Boeing hiring hundreds of workers to maintain parked 737 Max planes

Maintenance workers cover the engine of an American Airlines Group Inc. Boeing Co. 737 Max plane outside of a maintenance hangar at Tulsa International Airport (TUL) in Tulsa, Oklahoma, U.S., on Tuesday, May 14, 2019. Boeing is hiring hundreds of temporary workers to help maintain its growing fleet of grounded 737 Max planes that are awaiting delivery. The company has posted job listings for a few hundred temporary workers who will help the company with 737 Max storage and maintenance at the Por


Maintenance workers cover the engine of an American Airlines Group Inc. Boeing Co. 737 Max plane outside of a maintenance hangar at Tulsa International Airport (TUL) in Tulsa, Oklahoma, U.S., on Tuesday, May 14, 2019. Boeing is hiring hundreds of temporary workers to help maintain its growing fleet of grounded 737 Max planes that are awaiting delivery. The company has posted job listings for a few hundred temporary workers who will help the company with 737 Max storage and maintenance at the Por
Boeing hiring hundreds of workers to maintain parked 737 Max planes Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-20  Authors: phil lebeau, michael wayland
Keywords: news, cnbc, companies, moses, 737, max, washington, planes, maintain, lake, tulsa, parked, maintenance, company, boeing, hundreds, hiring, workers


Boeing hiring hundreds of workers to maintain parked 737 Max planes

Maintenance workers cover the engine of an American Airlines Group Inc. Boeing Co. 737 Max plane outside of a maintenance hangar at Tulsa International Airport (TUL) in Tulsa, Oklahoma, U.S., on Tuesday, May 14, 2019.

Boeing is hiring hundreds of temporary workers to help maintain its growing fleet of grounded 737 Max planes that are awaiting delivery.

The company has posted job listings for a few hundred temporary workers who will help the company with 737 Max storage and maintenance at the Port of Moses Lake east of Seattle. Boeing will not say exactly how many employees are being hired.

Boeing is seeking “avionics technicians, aircraft mechanics, airframe and Powerant (A&P) mechanics, and aircraft electricians,” according to a company spokesman.

Since aviation regulators across the world grounded the Max in March, Boeing has continued building the planes, but not delivering them. Many are parked near Boeing’s 737 plant in Renton, Washington, but dozens of other Max models have been flown to other locations where they are parked and receive daily maintenance. One of those locations of the Port of Moses Lake, an airfield next to the Grant County International Airport in Moses Lake, Washington.


Company: cnbc, Activity: cnbc, Date: 2019-08-20  Authors: phil lebeau, michael wayland
Keywords: news, cnbc, companies, moses, 737, max, washington, planes, maintain, lake, tulsa, parked, maintenance, company, boeing, hundreds, hiring, workers


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Wilbur Ross says the US economy will see a boost when the Boeing 737 Max grounding lifts

The U.S. economy will get a boost when Boeing’s troubled 737 Max jets return to flight, Commerce Secretary Wilbur Ross told CNBC on Wednesday. “Take for example the most recent quarter, Boeing’s problems with 737 Max probably took something like 0.4%” off gross domestic product, Ross said. “That will come back when the 737 Max problems are ultimately fixed.” The 737 Max fleet has been grounded across the globe since mid-March following two crashes over less than five months that killed 346 peopl


The U.S. economy will get a boost when Boeing’s troubled 737 Max jets return to flight, Commerce Secretary Wilbur Ross told CNBC on Wednesday. “Take for example the most recent quarter, Boeing’s problems with 737 Max probably took something like 0.4%” off gross domestic product, Ross said. “That will come back when the 737 Max problems are ultimately fixed.” The 737 Max fleet has been grounded across the globe since mid-March following two crashes over less than five months that killed 346 peopl
Wilbur Ross says the US economy will see a boost when the Boeing 737 Max grounding lifts Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-14  Authors: jessica bursztynsky
Keywords: news, cnbc, companies, boost, ross, lifts, month, growth, boeings, grounding, wilbur, max, software, boeing, economy, took, 737, secondquarter


Wilbur Ross says the US economy will see a boost when the Boeing 737 Max grounding lifts

The U.S. economy will get a boost when Boeing’s troubled 737 Max jets return to flight, Commerce Secretary Wilbur Ross told CNBC on Wednesday.

“Take for example the most recent quarter, Boeing’s problems with 737 Max probably took something like 0.4%” off gross domestic product, Ross said. “That will come back when the 737 Max problems are ultimately fixed.”

U.S. growth slowed in the second quarter, with GDP advancing 2.1% compared to the first-quarter’s 3.1% gain.

The 737 Max fleet has been grounded across the globe since mid-March following two crashes over less than five months that killed 346 people combined. Investigators blamed a software problem in the plane’s anti-stall automated flight system.

Last month, Boeing reported a $2.9 billion second-quarter loss, its worst quarterly loss ever, due to the Max problems.

Shortly after the grounding, analysts began to predict that Boeing’s troubles would harm overall U.S. economic growth. Wells Fargo in April projected a 0.2% reduction in second-quarter GDP. Last month, J.P. Morgan estimated the groundings and subsequent production cuts would trim second-quarter economic growth by about 0.1%.

The 737 Max grounding, now in its sixth month, has also hit suppliers. General Electric said last month its cash flow took a hit as a result. GE, which makes the Max engines through a joint venture, said it would continue to report losses as long as the model remained grounded.

Boeing, which has been testing software fixes, expects the Max jets to return to the skies by early in the fourth quarter.

Once that happens, Ross said, the U.S. economy will even out. “We think that the economy is strong, the economy is headed in a good direction,” he added, saying he believes the U.S. can work its way to 3% growth.


