Shares of Boeing are mixed following a new report via Reuters detailing how the company sent a letter to the U.S. Securities and Exchange Commission (SEC) indicating how "significant additional regulatory requirements or delays" on the troubled 737 Max could cause it to slash or "temporarily halt production."
- BOEING SAYS SIGNIFICANT ADDITIONAL REGULATORY REQUIREMENTS OR DELAYS ON 737 MAX RETURN TO SERVICE COULD CAUSE IT TO CUT OR TEMPORARILY HALT 737 MAX PRODUCTION - LETTER TO SEC
The letter was first viewed by Reuters, which said Boeing doesn't "expect 737 MAX order cancellations due to the grounding of its best-selling single-aisle jet after deadly crashes to have a material impact on revenues or earnings because of the size of 737 order backlog and management's ability to mitigate potential impacts by shifting planned customer delivery dates."
BOEING SAYS DOES NOT EXPECT 737 MAX ORDER CANCELLATIONS DUE TO GROUNDING TO HAVE MATERIAL IMPACT ON REVENUES OR EARNINGS - LETTER TO SEC
BOEING SAYS DOES NOT EXPECT STORAGE CAPACITY TO LIMIT ABILITY TO CONTINUE 737 MAX PRODUCTION - LETTER TO SEC
And maybe the hype last month of the 737 Max potentially receiving a re-certification to return to the air via the Federal Aviation Administration (FAA) by January 2020 is fake news. It seems like the 737 Max grounding could extend well into 2020.
Boeing shares were dumped then pumped, then dumped again on the news.
Despite 346 people dead in two separate 737 Max crashes in the last 13 months, Boeing's stock continues to trade sideways.
Could Boeing be headed for disaster if 737 Max groundings persist well into 2020?