Boeing obtains a $1.5 billion line of credit, citing financial uncertainty. The move comes during a worldwide grounding of the company's 737 Max airplane following two deadly crashes.
A partially completed Boeing 737 Max airplane is pictured at the Boeing manufacturing facility in Renton, Wash., in 2015. By Douglas MacMillan Douglas MacMillan Reporter covering corporate accountability Email Bio Follow April 29 at 10:03 PM Boeing has secured a $1.5 billion line of additional credit, a sign the plane maker is taking more caution with finances as sales of the 737 Max remain on hold.
Boeing’s business requires a large amount of cash to produce new planes and invest in operations, and its ability to generate cash has been stifled by the worldwide grounding of the 737 Max. The company continues to produce 42 new 737 jets a month, but cannot sell any 737 Max planes to customers until global regulators are satisfied that Boeing has improved their safety.
In a statement, Boeing spokesman Gordon Johndroe said the added line of credit “provides adequate financial flexibility to address financial market uncertainty, emerging business needs, as well as take advantage of potential strategic business opportunities should they arise.” Last week, Boeing said it paused its plan to buy back $18 billion in stock from investors, a move that freed up more cash to use in the business. Boeing also took the unusual step of withdrawing its guidance, or estimate of future financial results, because it doesn’t know how many planes it could sell this year.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Boeing Says 737 MAX Grounding Will Cost More Than $1 BillionBoeing said it would take an initial hit of more than $1 billion on the global grounding of the 737 MAX jetliner following two fatal crashes as the plane maker suspended full-year financial guidance.
Leer más »
Boeing abandons financial outlook, sees $1 billion in extra cost on 737 MAXBoeing Co on Wednesday abandoned its 2019 financial outlook, halted share buybac...
Leer más »
Boeing says it will take $1 billion hit on grounding of the 737 Max jetBoeing says it will take $1 billion hit on the grounding of the 737 Max jet.
Leer más »
Boeing suffers $1B hit over 737 MAX crisisThe aviation giant announced on Wednesday it has suffered $1 billion after two deadly Boeing 737 MAX crashes. The company officials said they need to win back consumers' trust again.
Leer más »
Boeing 737 MAX return to service paced by regulators, customers: Boeing CEOThe return of the Boeing Co 737 MAX to service in the wake of two deadly crashes...
Leer más »
Boeing's troubled jet will cost $1 billion to fixBoeing 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.
Leer más »
Boeing's stock swings higher after Q1 results, which include $1 billion increased cost for 737 businessBoeing Co.'s commercial airplanes business suffered first-quarter declines in profit, revenue and margin in the wake of groundings of its 737 MAX planes...
Leer más »
Boeing abandons 2019 outlook after 737 MAX groundingsBoeing Co missed sharply-lowered Wall Street estimates for revenue and cashflow ...
Leer más »
Boeing suffers rare drop in earnings amid uncertain timeline for return of 737 MaxBoeing reported a drop in earnings and sales, as the company acknowledged that concerns over the safety of its 737 Max airplanes are taking a toll on its business.The aerospace giant said first-quarter earnings fell 10% to $3.75 per share, their biggest year-over-year decline since late 2017.
Leer más »
Boeing CEO backs 737 Max amid crisis: 'We understand our airplane' and 'remain fully confident'This year is off to a challenging start for Boeing as focus remains on the crisis surrounding the 737 Max aircraft.
Leer más »
Global groundings of Boeing 737 Max lower company's profit, revenue in first quarterBoeing's first-quarter revenue and profit took a hit from the global groundings of its 737 Max jets following two fatal crashes.
Leer más »