Boeing shares on Tuesday hit a one-year low as the Chicago aerospace giant still sees no end to the predicament that is its 737 MAX aircraft.
The stock fell more than 4% to $308, a level not seen since the late-December 2018 market selloff.
Boeing said in a statement Tuesday that it didn’t expect to the MAX to lift off again until June or July.
The company said it tried to estimate when the Federal Aviation Administration would clear the aircraft for flight and update customers and suppliers. The FAA has been cautious – understandably so – about its assessment of the aircraft.
To compensate both victims affected by the two crashes involving the MAX and the airlines that had counted on deliveries of the planes, Boeing is reportedly considering raising $10 billion of debt.
Analysts say the debt raise makes sense, as it enables Boeing to save cash in the near term so it can invest and ramp up production when the MAX is ready to fly again.
Boeing has $17 billion of net debt and is expected to see $16 billion in earnings before interest, tax and non-cash operating expenses. That leaves a net-debt-to-Ebitda multiple of just above 1, a strong figure.
Analysts expect it to post $15 billion of free cash flow for 2020 as well.
These numbers may be hurt by the expected production delay, but the company should still have the financial flexibility to navigate its current issues.
Catch up on the Latest News, Features & Webinars on TheStreet!
Business - Latest - Google News
January 22, 2020 at 03:52AM
https://ift.tt/2Riagpf
Boeing’s 737 MAX Return-to-Flight Date Pushed Back: What the Company Is Dealing With Now - TheStreet
Business - Latest - Google News
https://ift.tt/2Rx7A4Y
Bagikan Berita Ini
0 Response to "Boeing’s 737 MAX Return-to-Flight Date Pushed Back: What the Company Is Dealing With Now - TheStreet"
Post a Comment