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Boeing suspends forecasts amid 737 MAX troubles
Boeing on Wednesday abandoned its 2019 financial outlook, halted share buybacks and announced $1 billion in increased costs due to the grounding of its fastest-selling 737 MAX jet after two fatal plane crashes in five months.
One billion dollars - that's what Boeing says is the financial damage so far from two deadly airline crashes involving its bestselling 737 Max jet.
In announcing its quarterly earnings Wednesday, Boeing abandoned its 2019 outlook, halted its planned share buy-backs, and cut production and deliveries of the 737 MAX.
Anti-stall software in the 737 MAX is a suspected cause in the crash of an Ethiopian Airlines flight in March and a Lion Air flight in October, that killed a combined 346 people.
(SOUNDBITE) (ENGLISH) REUTERS REPORTER TRACY RUSINCKY saying: "CEO Dennis Muilenburg really tried to reassure investors that it knows what it needs to do to fix this issue but it's clear that the company has a lot to do to restore public trust." Despite the worst crisis in its 102-year history, Boeing's Cash flow from sales of other jetliners and military hardware remained strong.
Earlier this month - company CEO Dennis Muilenburg tried to win back confidence saying the company was on the path toward certification of a upgrade after completing more than 135 test and production flights.
According to Business Insider, Goldman Sachs dropped its price target for Boeing as troubles continue to plague the airline manufacturer following the two crashes of its 737 Max aircraft over the past..