“We Will Become a Small Company”: Boeing Has Serious Problems

April 30 2020 7

Against the backdrop of the fight against the pandemic, the American company Boeing sharply reduces the production of its wide-body aircraft, as well as the total number of employees. At the same time, the European Airbus called the measures taken by authorities around the world to curb COVID-19, "a somewhat schizophrenic approach." It is reported by the American financialeconomic Forbes magazine, citing the management of the companies mentioned.

A pandemic inflicts a serious blow on our business

- stated Boeing CEO David Calhoun in his message to employees.

He claimed serious financial losses for the first quarter of 2020. This was caused by the ban on air travel, which in turn provoked the cessation of purchases of new aircraft by airlines.

Therefore, Boeing decided to halve the monthly plan for the production of 787 Dreamliner airliners (from 14 to 7) by 2022. In turn, the production volume of model 777 airliners will be reduced from five units per month to three.

The number of employees will be reduced by 16 thousand people.

For a while we will be a small company

- said Calhoun.

According to him, it will take two to three years to return to the level of business activity in 2019, and a few more years for the aviation industry to return to its former growth.

At the same time, CEO Guillaume Fory of Airbus said the company was "hibernating and slowing down in order to save money." The next 3-5 years will be difficult, says a top manager.

For the first quarter, Airbus handed over 122 airliners to 49 customers, which is 40 units less than in the same period in 2019.

Somewhere in the third quarter we will see peak values in the volumes of produced but not delivered aircraft

- emphasized Fori.

At the same time, he is convinced that the desire to fly will surely return to people after defeating the coronavirus.

Information

Dear reader, to leave comments on the publication, you must sign in.

GRF

+1

April 30 2020 11: 55

And after three years, the ingenious capitalists of people will recruit, and even, probably, they will increase their salaries (such as percentage) and everything is in the black. Yes?
Well, this is if people stretch out for three years without bread.
Although they have the costs of effective managers, it’s not the first time to drag, not by themselves, so through state taxes ...
And that the state does not want to buy a company for three years?

So, if you pull everything honestly, then they aren’t particularly effective, these ingenious managers, on whom we are always equal here ...
Igor Pavlovich

-3

April 30 2020 12: 21

How sweet that the neighbor has at least one in a hundred cows dead. In this case, it does not matter that you have never had one ...
1. Oyo Sarkazmi
  
  +2
  
  April 30 2020 12: 47
  
  Quote: Igor Pavlovich
  that at least one out of a hundred cows is dead.
  
  You are a little inaccurate. Not the neighbor, but the sahib. And one hundred cows from him - taken from others. Libya, Iraq, Venezuela.
  And you are wildly outraged that the sahiba cow died, and he can not take it from you. Complex faithful coolies.
Sergey Latyshev

+1

April 30 2020 13: 24

It's time to learn to read between the lines again.
That is, Boeing does not even think to "isolate itself", but has simply halved the volume of airliners under construction for now.
It was, for example, 700 a year, planned 350 ... About the rest of the products - silence ....

Airbus even less. A quarter has lowered ....

350-200 airliners alone is a "very small" company ....
Tourist

0

April 30 2020 14: 12

It was interesting to read how such news was covered in a non-core publication.
And this is how it looks in money:

Aircraft maker Boeing has published financial results for the first quarter of 2020.

Revenue in the reporting period decreased by 26% to $ 16,908 billion compared with $ 22,917 billion a year earlier, while analysts on average expected $ 17,33 billion. The company's revenue fell in three of four segments.

Commercial Airplane Segment (CAS) revenues fell 48% to $ 6,21 billion from $ 11,822 billion a year earlier, although analysts expected $ 5,94 billion. The decrease in revenue was due to lower shipments, which dipped 66% to 50 airliners compared with 149 units a year earlier due to continuing problems with the Boeing 737 MAX and lower demand for the Boeing 787 due to COVID-19, as well as aircraft maintenance costs. At the same time, the company's management said that the commissioning of the Boeing 737 MAX is expected in 2020. The order portfolio is more than 5000 aircraft with a total value of more than $ 352 billion, compared with $ 376 billion in the fourth quarter of 2020.
...
The company's net loss was $ 641 million, or $ 1,11 per share, compared with a profit of $ 2,15 billion or $ 3,75 per share a year earlier.

Read more here:

https://www.finam.ru/international/newsitem/boeing-opublikoval-finansovye-rezultaty-za-pervyiy-kvartal-2020-goda-20200429-165150/?&s=1&c=False
1. 123
  
  +2
  
  1 May 2020 00: 17
  
  Thanks for the link.
  
  Negative cash flow in the first quarter was $ 4,73 billion, compared with positive $ 2,29 billion a year earlier, although analysts expected negative cash flow of $ 5,79 billion. Debt increased from $ 27,3 billion to $ 38,9 billion.
  
  Earlier, the gurus of the economy talked about negative growth, now they have come to negative cash flows.
  Translated into Russian, the phrase means a company that has earned billions of dollars, is now head over heels in losses - 4,37 billion per year, and even brilliant managers managed to collect debts of 11,5 billion.
  Apparently, in this form, the phrase does not sound very tolerant of a reputable company. With these words, it is rather accepted to cover the activities of Russian companies.
  Apparently, we will hear news about the company more than once. Maybe it's time to shoot the new season of the financial "Steep Dive"?
alexandrmakedo

+2

April 30 2020 20: 45

Quote: Sergey Latyshev
It's time to learn to read between the lines again.
That is, Boeing does not even think to "isolate itself", but has simply halved the volume of airliners under construction for now.
It was, for example, 700 a year, planned 350 ... About the rest of the products - silence ....

Airbus even less. A quarter has lowered ....

350-200 airliners alone is a "very small" company ....

For you, of course, loot is the main thing. The rogue complex. For which the loot is not a means, but a goal.
The normal reasoning for a person is to consider the loss figures not in airplanes, but in people. But neither BOING, nor you, got to this. And hardly ...

1042874 - sick in the United States by April 30, 2020.
124294 - recovered - "-
61187 - deceased - "-