Boeing Earnings Crater as the 737 MAX Grounding Takes a Toll
The grounding of the Boeing (NYSE: BA) 737 MAX is set to drag on for longer than anyone had initially anticipated. New potential safety issues discovered last month have forced Boeing to design yet another software update for its troubled jet, which will probably keep the 737 MAX out of the sky until at least November.
With deliveries of its biggest cash-cow product halted until further notice, Boeing's earnings results suffered in Q2, the first full quarter following the grounding order. A big one-time charge to cover some of the costs of the grounding made the quarterly earnings report look even worse.
On Wednesday, Boeing began to total up the damage caused by the 737 MAX design flaws and the ongoing grounding. Boeing's results deteriorated substantially on a year-over-year basis across every major business metric.
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