Company: cnbc, Activity: cnbc, Date: 2019-08-14  Authors: jessica bursztynsky
Keywords: news, cnbc, companies, boost, ross, lifts, month, growth, boeings, grounding, wilbur, max, software, boeing, economy, took, 737, secondquarter


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Why Boeing investors can look to Chipotle as a path through crisis and back to big stock returns

But Boeing’s climb stopped when tragedy struck, twice: Just several months apart, two Boeing 737 Max airplanes crashed, killing a total of 346 people. After the second crash, multiple federal investigations began examining the 737 Max – including probes by the FBI and both chambers of Congress. Shortly after the grounding, Boeing cut production of the 737 Max to 42 aircraft per month, a decrease of about 20%. Boeing shares have fallen nearly 25% since peaking on March 1 at $446.01 a share. Boein


But Boeing’s climb stopped when tragedy struck, twice: Just several months apart, two Boeing 737 Max airplanes crashed, killing a total of 346 people. After the second crash, multiple federal investigations began examining the 737 Max – including probes by the FBI and both chambers of Congress. Shortly after the grounding, Boeing cut production of the 737 Max to 42 aircraft per month, a decrease of about 20%. Boeing shares have fallen nearly 25% since peaking on March 1 at $446.01 a share. Boein
Why Boeing investors can look to Chipotle as a path through crisis and back to big stock returns Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-11  Authors: michael sheetz
Keywords: news, cnbc, companies, epstein, chipotle, shares, hottovy, kahyaoglu, boeing, 737, look, crisis, returns, stock, investors, path, max, boeings, airplane, big


Why Boeing investors can look to Chipotle as a path through crisis and back to big stock returns

Patrick T. Fallon | Bloomberg | Getty Images; Lindsey Wasson | Reuters

Boeing investors face more questions than answers as its 737 Max crisis drags on, but the company could find a way forward by turning to an unlikely example: Chipotle Mexican Grill. Chipotle shares were on an incredible run from the company’s IPO to mid-2015, climbing more than 1,400%, but in July of that year an E. coli outbreak sickened hundreds of customers. Sales plunged and then came more E. coli outbreaks, plus norovirus and salmonella outbreaks, that further deteriorated public confidence. It took more than three years before Chipotle’s stock stopped falling — even after the company eventually quelled safety concerns. At the bottom, its shares lost about two-thirds of their value. Boeing is playing out a similar story. Over a decade, its shares rose more than 700%. It was one of the best-performing stocks in the Dow Jones Industrial Average. But Boeing’s climb stopped when tragedy struck, twice: Just several months apart, two Boeing 737 Max airplanes crashed, killing a total of 346 people. Federal regulators grounded the 737 Max – there were 387 in service around the world. Boeing slowed production of the jets and continues working with regulators to find a fix for the aircraft’s software, which has been implicated in the crashes. Its stock has lost about a quarter of its value since its most recent high. “Airplanes are not lettuce,” Bank of America analyst Ron Epstein told CNBC. Indeed, at a glance these two companies are vastly different, yet a comparison of their crises reveals noted similarities that should give Boeing investors a better sense of how long the recovery process may take. “From the point of view that lettuce is a core piece of what Chipotle does, the 737 is a core piece of what Boeing does – about a third of their cash flow,” Epstein said. Both crises show how perception of management’s competency, as well as rebuilding customer confidence, is key to a successful recovery. “It’s amazing that we’re talking about two very different companies and two very different situations, but I do think that at the root of it is this: If management comes across as complacent, it can have a more serious ripple effect than in any time in history,” Morningstar consumer analyst R.J. Hottovy told CNBC. “You can’t come across as if it’s no big deal because, in this day and age of social media, those are the type of things that come back to haunt you,” Hottovy said.

The Boeing crisis

Boeing reported its biggest quarterly loss in history last month, which was its first full three-month period since the 737 Max was grounded. The company’s chairman, president and CEO, Dennis Muilenburg, spoke on the company’s conference call with investors about strategies and alternatives, although he spent much of the time tempering expectations. Costs are piling up as Boeing took a nearly $5 billion charge in the second quarter to compensate airlines for disruptions caused by the grounded plane. Airlines have canceled thousands of flights already this summer, with Southwest Airlines warning passengers that disruptions may continue through the Thanksgiving and Christmas holidays. Ryanair CEO Michael O’Leary aired his frustration during a conference call with investors last week, saying new planes for the airline “could well move to zero if Boeing don’t get their s— together pretty quickly with the regulator. ” After the second crash, multiple federal investigations began examining the 737 Max – including probes by the FBI and both chambers of Congress. Investigators are especially looking at how regulators approved the 737 Max to fly as a software issue appears to be key in both crashes. Additionally, Boeing faces lawsuits from the families of crash victims. Shortly after the grounding, Boeing cut production of the 737 Max to 42 aircraft per month, a decrease of about 20%. While Boeing aims to get back on track and raise production next year, that is contingent upon the aircraft returning to service before the end of this year. If delays worsen, Boeing may either further cut or suspend production. Either move would damage Boeing’s suppliers, such as Spirit AeroSystems and General Electric, both of which are seeing profits squeezed by the slowing production. Boeing shares have fallen nearly 25% since peaking on March 1 at $446.01 a share. At about $340 a share, Boeing’s stock is currently near the same price it was 12 months ago. Boeing shares haven’t fallen to the degree that Chipotle did during its crisis, even though Boeing’s crashes were more severe. With its timeline for resuming flying the 737 Max this year in doubt, it’s unclear how patient shareholders will have to be. “It’s a timer on how quickly this aircraft gets off the ground. But there’s a lot that goes into it, so it’s a very sticky situation,” Jefferies analyst Sheila Kahyaoglu told CNBC. “Whether it’s November or January I don’t think will make much of a material difference.” So far, Boeing’s stock is treading water near the same price it was at this time last year. But the question Epstein asks is what many want answered: “Where is the stock when you get through this?” “Given the headlines, the stock’s been very resilient,” Epstein said.

