Boeing posts third annual loss in a row as Dreamliner prices hit $5.5 billion

Boeing a major milestone in its year-long 737 Max crisis deliveries jump helped generate cash in the fourth quarter for the first time in almost three years.

But now the company is facing mounting spending on its 787 Dreamliner program, which on Wednesday revealed $5.5 billion in costs related to manufacturing defects that have prevented Boeing from making these new ones over the past 15 months Handing over jets to customers.

Shares of the company fell more than 5% in afternoon trade, more than the broader market.

The manufacturer took a pre-tax charge of $3.5 billion for the Dreamliner in the fourth quarter. It expects an additional $2 billion in costs after cutting production of the planes, double its previous estimate.

“We can’t rush it”

Boeing first disclosed the flaws – tiny, improper clearances on some fuselages – in 2020. Defects were also found in other parts of some aircraft, and Boeing had to inspect the undelivered jets.

“While I don’t like any of the allegations, the progress has been significant,” CEO Dave Calhoun told CNBC.screeching in the streeton Wednesday about the 787. He declined to say when he expects regulators to grant approval and deliveries to resume. “We can’t rush it.”

Boeing reported free cash flow of $494 million for the fourth quarter, up from an outflow of $4.27 billion a year earlier, a milestone Boeing executives previously said they wouldn’t hit until 2022. It was spurred by a surge in 737 Max deliveries last year after regulators lifted bans on the jets following fatal crashes in 2018 and 2019.

China

China, a key customer for Boeing and the first country to ground the Max after the second crash, the last month was approaching lift its ban in the planes.

CFO Brian West told analysts on the quarterly conference call that shipments to China could resume “as early as the first quarter” of 2022, which could help the company generate more cash.

Here’s how Boeing compared to analyst estimates prepared by Refinitiv:

  • Adjusted Results: A loss of $7.69 per share versus an expected loss of 42 cents per share.
  • Revenue: $14.79 billion versus $16.59 billion expected.

Boeing lost $4.29 billion last year, its third consecutive annual loss Covid pandemic and production problems continued to affect the bottom line. That’s an improvement from 2020, when the company had a loss of $11.94 billion.

For the fourth quarter, Boeing reported a net loss of $4.16 billion, less than half the $8.44 billion it lost a year earlier. Revenue fell 3% year over year to $14.79 billion, down from $16.59 billion that analysts had expected.

‘renovation year’

“2021 was an important recovery year for us, and together we overcame significant hurdles,” Calhoun said in a note to employees on Wednesday. “While we still have work to do, I am confident that we are well positioned to accelerate our progress in 2022 and beyond.”

Chicago-based Boeing aircraft sales and deliveries increased last year, but deliveries of new planes to airlines still lagged behind European rival Airbus. The US company said it has increased production of the 737 Max to 26 a month, closer to the 31 a month it expects this year and up from the 19 a month it released in its last quarterly report.

But Boeing has been paralyzed for months by halting deliveries of its 787 Dreamliners for much of the past year due to a series of manufacturing defects that have left customers baffled American Airlines and Hawaiian Airlines.

American Airlines said last month it would be cutting its international flight schedule over 787 delivery delays. The airline’s CFO, Derek Kerr, said in an earnings call last week that Boeing is already paying penalties for the delays and “will compensate us for the losses” if there are more delays.

More delays

Kerr had said American expects to start deliveries of the Dreamliner again in mid-April, a timeframe Boeing CEO Calhoun did not confirm on Wednesday. “All I’m saying is that customers know everything we do,” Calhoun said, adding that airlines and Boeing “share the same regulator.”

“The company continues to perform follow-up work on 787 aircraft in inventory and is in detailed discussions with the FAA on the actions needed to resume deliveries,” Boeing said in a earnings release. “In the fourth quarter, the Company determined that these activities will take longer than previously anticipated, which will result in further delays in customer delivery dates and related customer considerations.”

CFO West referred to labor, material and supply chain shortages as “observation posts.”

