Bulletin: The Financial Impact On Boeing Co. From 737 MAX Grounding Is Modest So Far, But The Worst Is Still To Come

WASHINGTON D.C. (S&P Global Ratings) April 24, 2019--The impact on Boeing Co.'s earnings and cash flow from the grounding of the 737 MAX has been modest so far, at least compared to the size of the company, but the cash drain will continue to increase until Boeing is allowed to resume deliveries. The company also withdrew its financial guidance for 2019 due to uncertainty surrounding the resolution of the grounding. However, we still believe Boeing has sufficient liquidity and room within the current rating to withstand this issue. Boeing's Commercial Airplanes unit reported a 19% decline in revenues and a 17% decline in operating earnings in the first quarter of 2019 (ended March 31, 2019) from delivering 43 fewer 737

...April 24, 2019 WASHINGTON D.C. (S&P Global Ratings) April 24, 2019--The impact on Boeing Co.'s earnings and cash flow from the grounding of the 737 MAX has been modest so far, at least compared to the size of the company, but the cash drain will continue to increase until Boeing is allowed to resume deliveries. The company also withdrew its financial guidance for 2019 due to uncertainty surrounding the resolution of the grounding. However, we still believe Boeing has sufficient liquidity and room within the current rating to withstand this issue. Boeing's Commercial Airplanes unit reported a 19% decline in revenues and a 17% decline in operating earnings in the first quarter of 2019 (ended March 31, 2019) from delivering 43 fewer 737 MAXs in the quarter than last year and 50 fewer than planned. The impact would have been greater had the grounding not occurred with only a few weeks left in the quarter. Boeing stated that it booked an undisclosed (and probably modest) charge to fix the flight...

Bulletin