Chipotle recovers from its crisis

It took about four years, and a new CEO, but Chipotle’s stock has come all the way back. The shares dropped nearly 67% from their high of $757.77 in August 2015 to the bottom, at $251.33 in February 2018. How did the company lose nearly two-thirds of its value? “Chipotle had built its brand on having fresh products. The way Chipotle handled the food scares, in a lot of ways, exacerbated the issue – management was complacent,” Hottovy said He believes Chipotle’s multiple food scares compounded issues with its operations. “Customers were willing to wait in the long line out the door because they knew the line would be fast, and the speed of service got slower, and a lot of that was the fact that they didn’t do a great job of training their employees,” Hottovy said. “It didn’t necessarily lead to the food safety issues, but it certainly didn’t help it either.” Shares began to turn around after Brian Niccol, former Taco Bell CEO, came on as Chipotle’s chief executive in March 2018. Founder Steve Ells resigned from the position but remains executive chairman. Chipotle is up 89% this year and hit a new 52-week high of $822.88 a share on Friday.

The similarities for Boeing shareholders

While there are obvious differences between the companies and the products at hand, analysts pointed to how the situations have multiple similarities. First and foremost, Epstein said, is the company’s reputation with consumers. “How long did it take for people to feel comfortable to go back into Chipotle and eat things? How long is it going to take consumers to feel comfortable to get back on a 737? That’s an open question,” Epstein said. Hottovy explains that, in the restaurant and fast-food business, a food scare typically has “a recovery period of about nine months.” Chipotle’s recovery took longer because “they had multiple incidents,” Hottovy said, which “showed that whatever solutions they had put into place just weren’t working.” “If you have repeated ones then that starts to become part of the brand,” Hottovy said. Kahyaoglu said that the 737 Max “won’t be a major factor in flight choices” after about “the first six months, or even three months.” She cautioned that this is only her own rough estimate, and not a direct result of a model or survey. Both companies had more than one incident but Boeing’s recovery time, in her view, will not be quite as drawn out due to the difference in consumer choices. Epstein, however, added that Boeing, like Chipotle, faces “an existential risk that wasn’t there” before: The potential damage to customer confidence from further accidents. “If there’s a third incident, for any reason – it could even not be the fault of the airplane – then that would put a big dent in the 737 franchise,” Epstein said. Another similarity between Boeing and Chipotle is that both companies had an issue with a key product. Epstein noted that Boeing is not going to “move out of the 737 business” and that what happened is fixable. But Epstein said even “the absolute worst possible case” for Boeing, where the airplane is endlessly grounded and “never comes back,” will not change the market demand for an airplane like the 737 Max. “They’ll replace it with a new airplane. It takes three or four years – maybe five years – they come out with a whole new product with all the bells and whistles of a new airplane, it costs them a lot of money, but then they’ll have another airplane in the market and they’ll be selling those,” Epstein said.

Important differences

Moving forward, Boeing’s management cannot be lackluster in its response and future communication about the 737 Max, Hottovy said. Chipotle “was an example of what not to do” during a crisis, Hottovy said, and management’s clarity “was severely lacking.” For both companies, Hottovy said that “transparency is a big part of this.” “One of the big reasons why Chipotle wasn’t able to fully recover is that, when you have a situation like this nowadays, you have to be fully transparent: You have to identify what happened, why it happened in the first place and what solutions are going to be there,” Hottovy said. “Chipotle was never able to concretely say that a bad batch of lettuce got into the system.” Kahyaoglu notes that Boeing has some opportunities to recover that Chipotle did not have. “Perhaps with some rebranding, the general public might not be able to distinguish the Max [compared to another Boeing aircraft], where as a consumer walks into a restaurant and makes a very conscious choice,” Kahyaoglu said. More broadly, the type of airplane a consumer is flying on rarely factors into their choice. But with Chipotle, the type of food is absolutely key. “It’s less complicated,” Epstein said. “You’re either going to get a burrito or you’re not going to get a burrito.” With flights, most customers choose times and destinations, not aircraft. “The consumer ultimately won’t need to make this decision and, once this aircraft is back and there are 100 safe flights, then no one will ever be talking about this again,” Kahyaoglu said. The market demand for the company’s product during the crisis is also different. Chipotle has already seen some sales declines when the food safety issues arose, Hottovy said. But at the time of Boeing’s crisis, the company was reporting record sales and a backlog of more than $400 billion worth of orders. Boeing also has a lot of inventory built up, Epstein noted, as the company has been parking 737 Max airplanes at facilities all around the country. Perhaps the most important difference is the management situation. Chipotle waited until after the worst of the crisis to change its CEO, but analysts don’t expect that Boeing’s board is likely to remove Muilenburg. There’s a simple reason for that: Airbus. “This a global duopoly with two manufacturers … there aren’t a wealth of people that Boeing could choose to put aside from their main competitor,” Kahyaoglu said. Epstein concurred. “Right now, for better or for worse, there are only two large manufacturers of commercial aircraft in the world.” “Who else could you possibly hire?” Kahyaoglu added. “That’s why I think Muilenburg’s knowledge of the situation is actually pretty important, given his operational experience and knowledge of Boeing.”

What’s ahead for Boeing?