Boeing’s large fleet of aircraft — 335 Max jets expected to be delivered by the end of 2023 — will provide a buffer, Calhoun said.

“When I think about the supply chain constraints that are out there, I hate that we got here this way, but having a stock of finished aircraft, particularly in relation to the Max, is at this moment beneficial,” Calhoun told CNBC.

recovery from travel

Calhoun said he expects the worst is behind the aviation sector after the pandemic crushed demand for air travel and new planes. Airline executives said in early January they expect international travel bookings to rebound this spring and summer after entry restrictions were lifted in recent months.

The company reiterated on Wednesday that it expects passenger traffic to return to 2019 levels next year or 2024.

Suppliers to Boeing and Airbus General Electric on Tuesday forecast a 20% increase in sales this year at its main aerospace division, which manufactures and repairs aircraft engines.

However, the recovery was bumpy. airlines incl delta, United and American earlier this month predicted the rapid spread of the Omicron variant, which began late last year delay a rebound travel demand by about two months. Executives at those airlines said they expect a strong spring and summer travel season.

On Tuesday, the Transportation Security Administration screened 1.06 million people, the fewest since April 2021.

Arizona Cardinals come to grips with upset loss to Detroit Lions ‘Love Really’-style

6:57 p.m. ET

  • Kelly CohenESPN

On the holidays: you have to be honest.

Well, if you stick to the standards of the 2003 Christmas movie “Love Actually”. In one of the scenes towards the end of the film, Peter (Chiwetel Ejiofor) and his wife Juliet (Keira Knightley) are watching TV when someone knocks on the door.

2 relatives

Juliet responds to find Mark (Andrew Lincoln), Peter’s best friend. Mark has a boombox and giant note cards in his hand. On these greeting cards, Mark Juliet says that “The truth is told at Christmas” and that the truth is “For me you are perfect”.

So in the spirit of Christmas, the 10-4 Arizona Cardinals decided to tell their own harsh truth: they actually lost to that Detroit Lions last Sunday. Despite finishing under 13 points, according to Caesars Sportsbook, the previously 11-11-1 Lions beat the Cardinals in Detroit 30-12.

Obviously, the Cardinals wanted to quickly forget about the angry loss as they didn’t tweet the bottom line from their official Twitter account.

Now, just days before Christmas, Arizona is ready to be honest about Love Reality-style game.

A message for all of our new Twitter followers as a tribute to a classic Christmas movie scene. pic.twitter.com/rhlrjgSZeM

– Arizona Cardinals (@AZCardinals) December 23, 2021

In an ode to romantic comedy, the Cardinals mascot Big Red admits the defeat of the past week with large cue cards.

For Arizona at least, love is actually omnipresent.

Lacking their hard-edged type, Islanders look misplaced in loss to Panthers as skid continues – The Athletic

The Barry DefianceIslanders had their struggles in the over three seasons he led the team. They have had some streaks of bad luck, but only one before this season, which included four straight losses.

But they never looked lost. At least until Tuesday.

Your 6-1 loss to the Panther It was already going uphill before the puck fell. It was the final stop of a 13-game stint to open the season as the islands’ new home, UBS Arena, prepared for its debut. Ryan Pulock missed a streak of 263 games in a row with a lower body injury; Josh Bailey was also absent after testing positive for COVID-19.

However, these islanders have previously banded together due to premature absences. Even if they lost games without a few key players, they still play defiantly – edgy, defensively stingy, and offensively mostly opportunistic.

That style has been absent for over a week, with four straight losses for a combined number of 19-4. Tuesday was the first that the Islanders were out early, falling into a 4-0 hole by a Panthers team that drove the Isles net and staying there while the Islanders simply again failed to protect the house, hanging Ilya Sorokin out to dry.

Despite trying to send a message on Monday in Tampa, Florida, scratchy

Boeing (BA) 3Q 2021 loss as Dreamliner flaws drive up prices

An employee works on the tail of a Boeing Co. Dreamliner 787 aircraft on the production line at the company’s final assembly facility in North Charleston, South Carolina.

