Boeing said its costs in the first quarter rose $1 billion due to its 737 Max planes being grounded. Boeing withdrew its full-year 2019 forecast, saying it didn't reflect the impact of the problems surrounding the 737 Max. Boeing said Wednesday that costs tied to the global grounding of its 737 Max plane jumped $1 billion in the first quarter. In all, the delay in 737 Max deliveries could cut $10 billion from Boeing's cash pile in 2019, Bloomberg reported, citing analysts before Boeing results were released. American Airlines extends grounding of Boeing 737 Max 8 jets through August 19The 737 Max fleet remains grounded and new deliveries are suspended.
2006 Getty Images(CNN) - Boeing's earnings fell 21% in the first three months of the year because of the crisis that grounded its bestselling 737 Max jet. "Due to the uncertainty of the timing and conditions surrounding return to service of the 737 Max fleet, new guidance will be issued at a future date," it said. It said it will reconsider buybacks once the 737 Max returns to service. Boeing executives said they cannot yet say when the 737 Max grounding is likely to end, or when it can again begin deliveries. The company said it is making progress in devising a software fix for the automatic safety feature on the 737 Max.
Boeing estimates that it will spend $1 billion to fix the 737 Max and has pulled its forecast of 2019 earnings because of uncertainty surrounding the jetliner, which remains grounded after two crashes that killed 346 people. Chicago-based Boeing Co. said its previously issued full-year guidance didn't account for 737 Max impacts. Boeing reported first-quarter net earnings of $2.15 billion, down $328 million or 13% from a year earlier. Investors and consumers have been keeping a closer eye on Boeing since Max jets crashed in October and March. Investors believe the market for jetliners will remain strong for many years and airlines don't have much choice for big planes — Boeing and Airbus form a duopoly, and both have huge order backlogs.
Boeing reported lower first-quarter profits Wednesday as the global grounding of its 737 MAX plane following two crashes hit results. The US aerospace giant reported $2.1 billion in profits, down 13.2 percent from same period a year ago. Revenues dipped 2.0 percent to $22.9 billion, due to a tumble in commercial plane revenues following the suspension of 737 MAX deliveries. Boeing also withdrew its full-year profit forecast, citing uncertainty surrounding the 737 MAX. The company has conducted more than 135 test flights of the fix and is working with global regulators and airlines, it said in a news release.
April 24, 2019 12:22 UTC
Henry Bloch, who with his brother founded the international tax service giant H&R Block, has died at 96. Bloch, a US philanthropist who contributed to Jewish causes, among others, died yesterday surrounded by his family, according to a memorial site. Block returned to Kansas City from World War II at 24 a decorated veteran of the Army Air Corps, having flown 32 missions as a navigator, most over Germany. It lists seven areas of focus, including “organizations that advance social and economic justice issues in the Jewish community.” Among its beneficiaries are the Jewish Community Center of Greater Kansas City, the American Jewish Committee, Jewish Family Services and the Jewish Federation of Greater Kansas City. Tom Watson, a top pro golfer, quit the club and rejoined only when the club extended membership to Bloch.
April 24, 2019 12:16 UTC
FILE PHOTO: An aerial photo shows Boeing 737 MAX airplanes parked on the tarmac at the Boeing Factory in Renton, Washington, U.S. March 21, 2019. It met sharply lowered Wall Street profit estimates, largely due to stopping deliveries of the 737 MAX jets and a slowdown in production. Boeing also booked unspecified charges related to developing a MAX software fix and pilot training. Boeing said it would issue a new financial forecast when it has more clarity around the issues surrounding the 737 MAX. First-quarter operating cash flow declined to $2.79 billion, from $3.14 billion, missing the Wall Street's average estimate of $2.82 billion.
April 24, 2019 11:53 UTC
Investors and consumers have been keeping a close eye on Boeing due to two 737 Max crashesThe Boeing logo is pictured at the Boeing Renton Factory in Renton, Washington. Image Credit: AFPBoeing is pulling its 2019 forecast over 737 Max uncertainty and says it's suspending its stock buybacks. Boeing Co. said its previously issued full-year guidance didn't account for 737 Max impacts. Investors and consumers have been keeping a close eye on Boeing due to two deadly crashes involving the 737 Max. After a slump, they skyrocketed from late December until early March when another 737 Max crashed, this one operated by Ethiopian Airlines.
April 24, 2019 11:48 UTC
Since late December 2018, Nazrawit is detained in China on suspicion of smuggling the cocaine“I didn’t give her the drugs,” Simret Kahsay, the suspect who is in jail, denies giving cocaine on China bound Nazrawit Abera. Since late December 2018, Nazrawit is detained in China on suspicion of smuggling the cocaine. “She didn’t get them from me,” Simiret told the court. Update: Police arrested Simret Kahsay (pic), who is suspected of handing Nazrawit Abera cocaine in shampoo bottles, which led to Nazrawit's detention in #China. Simiret told the court that her arrest was influenced by social media campaigns.
