{"id":606542,"date":"2024-01-29T12:14:19","date_gmt":"2024-01-29T09:14:19","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/wall-street-girds-for-ugly-boeing-earnings-as-ceo-faces-scrutiny\/"},"modified":"2024-01-29T12:14:19","modified_gmt":"2024-01-29T09:14:19","slug":"wall-street-girds-for-ugly-boeing-earnings-as-ceo-faces-scrutiny","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/wall-street-girds-for-ugly-boeing-earnings-as-ceo-faces-scrutiny\/","title":{"rendered":"#Wall Street girds for ugly Boeing earnings as CEO faces scrutiny"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a416c8f266bd\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a416c8f266bd\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/wall-street-girds-for-ugly-boeing-earnings-as-ceo-faces-scrutiny\/#Ongoing_probe\" >Ongoing probe<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/wall-street-girds-for-ugly-boeing-earnings-as-ceo-faces-scrutiny\/#Production_targets_doubtful\" >Production targets doubtful<\/a><\/li><\/ul><\/nav><\/div>\n<div>\n<div class=\"article-gallery lightGallery\">\n<div data-thumb=\"https:\/\/scx1.b-cdn.net\/csz\/news\/tmb\/2024\/alaska-airlines-has-re.jpg\" data-src=\"https:\/\/scx2.b-cdn.net\/gfx\/news\/2024\/alaska-airlines-has-re.jpg\" data-sub-html=\"Alaska Airlines has resumed service on the Boeing 737 MAX 9 following a three-week grounding in the wake of a January 5 emergency landing.\">\n<figure class=\"article-img\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/scx1.b-cdn.net\/csz\/news\/800a\/2024\/alaska-airlines-has-re.jpg\" alt=\"Alaska Airlines has resumed service on the Boeing 737 MAX 9 following a three-week grounding in the wake of a January 5 emergency landing\" title=\"Alaska Airlines has resumed service on the Boeing 737 MAX 9 following a three-week grounding in the wake of a January 5 emergency landing.\" width=\"800\" height=\"530\"\/><figcaption class=\"text-darken text-low-up text-truncate-js text-truncate mt-3\">\n                Alaska Airlines has resumed service on the Boeing 737 MAX 9 following a three-week grounding in the wake of a January 5 emergency landing.<br \/>\n            <\/figcaption><\/figure>\n<\/div>\n<\/div>\n<p>Boeing&#8217;s 737 MAX 9 planes have begun to fly again after the January 5 Alaska Airlines scare, but the episode is expected to weigh on the aviation giant&#8217;s finances for the foreseeable future.<\/p>\n<p>                                                                                                                                    Both Alaska and United Airlines resumed service on the MAX 9 over the weekend following a three-week grounding after a panel blowout necessitated an emergency landing. The incident has heaped scrutiny on Boeing and CEO David Calhoun.<\/p>\n<p>Investors will get an initial <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>raisal of the financial consequences on Wednesday when Boeing releases fourth-quarter results.<\/p>\n<p>Besides reporting another annual loss, Boeing is expected to withdraw commercial plane production targets that have been central to its medium-term financial outlook, which has included promises for much profitability in 2025 and 2026.<\/p>\n<p>The Alaska Airlines episode is also expected to add to costs, including compensation for airlines. However, these items may not surface until later in 2024, analysts said.<\/p>\n<p>Shares of Boeing have fallen nearly 18 percent since the troubled Alaska Airlines flight as investors bet on a toughened regulatory environment that slows plane deliveries.<\/p>\n<p>Bank of America analysts downgraded Boeing this week, concluding that &#8220;materially increased regulatory scrutiny&#8221; from the Federal Aviation Administration (FAA) would result in a &#8220;forced slowdown.&#8221;<\/p>\n<p>The incident has also added to questions about Boeing leadership in light of sharp criticism of the company from airline customers.<\/p>\n<p>Calhoun spent part of last week on Capitol Hill meeting with lawmakers who have also promised public hearings.<\/p>\n<p>&#8220;They&#8217;re going to have to demonstrate change,&#8221; said Jeff Guzzetti, a former head of the FAA&#8217;s investigation division.<\/p>\n<p>Guzzetti said he expects management changes, but added, &#8220;I don&#8217;t know what that looks like or who.&#8221;<\/p>\n<p>                                                                                                        <!-- TechX - News - In-article --><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Ongoing_probe\"><\/span>Ongoing probe<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The Alaska Airlines episode represents the most serious operational problem for Boeing since two crashes on 737 MAX 8 planes in 2018 and 2019 resulted in 346 fatalities and a lengthy grounding.<\/p>\n<p>While there were no serious injuries in the latest incident, National Transportation Safety Board officials have said the episode could have been catastrophic.<\/p>\n<p>The agency is expected to update the probe next week, an NTSB spokesperson said Friday.<\/p>\n<p>The FAA has pointedly criticized Boeing&#8217;s quality assurances as &#8220;unacceptable&#8221; in not identifying manufacturing problems prior to the delivery to customers.<\/p>\n<div class=\"article-gallery lightGallery\">\n<div data-thumb=\"https:\/\/scx1.b-cdn.net\/csz\/news\/tmb\/2024\/boeing-ceo-dave-calhou-2.jpg\" data-src=\"https:\/\/scx2.b-cdn.net\/gfx\/news\/2024\/boeing-ceo-dave-calhou-2.jpg\" data-sub-html=\"Boeing CEO Dave Calhoun speaks after meeting with lawmakers to answer questions about the latest problems with the 737 MAX.