Travis Dove | Bloomberg | Getty Images

Boeing said Wednesday that defects in its 787 Dreamliners would result in abnormal costs of $ 1 billion and that production would be reduced to about two of the planes per month as it struggles to address quality issues. These issues resulted in deliveries being suspended for most of the past year.

Of this, the manufacturer wrote off $ 183 million in the third quarter.

However, sales improved thanks to higher Aircraft sales and supplies. Boeing said its revenue rose to $ 15.28 billion in the third quarter, an 8% increase from $ 14.14 billion last year. That was below the $ 16.3 billion forecast by analysts. The company reported a net loss of $ 132 million for the quarter, despite being less than the $ 466 million it lost a year earlier.

“Our commercial market is showing improved signs of recovery with the opening up of vaccine distribution and border protocols,” said CEO Dave Calhoun in an employee statement following the results. “When demand returns, supply chain capacity and world trade will be the main drivers of our industry and the recovery of the world economy.”

Boeing’s cash flow from operations improved to minus $ 232 million from $ 4.8 billion a year ago. The company’s share rose 1.4% in pre-market trading.

This is how the company has developed compared to the analyst estimates carried out by Refinitiv:

  • Adjusted results: A loss of 60 cents per share versus an expected loss of 20 cents per share.
  • Revenue: $ 15.28 billion versus $ 16.3 billion, expected.

Last year, Boeing first disclosed quality problems with seams on the hulls of some of its 787s. The problems led to inspections that caused Boeing to suspend deliveries of the aircraft to airline customers, thereby draining the company’s cash.

Deliveries resumed briefly this year, but were suspended again in May due to further inspections. Analysts estimate that Boeing has around 100 of the aircraft in its fleet. The company has repeatedly lowered the production rate for the jetliners. Over the summer, Boeing announced it was producing fewer than five 787s a month.

“The company expects to continue at this rate until deliveries resume and then return to five per month over time,” the statement said.

Boeing has been in successive crises since the first of two fatal crashes of its 737 Max three years ago. While it was a 20-month aircraft lockdown, the pandemic decimated the demand for travel and airplanes.

The company shipped 62,737 in the quarter, the most since Q1 2019, Calhoun said. It manufactures 19 Max aircraft per month, up from 16 in July. The forecast was to increase production to 31 per month in early 2022.

The company’s shares had lost 2% so far this year as of Tuesday’s close of trading, compared to a 22% gain for the S&P 500.

Boeing executives will face analyst questions on Wednesday at 10:30 a.m. ET.

Worldwide cash launderer sentenced to federal jail in cyber-crime conspiracies accountable for meant lack of almost $60 million | USAO-SDGA

SAVANNAH, GA: A Canadian man who conspired to launder the tens of millions of dollars stolen from various wire transfer and bank fraud programs – including a massive online banking theft by North Korean cyber criminals – has been sentenced to nearly 12 years in federal prison.

Ghaleb Alaumary, 36, of Mississauga, Ontario, was sentenced to a total of 140 months in prison after pleading guilty to two counts of money laundering conspiracies, said David H. Estes, acting U.S. attorney for the southern district of Georgia . District Court Judge R. Stan Baker also ordered Alaumary to pay $ 30,703,946.56 in compensation to the victims and to be released under custody after completing his three-year sentence. There is no parole in the federal system.

“This defendant served as an integral channel in a network of cyber criminals who siphoned tens of millions of dollars from multiple companies and institutions around the world,” said acting US Attorney Estes. “He laundered money for a rogue nation and some of the world’s worst cybercriminals, and led a team of co-conspirators who helped fill thieves’ pockets and digital wallets. But US law enforcement agencies, in collaboration with their partners around the world, will bring fraudsters to justice who believe they can hide behind a computer screen. “

As described in unsealed court documents and trials, Alaumary and his co-conspirators used business compromise email programs, ATM withdrawals, and bank cyber-robberies to steal money from victims and then launder the money through bank accounts and digital currencies. He previously pleaded guilty to two money laundering cases in the southern Georgia district.