April 24, 2019 11:48 UTC
The State Grid Corporation of China (SGCC) is set to invest $1.8 billion in Ethiopia’s electric power transmission and distribution lines. In Beijing Prime Minister Abiy Ahmed has also met with the China Export and Credit Insurance Corporation (Sinosure). During his meeting with President Xi Jinping of China, Prime Minister Abiy has also discussed on the restructuring of Chinese debt. Reports coming from Beijing show that China has agreed to cancel all interest accumulated from its debt – estimated b/n $12 billion to $20 billion. CRCC’s current largest engagement includes connecting Ethiopia and Djibouti through the railway project.
April 24, 2019 11:37 UTC
The Customs Commission of Ethiopia today announced arresting three GIZ employees for abusing diplomatic privilege and importing worth 219.4 million birr (close to $7.7 million) goods without paying tax. “We don’t believe that GIZ, which has been doing many development projects in Ethiopia, is engaged in this illegal trade. He stated that qll the three arrested employees of GIZ are Ethiopian nationals. Then they produced fake documents with fake stamps of GIZ and transit company (ICAS) to import ten times more (4,100 kilograms of goods). In recent years contraband trade including trafficking of illegal weapons, medicines have been major headlines in Ethiopia.
April 24, 2019 10:02 UTC
“What I personally found on the crash site left me shocked. The ZAKA chief said his organization had even offered to purchase the impact site in order to gain access to it, but were rebuffed by Ethiopia. “It’s an 80-meter by 80-meter piece of land, how much could it cost?” Meshi Zahav said. “There’s a lot of work to do,” Meshi Zahav said. He surmised that Ethiopia’s opposition to opening the crash site came from concerns over the cost and effort required in overseeing such an operation, coupled with a lack of understanding of its importance.
April 24, 2019 09:00 UTC
Source: Xinhua| 2019-04-24 17:00:49|Editor: mingmeiVideo Player CloseChinese Vice Premier Han Zheng (R), also a member of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee, meets with Ethiopian Prime Minister Abiy Ahmed Ali, who is here for the second Belt and Road Forum for International Cooperation, at the Diaoyutai State Guesthouse in Beijing, capital of China, April 24, 2019. (Xinhua/Wang Ye)BEIJING, April 24 (Xinhua) -- Chinese Vice Premier Han Zheng on Wednesday met with Ethiopia's Prime Minister Abiy Ahmed Ali ahead of the Second Belt and Road Forum for International Cooperation to be held from April 25 to 27 in Beijing. China hopes that Ethiopia will make greater achievements in their national development and revitalization, Han added. For his part, Abiy Ahmed Ali said China is a true friend and the best partner of the Ethiopian and African people. Ethiopia thanks China for its long-term support and is willing to learn from China's successful experience of development, actively participate in the Belt and Road cooperation, and promote all-around bilateral exchanges and cooperation.
April 24, 2019 09:00 UTC
They’ll want to know how close engineers are to completing a fix to flight-control software at the centre of investigations into two deadly crashes involving the Boeing 737 Max. Analysts surveyed by FactSet expect Boeing to report adjusted earnings of $3.19 per share on revenue of $22.94 billion. When the market closed Tuesday, Boeing Co. shares stood 4% higher than before the October crash of a 737 Max operated by Indonesia’s Lion Air. After a slump, they skyrocketed from late December until early March when another 737 Max crashed, this one operated by Ethiopian Airlines. Analysts treated the Lion Air crash off the coast of Indonesia as a one-time event and noted confidently that Boeing was working on a software fix.
April 24, 2019 04:07 UTC
Behirwa Mega, head of the Gibe Sheleko National Park told the state-affiliated Fana Broadcasting Corporate that the animals died in a space of one-week – between 14 April and 21 April, 2019. The cause of the deaths have been aligned to suspected anthrax outbreak or toxic algae, the director of the Ethiopian Wildlife Conservation Authority told the BBC Afaan Oromoo service on Monday. The Gibe Sheleko National Park is one of the conservation area located 178 km.from A.A. & 433 km South west of regional capital, Hawassa. Two years ago, about 100 hippos died following an anthrax outbreak in Namibia’s Bwabwata National Park. Whiles an anthrax outbreak caused the deaths of a least 10 buffaloes about two weeks ago at Kenya’s Lake Nakuru National Park.
April 24, 2019 03:22 UTC
The 2019 edition of the United Nation’s World Press Freedom Day will take place in the Ethiopian capital, Addis Ababa. The main celebration of the UNESCO-led day will take place in Ethiopia between 1st to 3rd of May. With about two weeks to the D-day, the national carrier – Ethiopian Airlines – announced that it had been selected as the official carrier for the World Press Freedom Day 2019 conference. Ethiopian Airlines is very much delighted to be selected as official carrier for #2019WorldPressFreedomDay Conference. #ethiopianairlines pic.twitter.com/rQUnONsUWC — Ethiopian Airlines (@flyethiopian) April 20, 2019About the 2019 World Press Freedom DayJointly organized by UNESCO, the Government of the Federal Democratic Republic of Ethiopia and the African Union Commission the main event will be held at the Headquarters of the African Union.
April 24, 2019 01:52 UTC