Jim Lebenthal joins the ‘Halftime Report’ along with his evaluation of Boeing’s Q3 earnings report. Then, Steve Weiss weighs in on what it is going to take for firm management to regain credibility. “I might go earn money elsewhere, if I had been you,” Weiss tells Lebenthal. For entry to stay and unique video from CNBC subscribe to CNBC PRO:
Boeing on Wednesday mentioned flaws in its 787 Dreamliners would generate $1 billion in irregular prices and that it minimize manufacturing to about two of the planes a month because it struggles to handle high quality points. These issues led it to droop deliveries for a lot of the previous yr.
The producer wrote down $183 million of that quantity within the third quarter.
Gross sales improved, nevertheless, because of larger plane gross sales and deliveries. Boeing mentioned its income rose to $15.28 billion within the third quarter, up 8% from $14.14 billion a yr in the past. That was under the $16.3 billion analysts forecast. The corporate reported a $132 million internet loss for the quarter although it was narrower than the $466 million it misplaced a yr earlier. On an adjusted foundation, Boeing misplaced 60 cents per share, greater than the 20 cents analysts anticipated.
“Our industrial market is displaying improved indicators of restoration with vaccine distribution and border protocols starting to open,” CEO Dave Calhoun mentioned in a workers be aware after outcomes had been launched. “As demand returns, provide chain capability and international commerce can be key drivers of our business and the worldwide economic system’s restoration.”
Boeing mentioned employee availability within the provide chain “would be the essential watch merchandise.”
Boeing’s working money circulate improved to detrimental $262 million in contrast with $4.8 billion a yr earlier. The corporate’s shares had been down 0.6% in early-afternoon buying and selling, paring earlier losses.
Right here’s how the corporate carried out in contrast with analysts’ estimates complied by Refinitiv:
Adjusted outcomes: A lack of 60 cents a share vs. an anticipated lack of 20 cents a share.
Income: $15.28 billion vs. $16.3 billion, anticipated.
Boeing first disclosed high quality points with seams on the fuselages of a few of its 787s final yr. The issues resulted in inspections that prompted Boeing to droop deliveries of the planes to airline clients, depriving the corporate of money.
Deliveries resumed briefly this yr however had been halted once more in Could for extra inspections. Boeing has about 100 of the planes in stock, analysts estimate. The corporate has repeatedly introduced down the manufacturing price for the jetliners. Over the summer time, Boeing mentioned it was producing fewer than 5 787s a month.
“The corporate expects to proceed at this price till deliveries resume after which return to 5 per thirty days over time,” it mentioned in a launch.
In an interview with CNBC’s “Squawk on the Road,” Calhoun declined to offer an estimate on when 787 deliveries to clients, which embrace American Airways and United Airways, will resume, saying it partly depends upon the Federal Aviation Administration.
“The FAA continues to interact with Boeing as the corporate works to exhibit the reliability of its proposed methodology for inspecting sure undelivered 787 airplanes,” it mentioned in an announcement. “The FAA is not going to log off on the inspections till our security consultants are happy.”
The wide-body 787s are used largely for lengthy, worldwide journeys. Demand for these flights was damage by the Covid pandemic however United, American and different carriers have reported a spike in bookings for trans-Atlantic journeys as governments ease pandemic journey restrictions.
» Subscribe to CNBC TV:
» Subscribe to CNBC:
» Subscribe to CNBC Basic:
Flip to CNBC TV for the most recent inventory market information and evaluation. From market futures to stay worth updates CNBC is the chief in enterprise information worldwide.
The Information with Shepard Smith is CNBC’s every day information podcast offering deep, non-partisan protection and perspective on the day’s most necessary tales. Obtainable to pay attention by 8:30pm ET / 5:30pm PT every day starting September 30:
Join with CNBC Information On-line
Get the most recent information:
Comply with CNBC on LinkedIn:
Comply with CNBC Information on Fb:
Comply with CNBC Information on Twitter:
Comply with CNBC Information on Instagram:
#CNBC
#CNBCTV
source
It's fun for "analysts" and other to kick management when the company hits difficult times. However, those more familiar with Boeing's deep reservoir of talent are adding shares.
🤣 wiess and farmer Jim fighting 🤣🤣🤣
Let's be honest. The software in the 737 max killed two entire flights overseas. The automatic pilot engaged. The crews who did not speak English well tried to fight the instruments. Hundreds killed.
Boeing needs to do well. It’s a national security issue to have Boeing exist and be strong.
Get a real engineer as a CEO … too much MBA as executives ! Elon Musk category!
Very serious management mistakes that cost lives more like it
You need a person familar with plane design and engineering as ceo. Literally we have seen turn arounds in companies like amd because they switched from a business first ceo to an engineering focused ceo who has busoness expierence
Boeing is one of USA companies. Please do well and honestly for our county!!!!!!!!!!!!!!!
If BA had no problems it will not have an EV of $224Bl. is nonsense! This company had a $15Bl in revenue in Q3 vs. TSLA with $13Bl. with an EV of $1Tl and dozens of competitor world wide selling more cars than they. Stay put!
Feisty lol
God damn it, bought this stock at the wrong time and now I am losing money 🥺
Boeing is the biggest industrial manufacturer in the world. I am not an investor myself, but the company will be in a great spot in the next few years after Covid. Don't mind Steve Weiss who is almost always on the wrong side of the trades.
Steve must be enjoying his shorts on the market past few weeks
Elon Musk could and should buy Boeing!!
Bloomberg article: "Boeing Tracks Faulty Parts From ‘Sub-Tier’ Dreamliner Supplier"
YT video of Boeing executives saying they themselves would not fly on Boeing planes
Beancounter CEOs care about money, making it the company's primary mission and its reason to exist. Engineering needs to survive with money, but when saving money or making money becomes the primary criteria which engineers are to live by, then the company is set up to fail for the long run.
Boeing needs to adapt Palantir Foundry
Damn they gave the Them 65 Million Dollars to get out and fire the mechanics.
Bam is a Joke just like opf and HLFC.
Nice Bird Strikes.
They have a captive market. That sounds like one of the worst reasons to invest. A company that holds its customers as hostage.
Harrumph. Why can't Boeing get a new CEO just b/c of the FAA?
So One Reason Boeing Sucks SO Much Is Because It IS The Only Game In Town
Nah …… I'd rather put my money in MSFT!
Lock them up.
Boeing needs a CEO who is also an engineer, not another Wall St financial manager. Then the company will at least start on the road to restore its credibility.
Stock market movement is BS and a false measure. Stupid show just a pack of old talking heads FFS.
It seems to me that Tesla cars are subject to more scutiny by the NTSB than Boeing aircraft.
He wants him to sell so he can pick up his shares lol