Company: cnbc, Activity: cnbc, Date: 2019-08-11  Authors: michael sheetz
Keywords: news, cnbc, companies, epstein, chipotle, shares, hottovy, kahyaoglu, boeing, 737, look, crisis, returns, stock, investors, path, max, boeings, airplane, big


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Boeing conducts 500 test flights of troubled 737 Max jets in bid to restore trust following crashes

Boeing Chief Executive Dennis Muilenburg speaks during their annual shareholders meeting at the Field Museum on April 29, 2019 in Chicago, Illinois. Boeing CEO Dennis Muilenburg said Monday that the company has conducted almost 500 test flights with a new software update to its grounded 737 Max planes that he hopes will help win back the confidence of the flying public. He said the company has focused on updating software to make the Boeing 737 Max as safe as possible. The planes have been groun


Boeing Chief Executive Dennis Muilenburg speaks during their annual shareholders meeting at the Field Museum on April 29, 2019 in Chicago, Illinois. Boeing CEO Dennis Muilenburg said Monday that the company has conducted almost 500 test flights with a new software update to its grounded 737 Max planes that he hopes will help win back the confidence of the flying public. He said the company has focused on updating software to make the Boeing 737 Max as safe as possible. The planes have been groun
Boeing conducts 500 test flights of troubled 737 Max jets in bid to restore trust following crashes Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-05  Authors: jasmine wu
Keywords: news, cnbc, companies, 737, boeing, trust, company, flights, crashes, restore, max, software, troubled, following, test, conducts, muilenburg, planes, jets, months


Boeing conducts 500 test flights of troubled 737 Max jets in bid to restore trust following crashes

Boeing Chief Executive Dennis Muilenburg speaks during their annual shareholders meeting at the Field Museum on April 29, 2019 in Chicago, Illinois.

Boeing CEO Dennis Muilenburg said Monday that the company has conducted almost 500 test flights with a new software update to its grounded 737 Max planes that he hopes will help win back the confidence of the flying public.

“We know that trust has been damaged over the last few months, and we own that and we are working hard to re-earn that trust going forward,” Muilenburg said in an interview at the Global Business Travel Association conference in Chicago. He said the company has focused on updating software to make the Boeing 737 Max as safe as possible.

The planes have been grounded worldwide since mid-March after two crashes within five months of one another claimed 346 lives.

Muilenburg said that he has personally flown on two of the test flights, and that Boeing employees are “eager to do the same.”

Boeing announced in July that the company will take a $4.9 billion charge in the second quarter due to the jetliner’s grounding. The company reported its worst ever quarterly loss of $2.9 billion later that month.

Muilenburg also reiterated the company’s plan to submit a certification package to the Federal Aviation Administration in September, and that he expects the 737 Maxes to return service early in the fourth quarter.

Boeing shares fell to 2.5% to close at a nearly seven-month low of $331.06 on Monday in a broad market swoon.


Company: cnbc, Activity: cnbc, Date: 2019-08-05  Authors: jasmine wu
Keywords: news, cnbc, companies, 737, boeing, trust, company, flights, crashes, restore, max, software, troubled, following, test, conducts, muilenburg, planes, jets, months


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Boeing to change 737 Max flight-control software to address flaw: Sources

Boeing plans further changes to the software architecture of the 737 MAX flight-control system to address a flaw discovered after a test in June, two people briefed on the matter said late on Thursday. The redesign, first reported by the Seattle Times, involves using and receiving input from both flight control computers rather than one. The move comes in response to an effort to address a problem discovered in June during a Federal Aviation Administration (FAA) simulator test.


Boeing plans further changes to the software architecture of the 737 MAX flight-control system to address a flaw discovered after a test in June, two people briefed on the matter said late on Thursday. The redesign, first reported by the Seattle Times, involves using and receiving input from both flight control computers rather than one. The move comes in response to an effort to address a problem discovered in June during a Federal Aviation Administration (FAA) simulator test.
Boeing to change 737 Max flight-control software to address flaw: Sources Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-02
Keywords: news, cnbc, companies, sources, test, flightcontrol, max, discovered, simulator, address, thursdaythe, 737, change, using, times, system, flaw, seattle, software, boeing


Boeing to change 737 Max flight-control software to address flaw: Sources

Boeing plans further changes to the software architecture of the 737 MAX flight-control system to address a flaw discovered after a test in June, two people briefed on the matter said late on Thursday.

The redesign, first reported by the Seattle Times, involves using and receiving input from both flight control computers rather than one.

The move comes in response to an effort to address a problem discovered in June during a Federal Aviation Administration (FAA) simulator test.


Company: cnbc, Activity: cnbc, Date: 2019-08-02
Keywords: news, cnbc, companies, sources, test, flightcontrol, max, discovered, simulator, address, thursdaythe, 737, change, using, times, system, flaw, seattle, software, boeing


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Stocks making the biggest moves midday: Lyft, Chipotle, Starbucks, Boeing & more

Check out the companies making headlines middayLyft – Shares of ride hailing company Lyft fell nearly 3% as CNBC confirmed that the company’s chief operating officer Jon McNeill is leaving the company. Chipotle – Shares of Chipotle rose over 3% after Goldman Sachs named the fast-food company as its favorite restaurant stock. The firm initiated coverage of Chipotle with a buy rating and a $1,000 price target, representing 28% upside for the stock, and added Chipotle to its conviction buy list. St


Check out the companies making headlines middayLyft – Shares of ride hailing company Lyft fell nearly 3% as CNBC confirmed that the company’s chief operating officer Jon McNeill is leaving the company. Chipotle – Shares of Chipotle rose over 3% after Goldman Sachs named the fast-food company as its favorite restaurant stock. The firm initiated coverage of Chipotle with a buy rating and a $1,000 price target, representing 28% upside for the stock, and added Chipotle to its conviction buy list. St
Stocks making the biggest moves midday: Lyft, Chipotle, Starbucks, Boeing & more Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-29  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, making, boeing, price, nearly, company, stocks, lyft, starbucks, earnings, target, shares, stock, fell, chipotle, quarter, moves, midday, biggest, rating


Stocks making the biggest moves midday: Lyft, Chipotle, Starbucks, Boeing & more

Check out the companies making headlines midday

Lyft – Shares of ride hailing company Lyft fell nearly 3% as CNBC confirmed that the company’s chief operating officer Jon McNeill is leaving the company. Before working for Lyft, McNeill worked for Tesla.

