Boeing profit slumps as 737 MAX grounding takes heavy toll
) said on Wednesday it still expects U.S. regulatory approval for its grounded 737 MAX in the fourth quarter, sending its shares higher despite a slump in quarterly profit.
Despite these risks, Boeing shares were up 0.6% at $339.13 in afternoon trading, as its steady estimate of a 737 MAX return in the fourth quarter appeared to eclipse the downside of the 787 production cut due to a drought of orders from China amid trade tensions, an analyst said. “I anticipate there will be tough questions, challenging questions, a lot of scrutiny,” he told analysts and journalists on a conference call. “And frankly, we support the scrutiny on the work that we’re doing.”Earlier in the call, Muilenburg expressed regret over instant messages, first published by Reuters on Friday, in which a former Boeing pilot describes erratic simulator behavior of software now linked to both crashes.
Asked about potential delays from overseas regulators which also must approve the MAX’s return, Muilenburg said, “it could well be that approvals will vary by jurisdiction.”Muilenburg said the company was making “daily” progress on testing the final software fix for the 737 MAX and developing related training materials, though the FAA said on Tuesday it would need at least several more weeks for review.
On Tuesday, Boeing named veteran executive Stan Deal, who had been running its two-year-old Global Services Division, to the top job at commercial airplanes.
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