In the first case, filed and investigated in the southern district of Georgia, Alaumary conspired with others who sent fraudulent “fake” emails to a university in Canada in 2017 to create the appearance that the emails came from a university Construction company came out paying for a large construction project. The university, believed to be paying the construction company, transferred CAD 11.8 million (about $ 9.4 million) to a bank account controlled by Alaumary and his co-conspirators. Alaumary then arranged with individuals in the US and elsewhere to launder the stolen funds through various financial institutions.

Weeks later, Alaumary arranged several trips to Texas for a co-conspirator in the United States to impersonate wealthy bank customers in order to steal hundreds of thousands of dollars from victims ‘accounts using the victims’ stolen personally identifiable information. There was a phone call to a co-conspirator in Savannah discussing the fraud.

In the second case, relocated from the Central District of California to the Southern District of Georgia for his admission of guilt and conviction, Alaumary recruited and organized individuals to withdraw stolen cash from ATMs; provided bank accounts that received funds from bank cyber-robberies and fraud systems; and once the ill-gotten funds were in accounts he controlled, Alaumary further laundered the funds through wire transfers, cash withdrawals, and by exchanging the funds for cryptocurrency. Funds included a cyber attack on a Maltese bank in 2019 by North Korea. Other victims of Alaumary’s crimes have included banks headquartered in India, Pakistan and Malta, as well as corporations in the US and UK, individuals in the US and a professional football club in the UK

“International money launderers provide critical services to cyber criminals, helping hackers and scammers avoid their illegal profits and hide their illegal profits,” said Assistant Attorney General Kenneth A. Polite Jr. of the Department of Justice’s Department of Criminal Investigation. “Businesses large and small, a university, banks and others lost tens of millions of dollars on this plan. Alaumary’s verdict today reflects how seriously the Justice Department takes the critical role money launderers play in global cybercrime. “

“The conviction of the defendant in this case speaks to the value of cross-border investigative cooperation,” said Steven R. Baisel, SAIC Field Office of US Intelligence Atlanta. “Despite the complex, international nature of this criminal enterprise, the accused and his co-conspirators were brought to justice.”

“This case exemplifies our relentless determination to hold criminals accountable, no matter how sophisticated their crimes may seem,” said Phil Wislar, acting special agent for the FBI Atlanta. “The arrest and conviction of cybercriminals like Alaumary, who feel safe behind a computer screen, is only possible through persistent investigative efforts by the FBI and our close cooperation with our US and international partners.”

Alaumary is the fourth defendant in the investigation to be convicted in the southern district of Georgia. Uchechi Ohanaka, Kelvin Desangles and Jennal Aziz had previously pleaded guilty to fraud in federal court and were sentenced to more than 200 months in prison.

The cases were investigated by the U.S. Intelligence Savannah Resident Office, with assistance from the Los Angeles Field Office and Global Investigative Operations Center, the FBI and the Royal Canadian Mounted Police, and followed up by the Criminal Investigation Department of the U.S. District Attorney’s Southern District of Georgia, Senior Trial Attorney Mona Sedky, of the US Department of Justice’s cybercrime and intellectual property division, and Assistant US Attorney Khaldoun Shobaki, of the US Attorney’s Office for the Central District of California.

WBGO and the Leisure World mourn the lack of TV, Movie and Stage Actress and Singer and Jazz Educator and Supporter Suzzanne Douglas

WBGO and the entertainment industry mourn the loss of actress and signatory Suzzanne Douglas, who was best known for her leading role in the Robert Townsend sitcom “The Parent ‘Hood.

Suzzanne Douglas died yesterday at the age of 64. Her loving husband Jono says Suzzanne died Tuesday of cancer-related complications in her vacation home on Martha’s Vineyard. In an interview on WBGO in 2017, she confirmed her love for jazz as a performer, teacher and student.