\">\n<figure class=\"article-img text-center\"><img decoding=\"async\" src=\"https:\/\/scx1.b-cdn.net\/csz\/news\/800a\/2024\/boeing-ceo-dave-calhou-2.jpg\" alt=\"Boeing CEO Dave Calhoun speaks after meeting with lawmakers to answer questions about the latest problems with the 737 MAX\" title=\"Boeing CEO Dave Calhoun speaks after meeting with lawmakers to answer questions about the latest problems with the 737 MAX.\"\/><figcaption class=\"text-left text-darken text-truncate text-low-up mt-3\">\n                Boeing CEO Dave Calhoun speaks after meeting with lawmakers to answer questions about the latest problems with the 737 MAX.<br \/>\n            <\/figcaption><\/figure>\n<\/div>\n<\/div>\n<p>Analysts don&#8217;t expect Boeing to disclose findings about the root causes of the January incident when it reports earnings Wednesday, but are hopeful for more details about the company&#8217;s operational changes.<\/p>\n<p>Morningstar analyst Nicolas Owens is looking for &#8220;any incremental information about what they&#8217;re going to do differently,&#8221; he said in an interview.<\/p>\n<p>&#8220;They have not dug deep enough into how disrupted their manufacturing process has become. And they need to dig deeper,&#8221; he told AFP.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Production_targets_doubtful\"><\/span>Production targets doubtful<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The MAX 9 planes are beginning to return to service after the FAA last week cleared the jets following detailed inspections.<\/p>\n<p>But as part of its MAX 9 announcement, the FAA froze Boeing&#8217;s production level for the model until the company demonstrates improvement.<\/p>\n<p>That halt likely derails Boeing&#8217;s plans to lift MAX production from its 2023 target of around 38 per month to 50 per month in 2025 or 2026\u2014a boost it hoped would result in $10 billion in free cash flow.<\/p>\n<p>                                                                                                                                            Analysts have also noted that the higher output levels had assumed timely FAA certification\u2014which might now be delayed\u2014of the 737 MAX 7 and the 737 MAX 10.<\/p>\n<p>&#8220;Boeing is going to have a problem with expediting deliveries of their new aircraft,&#8221; said Guzzetti, who warned of &#8220;profit loss&#8221; from the constraints.<\/p>\n<p>Christopher Raite, a senior analyst at Third Bridge, said Boeing&#8217;s dive in the stock market reflects investor &#8220;pessimism&#8221; about its ability to ramp up MAX output.<\/p>\n<p>&#8220;We want to hear what they plan to produce, at what rate and when they plan to get there,&#8221; Raite said. &#8220;Are they going to move that 2025 target?&#8221;<\/p>\n<p>The crisis facing Boeing has sparked speculation about a leadership change, potentially including Calhoun.<\/p>\n<p>Airlines executives in recent weeks have sharply criticized Boeing and demanded stricter oversight while stopping short of calling for leadership changes.<\/p>\n<p>A board member since 2009, Calhoun ascended to the top job following the December 2019 ouster of Dennis Muilenburg in the wake of the two fatal MAX crashes.<\/p>\n<p>In 2021, Boeing raised the retirement age for its CEOs to 70, potentially enabling Calhoun to remain in place until 2028. In December, the company named Stephanie Pope as chief operating officer, a move seen as possibly setting up a successor.<\/p>\n<p>Morningstar&#8217;s Owens does not expect a management change, however, at least while Boeing is still in &#8220;crisis mode.&#8221;<\/p>\n<p class=\"article-main__note mt-4\">\n                                                \u00a9 2024 AFP\n                                            <\/p>\n<p>                                        <!-- print only --><\/p>\n<div class=\"d-none d-print-block\">\n<p>                                                <strong>Citation<\/strong>:<br \/>\n                                                Wall Street girds for ugly Boeing earnings as CEO faces scrutiny (2024, January 29)<br \/>\n                                                retrieved 29 January 2024<br \/>\n                                                from https:\/\/techxplore.com\/<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a>\/2024-01-wall-street-girds-ugly-boeing.html<\/p>\n<p>                                            This document is subject to copyright. 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Boeing&#8217;s 737 MAX 9 planes have begun to fly again after the January 5 Alaska Airlines scare, but the episode is expected to weigh on the aviation giant&#8217;s finances for the&#8230;<\/p>\n","protected":false},"author":1,"featured_media":606543,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/scx2.b-cdn.net\/gfx\/news\/2024\/alaska-airlines-has-re.jpg","fifu_image_alt":"","footnotes":""},"categories":[16],"tags":[],"class_list":["post-606542","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-sciencee"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/606542","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=606542"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/606542\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/606543"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=606542"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=606542"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=606542"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}