Pfizer, Mylan – Pfizer fell more than 2% while Mylan climbed 13% after it was announced that Pfizer would combine its off-patent drug business with Mylan. The all-stock deal would create a U.S.-headquartered combined company that would sell Mylan’s EpiPen and Pfizer’s Viagra. The paired company would generate more than $20 billion in annual sales.

Chipotle – Shares of Chipotle rose over 3% after Goldman Sachs named the fast-food company as its favorite restaurant stock. The firm initiated coverage of Chipotle with a buy rating and a $1,000 price target, representing 28% upside for the stock, and added Chipotle to its conviction buy list. Goldman said digital sales will drive the next leg of the stocks rally.

Starbucks – Shares of Starbucks dropped about 1% after J.P. Morgan said the stock’s “upside from here is limited” and cut its rating on the company to neutral from overweight. Starbucks stock has climbed more than 90% in the past 12 months.

Boeing – One of the laggards of the Dow Jones industrial average, Boeing’s stock fell almost 1% after analysts at credit agencies Standard & Poor’s, Moody’s and Fitch released ratings that gave a cautious outlook on the aerospace giant’s debt due to the prolonged 737 Max crisis. S&P especially warned that “Boeing’s credit metrics will very likely deteriorate over the next few quarters.” Additionally, Ryanair CEO Michael O’Leary sounded off on Boeing during his company’s earnings conference call, saying that Ryanair may have to cut jobs if “Boeing don’t get their s— together pretty quickly with the regulator.”

Insperity — Shares of the human resources company plunged more than 21% after cutting full-year and third-quarter guidance to below what Wall Street was expecting. Higher health claims and lower-than-expected hiring at existing accounts for the second quarter added to pressure on the stock.

UPS – Shares of UPS fell 1.6% following a downgrade from Stifel. The firm lowered its rating to hold and maintained its $118 per share price target, saying it does not feel comfortable pushing the valuation multiple up enough to continue to recommend a buy. UPS pushed passed Stifel’s price target after its strong quarterly earnings last week.

Tower Semiconductor — The circuit manufacturer’s stock rallied nearly 9% after revenue, earnings and third-quarter guidance all topped analysts’ expectations for the second quarter. Tower Semiconductor highlighted its 11% organic growth from the prior quarter and forecast strong demand.

Beyond Meat – Shares of the meat alternative company fell more than 5% on Monday ahead of its first quarterly earnings report since its initial public offering in May. Since then, the stock has surged 794% and hit a record high of $239.71 last week. Nearly 44% of Beyond’s outstanding shares are being shorted, according to data from S3 Partners.

– CNBC’s Michael Sheetz, Tom Franck and Kate Rooney contributed to this report.


Company: cnbc, Activity: cnbc, Date: 2019-07-29  Authors: maggie fitzgerald
Keywords: news, cnbc, companies, making, boeing, price, nearly, company, stocks, lyft, starbucks, earnings, target, shares, stock, fell, chipotle, quarter, moves, midday, biggest, rating


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Boeing better get its ‘s— together,’ Ryanair CEO warns as 737 Max grounding drags on

Boeing halted deliveries of the jets in March after two deadly 737 Max crashes within five months of one another. Ryanair CEO Michael O’Leary warned on Monday that the prolonged grounding of the Boeing 737 Max could lead to job cuts and slash the low-cost airline’s growth prospects next year. Southwest Airlines, which operates an all-Boeing 737 fleet, said last week it plans to take its new, but still-grounded Max planes out of its schedule until early January. O’Leary’s comments highlight growi


Boeing halted deliveries of the jets in March after two deadly 737 Max crashes within five months of one another. Ryanair CEO Michael O’Leary warned on Monday that the prolonged grounding of the Boeing 737 Max could lead to job cuts and slash the low-cost airline’s growth prospects next year. Southwest Airlines, which operates an all-Boeing 737 fleet, said last week it plans to take its new, but still-grounded Max planes out of its schedule until early January. O’Leary’s comments highlight growi
Boeing better get its ‘s— together,’ Ryanair CEO warns as 737 Max grounding drags on Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-29  Authors: leslie josephs
Keywords: news, cnbc, companies, planes, week, warns, oleary, max, 737, flying, drags, better, airlines, grounding, warned, ceo, boeing, ryanair


Boeing better get its 's--- together,' Ryanair CEO warns as 737 Max grounding drags on

“It may well move to 20, it could move to 10, and it could well move to zero if Boeing don’t get their s— together pretty quickly with the regulator,” O’Leary said.

Ryanair executives expected 58 of the planes for the summer of 2020, O’Leary said on an earnings call.

Boeing halted deliveries of the jets in March after two deadly 737 Max crashes within five months of one another. That has meant airlines like European budget carrier Ryanair, cannot grow their operations as planned. Regulators have not said when they will allow the planes to fly again.

Ryanair CEO Michael O’Leary warned on Monday that the prolonged grounding of the Boeing 737 Max could lead to job cuts and slash the low-cost airline’s growth prospects next year.

Regulators ordered airlines to stop flying the planes, Boeing’s bestseller, following an Ethiopian Airlines Max crash on March 10, less than five months after a Lion Air Max went down in Indonesia shortly after takeoff. Together the two crashes killed all 346 people on board.

Investigators in both crashes implicated flight-control software Boeing added to the planes, an upgraded version of its workhorse jet that’s been flying since the 1960s. Boeing told investors last week it is testing the software and expects to submit the fixes to the Federal Aviation Administration for approval in September.