“Historical, vital, necessary. Those are words that come to mind when I think of jazz, but of WBGO.”

Douglas has had many television roles and was a huge hit at the George Street Playhouse where she talked about how to engage audiences after the show ended. In this case, it was American Son at the George Street Playhouse.

“I want people to get out of the theater not only to have a dialogue about the show, but also to be very proactive at home with their kids and then bring it to their communities.”

A caring and special lady who even played the role of Billie Holiday at GSP. She is greatly missed and our hearts are with her family.

You can hear the entire 2017 interview with Suzzanne Douglas and John Bolger at https://www.wbgo.org/show/wbgo-journal/2017-02-10/emotions-run-high-in-george-street-playhouses-american-son.

Revealed the secrets and techniques behind Insurgent Wilson’s unbelievable weight reduction | Leisure

Rebel Wilson’s doctor revealed how the Hollywood star lost five stones and turned her life in a healthier direction.

The ‘Pitch Perfect’ actress, who rose to fame with her role as Fat Amy on the 2012 rom-com, shared her weight loss results on her Instagram this week.

The selfie shows the Australian star on the set of her upcoming film ‘Senior Year’ in a pink satin dress that shows off her incredibly slimmer figure.

The star previously weighed about 16 and a half stones while it was 5 feet 2 inches tall.

By the end of last year, however, she had lost more than four and a half pounds and reached her target weight of eleven and a half pounds.

The secret behind the transformation of the 41-year-old actress is the strict regime of a wellness center in Austria, which prohibits alcohol, coffee and sugar and “cancels” dinner.

The star visited this extreme health camp, the Vivamayr Altaussee Center at Altaussee, Austria, twice, most recently in November last year.

Maximilian Schubert, one of the doctors on the health center’s team, told the Sunday Mirror: “Rebel has done amazingly well. Her willpower, discipline and focus on her health journey were her success.”

Dr. Schubert not only praised Rebel’s commitment to being “disciplined” but also revealed the details of the diet plan followed at the center.

Sugar, caffeine, alcohol and raw vegetables are not allowed as part of the detoxification process.

Guests are encouraged to chew each bite 40 times to aid the digestive process.

The nutrition plan, based on the Mayr cure, aims to reduce gluten and milk intake, avoid snacking and focus on vegetables and fish, which are highly alkaline foods.

The center was visited by other celebrities, including Liz Hurley and The Rolling Stones.

Since her last visit to the Austrian wellness center, Rebel has taken on what she calls “moderate walking”, hired a PT trainer and started listening to motivational podcasts.

In December 2020, the ‘bridesmaids’ actress announced on Instagram: “I will start in a great place in 2021, with a healthy body and mind and a strengthened immune system.”

Earlier this year, the Hollywood star spoke of her reasons for a healthy life: “I’ve never looked at wellness from all angles. But I turned 40 and thought about freezing my eggs, and the experts told me the healthier I was, the healthier I was. the better the process can run. “

“The goal was never to be thin. It was never a particular dress size to fit. I gained weight because I needed something tangible. What I’m proud of [for] does that and now I have a lot more balance in my life, “said the actress,” Shape “magazine.

New Covid research hints at long-term lack of mind tissue, Dr. Scott Gottlieb warns

Dr. Scott Gottlieb warned on Thursday of the potential for long-term brain loss related to Covid, citing new study from the UK.

“In short, the study suggests that there could be long-term loss of brain tissue from Covid, and that would have some long-term consequences,” said the former FDA chief and CNBC employee.

“You could compensate for that over time, so the symptoms of it may go away, but you will never regain the tissue if it is actually destroyed by the virus,” said Gottlieb, who is the board member of the Covid vaccine manufacturer Pfizer.

The UK study looked at brain imaging before and after coronavirus infection, specifically looking at the potential effects on the nervous system.

