New York: Boeing reported a sharp drop in third-quarter earnings due to the 737 MAX grounding but said it still expects regulatory approval this year to return the plane to service.
The company booked an additional $900 million in costs due to the MAX as it reported much lower profits than analysts expected. The top-selling MAX has been grounded since mid-March following two deadly crashes.
However, shares advanced after Boeing reiterated its timetable for MAX regulatory approval and said it expects to fully restore MAX production levels by late 2020.
“Our top priority remains the safe return to service of the 737 MAX and we’re making steady progress,” said Chief Executive Dennis Muilenburg.
Net income was $1.2 billion, down 50.6 per cent from the year-ago period.
Revenues tumbled 20.5 per cent to $20 billion, reflecting a hit from halted deliveries of the MAX.— AFP
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