O’Leary, however, said Boeing would submit its return-to-service changes in October. Boeing spokesman Charles Bickers said that “there has been no change to our expectations since last week.”

Airlines around the world that ordered the 737 Max, eager to expand flying with the fuel-efficient jetliners, have canceled thousands of flights during peak vacation travel season and are grappling with lost revenue since they were grounded in mid-March.

“Safety is our first priority. We regret the impact that the grounding is having on our customers as we work with the regulatory authorities to safely return the Max to service,” Boeing spokesman Bickers said.

Ryanair isn’t the only airline concerned about the effects grounding, now in its fifth month, spilling into next year. Southwest Airlines, which operates an all-Boeing 737 fleet, said last week it plans to take its new, but still-grounded Max planes out of its schedule until early January. American Airlines warned investors last week that it expects the grounding will cost it $400 million in pretax earnings this year, $50 million more than it forecast in April.

O’Leary’s comments highlight growing frustration among carriers left without their new planes, even as Boeing tries Boeing tries to quantify compensation for airlines and leasing firms.

Boeing posted its biggest loss in its history in the second quarter because of the grounding. It took a $4.9 billion charge in the second quarter for compensation it plans to pay to 737 Max customers. It said its production costs rose by $1.7 billion, and warned that costs could climb if the grounding goes on longer.

The manufacturer, which has sold more than 4,000 of the planes, said it could suspend already-reduced production altogether if the return to service is later than early in the fourth quarter.

Boeing’s charges don’t include what it may have to pay as a result of dozens of lawsuits. The company, along with the FAA, is also facing numerous investigations over how the plane was certified two years ago. The regulator has faced criticism from lawmakers over the close ties between Boeing and the agency and Boeing employees’ participation — a long-standing practice — in the certification process.

FAA officials on Wednesday morning are scheduled to face questions from a Senate transportation panel about oversight of the agency.


Company: cnbc, Activity: cnbc, Date: 2019-07-29  Authors: leslie josephs
Keywords: news, cnbc, companies, planes, week, warns, oleary, max, 737, flying, drags, better, airlines, grounding, warned, ceo, boeing, ryanair


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The Boeing 737 Max grounding is going on so long it will disrupt holiday air travel

With no end in sight to the grounding of Boeing’s 737 Max, one airline is warning travelers that their Thanksgiving and Christmas travel plans might be disrupted. Airlines have already canceled thousands of flights during the peak summer travel season as the Boeing 737 Max grounding wears on for months longer than expected. “It’s really all about the Max,” said Southwest CEO Gary Kelly on an earnings call. The airline posted higher-than-expected profits despite the prolonged Max grounding thanks


With no end in sight to the grounding of Boeing’s 737 Max, one airline is warning travelers that their Thanksgiving and Christmas travel plans might be disrupted. Airlines have already canceled thousands of flights during the peak summer travel season as the Boeing 737 Max grounding wears on for months longer than expected. “It’s really all about the Max,” said Southwest CEO Gary Kelly on an earnings call. The airline posted higher-than-expected profits despite the prolonged Max grounding thanks
The Boeing 737 Max grounding is going on so long it will disrupt holiday air travel Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-27  Authors: leslie josephs
Keywords: news, cnbc, companies, going, long, travel, boeing, max, air, airlines, southwest, 737, airline, grounding, planes, demand, holiday, disrupt


The Boeing 737 Max grounding is going on so long it will disrupt holiday air travel

With no end in sight to the grounding of Boeing’s 737 Max, one airline is warning travelers that their Thanksgiving and Christmas travel plans might be disrupted.

Southwest Airlines on Thursday became the first U.S. airline to pull the planes, grounded by regulators worldwide in mid-March after two fatal crashes within five months of one another, from its schedule until next year. American and United expect the planes to return in early November.

Boeing this week said that it’s testing a software fix for an automated flight-control system it added to the Max jetliners that was implicated in two crashes — one in Indonesia in October and another in Ethiopia in March — that killed 346 people. CEO Dennis Muilenburg said he expects the company will submit those fixes and other information needed for the plane to fly again to the FAA in September. He said the company anticipates the planes will be flying again early in the fourth quarter, but it warned that more delays are possible.

Airlines have already canceled thousands of flights during the peak summer travel season as the Boeing 737 Max grounding wears on for months longer than expected. The groundings and paused deliveries of the planes to airlines cost Boeing more tan $7 billion in the second quarter: money it set aside to compensate to airline customers and increased costs.

“It’s really all about the Max,” said Southwest CEO Gary Kelly on an earnings call. The airline posted higher-than-expected profits despite the prolonged Max grounding thanks to strong travel demand. “That’s the only issue that we are dealing with.”

The airline’s operating income took a $175 million-hit due to the grounding, the airline said.

Kelly said everything else at Southwest “is rock solid.”

Hamstrung by the lack of its 737 Max planes, currently parked in the California desert, Southwest can’t grow as planned, or ramp up flying as much meet demand during busy travel periods like the end-of-year holidays after it pulled the planes from its schedules until Jan. 5.

Southwest, which doesn’t charge travelers fees to change or cancel their flights, will waive fare differences for customers who need to change their trips because of the extended schedule disruption.

“If demand remains strong as it appears to be, looking into the fall, I think there’s going to be plenty of competition by consumers for the cheapest seats,” said Henry Harteveldt, a former airline executive and founder of travel-industry consulting firm Atmosphere Research Group.

“I think the airlines are worried,” he added. “Neither Boeing nor the FAA can provide 100% accurate insight right now because they’re still working on the various fixes on the plane that have to be made.”

Once the regulators clear the planes to return to service, airlines will have to train their pilots on the changes Boeing made aboard, a process that airline executives say can take more than a month.