Gottlieb explained it to CNBC’s “The News with Shepard Smith” that the destruction of brain tissue could explain why Covid patients have lost their sense of smell.

“The decrease in the amount of cortical tissue happened by chance in regions of the brain that are near the places responsible for the odor,” he said. “What it suggests is that the odor, the loss of smell, is just an effect of a more primary process that is going on, and that process is actually the shrinking of the cortical tissue.”

Disclosure: Scott Gottlieb is a CNBC employee and a member of the board of directors of Pfizer, genetic testing startup Tempus, health technology company Aetion Inc., and biotechnology company Illumina.

Renee Stewart mourns lack of her canine | Arts & Leisure

Sir Rod Stewart’s daughter Renee mourns her dog Jagger.

The 28-year-old actress, daughter of hitmaker “I Don’t Want To Talk About It” and his second wife Rachel Hunter, has paid tribute to the rescue dog she has had for 13 years.

As reported in the Daily Mail’s Sebastian Shakespeare column, Renee wrote in honor, “This is one of the hardest things I have had to go through. The grief and loss I feel is indescribable. But you are no longer in pain and…” you walked peacefully in my arms. “

In the meantime, Renee had previously opened up as Rod’s daughter.

Of her younger years, she said, “It’s just not cool to talk about your parents. When I was in school in LA and people asked me what my dad did, I would say, ‘Oh, he’s in The entertainment.’

“No disrespect to him, but you want to make your own life. You want to be your own person. If you trade it it can really screw you up and it kind of makes people flinch.”

And Renee praised her father’s long career in music, but believes that now it would be much more difficult for similar people to be successful because of social media.

She added, “Oh, Dad had an amazing time in music. He worked so hard. And of course at some point you open your mouth and wonder if a soulful, rasping voice comes out. My sister Ruby was lucky. She did Lucky the voice and is in a band [the Sisterhood]but I don’t have it.

“In terms of a music career, I actually think it might be harder to make it in music these days. I don’t think the next Rolling Stones or Naomi Campbell would have a chance to make it now because there are literally millions of people out there on social media careers start. “

Kelly Osbourne: Weight reduction surgical procedure gave me a combating probability | Leisure

Kelly Osbourne says that weight loss surgery gave her a “fighting chance” to start her life again.

The 36-year-old reality star underwent gastrointestinal surgery in 2018 and said she couldn’t be happier with her decision to go under the knife – which involves removing more than half of the stomach in the form of a sleeve or a shape Tube – after quickly gaining weight when sobered in 2017.

Speaking to Us Weekly, she said, “I got sober. I replaced drugs and alcohol with food, my body was metabolized differently. When I got sober and put on uncontrollable weight it was insane.

“[People] kept telling me, “You should do the operation.” I was so against it. … I thought the operation was an excuse and it was like a fraud. That couldn’t be further from the truth. The operation gave me a chance to fight. “

Although the surgery gave her the first boost she needed to lose weight, Kelly did not follow her doctor’s instructions after her surgery and therefore stopped seeing results.

She added to Us Weekly magazine, “I lost, I want to say, 35 pounds, 40 pounds. And then I stopped losing weight. I just stopped because I didn’t listen to what they said. I just thought it would be a quick fix. I would be done. I would be thin. [I thought I] didn’t have to exercise or do anything. I couldn’t have been more wrong. You have to do everything they tell you when you do the surgery or it will not work. “

Meanwhile, Kelly recently announced that she had relapsed her sobriety journey after four years but is now back on track.

She wrote on Instagram: “It’s a little difficult for me to talk about, but I have always promised you that I will be honest with you about where I am and what is going on on my path to recovery.

“I’ve fallen behind, not proud of it, but I’m back on track and I’m going to do a podcast this week telling everyone what’s going on and what happened.

“I just want you to know that I’m sober today and I’ll be sober tomorrow.

“But I really learned that it is only one day at a time and I wanted to tell you the truth because I never want to lie to you.

“Thank you for your support and love and you will hear from me soon.”