to US$895 million or US$1.45 a share, from US$1.89 billion or US$3.58 a share a year earlier.
The profit slump capped a tumultuous week for Boeing, already in the eighth month of a deepening crisis over the grounding of its best-selling single-aisle jet following crashes.
On Tuesday, the company ousted the top executive of its crucial airplanes division, Mr Kevin McAllister, in an unexpected management shake-up related to the Max crisis that shines the spotlight on chief executive Dennis Muilenburg, whose title as board chairman was stripped earlier this month.
Boeing said it was sticking to its expectation that the Max would return to service before the year end, though the timeline was at the mercy of regulators conducting certification reviews.
But the company would delay plans to step up production on the 737 line through this year and would not hit a record-level 57 aircraft monthly until late next year, months later than previously planned. - REUTERS