Company: cnbc, Activity: cnbc, Date: 2019-07-27  Authors: leslie josephs
Keywords: news, cnbc, companies, going, long, travel, boeing, max, air, airlines, southwest, 737, airline, grounding, planes, demand, holiday, disrupt


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Boeing could suspend 737 Max production if the planes’ return is delayed further, sending stock lower

The 737 Max has been grounded since mid-March following two fatal crashes. Boeing had delivered about 400 737 Max planes to airlines at the time the aircraft was grounded worldwide in March. Companies that make parts for the 737 Max were trading lower. Muilenburg warned currently reduced 737 Max production at 42 a month will delay deliveries to airlines in the future once production resumes. A Lion Air flight in Indonesia in October killed all 189 aboard, while an Ethiopian Airlines 737 Max that


The 737 Max has been grounded since mid-March following two fatal crashes. Boeing had delivered about 400 737 Max planes to airlines at the time the aircraft was grounded worldwide in March. Companies that make parts for the 737 Max were trading lower. Muilenburg warned currently reduced 737 Max production at 42 a month will delay deliveries to airlines in the future once production resumes. A Lion Air flight in Indonesia in October killed all 189 aboard, while an Ethiopian Airlines 737 Max that
Boeing could suspend 737 Max production if the planes’ return is delayed further, sending stock lower Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-24  Authors: leslie josephs
Keywords: news, cnbc, companies, airlines, boeing, max, grounding, stock, delayed, return, warned, lower, 737, production, sending, suspend, planes, month


Boeing could suspend 737 Max production if the planes' return is delayed further, sending stock lower

The manufacturer on Wednesday posted the biggest quarterly loss in its history as costs piled up and it took a nearly $5 billion charge to compensate airlines affected by the worldwide grounding of the 737 Max, now in its fifth month. Boeing warned its costs from the grounding could climb if it wears on longer than expected.

The 737 Max has been grounded since mid-March following two fatal crashes. Investigators implicated a piece of new flight-control software in both air disasters that repeatedly pushed the nose of the planes downward. A total of 346 people were killed in the two crashes. Boeing has developed a software fix and aims to submit that and other requirements to get the planes flying again to the Federal Aviation Administration in September, CEO Dennis Muilenburg said on an earnings call.

Boeing expects its troubled 737 Max jets to return to the skies by early in the fourth quarter but its CEO warned investors on Wednesday that it could further cut or suspend production of its bestselling planes altogether if delays get worse.

Boeing in April cut production of the planes by nearly 20% to 42 a month in the wake of the second crash in Ethiopia a month earlier. Muilenburg told analysts that it expects to maintain that rate and ramp up production to 57 a month in 2020, if as it anticipates, the planes return to service early in the fourth quarter. But if the return date is further delayed, Boeing could cut production more.

“Should our estimate of the anticipated return to service change, we might need to consider possible further rate reductions or other options including a temporary shutdown of the Max production,” Muilenburg said. The CEO later added that “a temporary shutdown of production line could be more efficient than a sustained lower production rate” because it could reduce storage requirements.

Shares of Boeing extended their losses after Muilenburg’s remarks, trading 3% lower and shaving nearly 80 points off the Dow Jones Industrial Average in afternoon trading.

The grounding has vexed Boeing’s airline customers that have canceled thousands of flights during a busy summer travel season. Carriers including United, Southwest and American have removed the planes from their schedules until early November, leading to thousands of more flight cancellations. Further delays could crimp their operations during the Thanksgiving and Christmas holiday travel period.

Boeing had delivered about 400 737 Max planes to airlines at the time the aircraft was grounded worldwide in March. After the second crash, Boeing said it would suspend deliveries to carriers and has been storing the jets in Texas and at its facilities in Washington state, including in an employee parking lot.

Companies that make parts for the 737 Max were trading lower. Spirit AeroSystems Holdings, which makes fuselages for the 737 Max was off 2% and materials providers Hexcel and Allegheny Technologies, were down 0.4% and 2.3%, respectively.

Muilenburg warned currently reduced 737 Max production at 42 a month will delay deliveries to airlines in the future once production resumes.

Regulators have not said when they expect to allow the planes to fly again.

Treasury Secretary Steven Mnuchin told CNBC’s “Squawk Box ” on Wednesday that the U.S. wants to “absolutely make sure that before the 737 Max flies that it’s safe.”

“I think there’s no question Boeing has the financial capacity to fix this but I think we need to make sure they’re fixed and we need to figure out how they compete against Airbus,” he said, referring to Boeing’s European rival, which is wrapped up in a trade dispute over U.S. accusations of illegal subsidies.

Boeing said the financial guidance it issued earlier this year doesn’t reflect the Max impacts and “due to the uncertainty of the timing and conditions surrounding return to service of the 737 Max fleet” it would issue new guidance at a later date.

Boeing’s $4.9 billion charge and the $1.7 billion increase in costs related to the 737 Max grounding does not include sums that it may have to pay in dozens of lawsuits related to the crashes. A Lion Air flight in Indonesia in October killed all 189 aboard, while an Ethiopian Airlines 737 Max that crashed shortly after takeoff in March killed 157 people. It also doesn’t include the $100 million that Boeing said it would set aside for victims’ relatives and their communities.

Aside from the Max woes, Boeing said the first flight of its revamped double-aisle 777x jetliners would take place in 2020 instead of this year due to issues with the planes’ General Electric engines. Boeing warned that “there is significant risk” to its plans to first deliver these planes to airlines next year because of the ongoing problems.


Company: cnbc, Activity: cnbc, Date: 2019-07-24  Authors: leslie josephs
Keywords: news, cnbc, companies, airlines, boeing, max, grounding, stock, delayed, return, warned, lower, 737, production, sending, suspend, planes, month


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Stocks making the biggest moves midday: Boeing, Texas Instruments, iRobot, Caterpillar & more

Check out the companies making headlines midday Wednesday:Texas Instruments — Texas Instruments rose more than 7% to an all-time high after the chipmaker beat estimates for its second-quarter results. The company reported earnings per share of $1.36 a share, surpassing a FactSet estimate of $1.22 a share. Boeing — Boeing shares fell 2% after the aerospace giant reported a $2.9 billion loss for the previous quarter — its biggest ever. The company reported revenue of $388 million compared to Refin


Check out the companies making headlines midday Wednesday:Texas Instruments — Texas Instruments rose more than 7% to an all-time high after the chipmaker beat estimates for its second-quarter results. The company reported earnings per share of $1.36 a share, surpassing a FactSet estimate of $1.22 a share. Boeing — Boeing shares fell 2% after the aerospace giant reported a $2.9 billion loss for the previous quarter — its biggest ever. The company reported revenue of $388 million compared to Refin
Stocks making the biggest moves midday: Boeing, Texas Instruments, iRobot, Caterpillar & more Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-24  Authors: fred imbert
Keywords: news, cnbc, companies, texas, biggest, boeing, shares, midday, share, stock, results, moves, instruments, reported, company, earnings, sales, making, caterpillar, revenue, billion, irobot, stocks


Stocks making the biggest moves midday: Boeing, Texas Instruments, iRobot, Caterpillar & more

Traders work on the floor at the closing bell of the Dow Industrial Average at the New York Stock Exchange on January 17, 2018 in New York.

Check out the companies making headlines midday Wednesday:

Texas Instruments — Texas Instruments rose more than 7% to an all-time high after the chipmaker beat estimates for its second-quarter results. The company reported earnings per share of $1.36 a share, surpassing a FactSet estimate of $1.22 a share. Revenues also topped analyst expectations. The company also issued better-than-expected guidance for the third quarter. CEO Rich Templeton noted the quality of the company’s portfolio and efficiency of its manufacturing strategy, including the “the benefit of 300-millimeter Analog production” in a statement.

Boeing — Boeing shares fell 2% after the aerospace giant reported a $2.9 billion loss for the previous quarter — its biggest ever. The loss includes a massive $4.9 billion charge as Boeing’s flagship airplane, the 737 Max, remains grounded. Boeing also warned it could suspend production of the 737 Max, depending on delays.

Snap — The social media company’s stock surged 14.9% on quarterly results that exceeded analysts’ estimates. The company reported revenue of $388 million compared to Refinitiv’s forecast of $359.7 million. Snap also reported a smaller-than-expected quarterly loss. The strong results were driven by a growing user base.

Caterpillar — Caterpillar shares dropped 4% after the industrial giant reported weaker-than-expected results for the second quarter as the U.S.-China trade war drags on. The company posted earnings per share of $2.83 on revenue of $14.432 billion. Analysts polled by Refinitv expected a profit of $3.12 per share on sales of $14.435 billion. Caterpillar also lowered its profit forecast for 2019.

iRobot — Shares of iRobot plummeted 19% after the company’s CEO said the U.S.-China trade war could constrain growth in the second half of the year. The maker of the Roomba robot vacuum also lowered its full-year earnings guidance to a range of $2.40-$3.15 per share from the prior $3.15-$3.40 per share.

Manhattan Associates — Shares of the software company rallied more than 18% on the back of quarterly earnings and revenues that beat analyst expectations. The company posted a profit of 42 cents per share on revenue of $154.3 million. Analysts expected earnings of 35 cents per share on sales of $146 million. “In a turbulent global macro [environment], our suite of Manhattan Active omnichannel, inventory and supply chain solutions continued to drive solid revenue momentum positioning us well for the balance of 2019,” CEO Eddie Capel says.

Party City — Party City’s stock jumped more than 7% after an analyst at Goldman Sachs upgraded it to buy from neutral. The analyst said earnings are expected to be poor, but “we believe this is largely reflected in investor expectations based on our conversations.”

Western Digital — Western Digital gained 1.96% after Deutsche Bank raised its price target on the semiconductor stock to $65 per share from $55. Deutsche has a buy rating on the stock, citing positive macro developments such as the lifting of some restrictions on Huawei potentially creating better-than-expected demand for one of Western Digital’s main products as a reason for the price target change.

UPS — Shares of UPS climbed nearly 9% after the shipping company delivered better-than-expected second-quarter results, fueled by strong demand for quicker shipping. The company reported earnings of $1.96 per share on $18.048 billion in revenue. Analysts expected $1.92 in earnings per share and $17.966 billion in revenue, according to Refinitiv.

AT&T — AT&T shares rose 3% after the telecom giant reported better-than-expected subscriber growth. The company added a net of 72,000 phone subscribers, compared to a FactSet estimate of 27,000. However, the company also lost more premium TV subscribers this quarter than the last.

Chipotle Mexican Grill — Chipotle shares rose 5.2% to an all-time high on stronger-than-expected second-quarter results. The restaurant chain earned an adjusted $3.99 per share, beating the consensus estimate of $3.76 as digital sales nearly doubled. Revenue, which came in at $1.43 billion, beat a $1.41 billion estimate. And same-store sales grew 10%, also beating an 8.33% estimate.

—CNBC’s Elizabeth Myong, Mallika Mitra, Marc Rod and Jesse Pound contributed to this report.


Company: cnbc, Activity: cnbc, Date: 2019-07-24  Authors: fred imbert
Keywords: news, cnbc, companies, texas, biggest, boeing, shares, midday, share, stock, results, moves, instruments, reported, company, earnings, sales, making, caterpillar, revenue, billion, irobot, stocks


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