Julie Johnsson’s Post

Boeing Financial Losses Reach $32 Billion Since 2019 Boeing has faced an unprecedented $32 billion in financial losses over the past five years, marking one of the most challenging periods in the aerospace giant's history. The company, a crucial player in the duopoly of full-size passenger jet manufacturing, has been grappling with both internal and external pressures that have pushed it into a severe financial downturn. Unsustainable Financial Path Despite having a significant backlog of more than 5,600 commercial jets valued at approximately $529 billion, Boeing's financial woes continue... https://lnkd.in/gF8iZvhR

The Downfall of Boeing: A Cautionary Tale of Financial Priorities Over Engineering Excellence "Everything had to be cost justified" "Moving away from its roots, saving cash" In recent years, Boeing, once the crown jewel of aerospace innovation, has faced unprecedented challenges. The roots of these issues can be traced back to a fundamental shift in the company's culture and priorities, driven largely by financial decision-makers. What Went Wrong? Cost-Cutting Over Quality: Financial pressures led to aggressive cost-cutting measures. These included outsourcing critical components to save money, which often resulted in compromised quality and increased risks. Rushed Production Schedules: To meet financial targets and compete with Airbus, Boeing accelerated production schedules. This haste contributed to critical oversights and lapses in quality control, most notably in the 737 MAX program. Neglecting Engineering Feedback: Financial leaders often sidelined the concerns of engineers and safety experts. Decisions were made based on short-term financial gains rather than long-term sustainability and safety. Stock Buybacks: Instead of investing profits back into R&D and improving their products, Boeing spent billions on stock buybacks to appease shareholders. This move depleted reserves that could have been used for innovation and crisis management. The Consequences 737 MAX Crisis: The culmination of these financial decisions was the tragic failure of the 737 MAX, which led to two fatal crashes, grounding of the fleet, and a massive loss of trust and financial damage to Boeing. Reputation Damage: Boeing's once-sterling reputation for engineering excellence has been severely tarnished, affecting relationships with airlines, regulators, and the flying public. Financial Losses: The financial fallout from the 737 MAX crisis has been staggering, with billions in losses, compensation payouts, and a plummeting stock price. Lessons Learned Boeing's story serves as a powerful reminder of the dangers of prioritizing financial metrics over core business values. Sustainable success in any industry, especially one as complex and high-stakes as aerospace, requires a balanced approach that values innovation, safety, and engineering integrity as much as financial performance. As we move forward, let’s advocate for leadership that understands the critical balance between financial health and the foundational principles that drive our industries forward. #Boeing #Aerospace #Leadership #BusinessStrategy #EngineeringExcellence #FinancialDecisions #CorporateCulture #LessonsLearned

Boeing's financial struggles deepen as the company warns of a bigger cash burn and no cash generation for the full year. With cascading production and supply-chain issues, shares fell over 7% and have lost a third of their value in 2024, erasing $50 billion in market cap. Production of 737 MAX jets is slow, quality problems persist, and regulatory scrutiny increases. Boeing aims to generate cash in the second half of the year, but faces ongoing challenges. #Boeing #Aviation #Finance #737MAX #StockMarket #SupplyChainIssues

Boeing’s market value in 2017 was two and half times its only rival now it is roughly the same. Since 2019, when the entire 737 max fleet was grounded for nearly two years after two fatal accidents attributable to faulty software, Boeing’s combined annual net losses have amounted to $24.5bn. In that period Airbus has made profits of nearly $10bn. Boeing’s orders of 5,700 planes are far below the 7,700 in the European firm’s books. The roots of Boeing’s many crises are summed up by Aviation Strategy, a consultancy. An “obsession with quarterly results and share price momentum” resulted in too much cash being returned to shareholders and too little put into developing new products or ensuring production quality.

From Dreamliner to nightmare: How is Boeing falling behind? Here's my POV and the summary of the Think School ® YouTube video : https://lnkd.in/gXTAHhXt Boeing, a name synonymous with aviation excellence for over a century, has recently hit some turbulence. While the reasons are complex, this video sheds light on a potential culprit: a shift in focus from prioritizing quality airplanes to short-term profits. A Passion for Flight, or a Focus on the Bottom Line? The video suggests a move away from Boeing's core value of building best-in-class airplanes. It highlights some concerning trends: Outsourcing Woes: In an effort to cut costs, Boeing outsourced a significant portion of the 787 Dreamliner design and manufacturing. This, according to the video, resulted in complications and a ballooning budget. Stock Buybacks vs. Innovation: The video points out that Boeing repurchased a staggering $61 billion of its own stock. While this might have boosted earnings per share, it arguably diverted funds from crucial investments in new airplane development. Cost-Cutting Concerns: The video alleges that Boeing cut corners on 737 Max development to save money, including significant employee layoffs. Management in Question: The video raises a critical point - did Boeing prioritize profits over safety and innovation? For instance, it suggests Boeing withheld crucial information from pilots regarding a new system on the 737 Max, potentially linked to two fatal crashes. Has Boeing Lost its Way? The video paints a concerning picture of a company potentially prioritizing short-term gains over its long-held reputation for quality and safety. This shift in focus, if true, could explain Boeing's current struggles. What do you think? This video has sparked a lively discussion. Is Boeing on the right track? Where should they go from here? Let's keep the conversation going in the comments below! Follow Harsh Dhakar for more business talks ✅ #Boeing #Aviation #Manufacturing #Innovation #Safety #Business #Engineering #FutureofFlight #CommercialAirlines #Aerospace #ShareholderValue #737Max #Dreamliner #QualityControl #TurnaroundStrategy

Boeing has weathered a turbulent first quarter, marked by challenges and setbacks, yet the aerospace giant remains resilient in the face of adversity. Despite reporting a narrower-than-expected core loss per share, Boeing’s revenue surpassed forecasts, reflecting the company’s ability to adapt and navigate through difficult times. According to Pras Subramanian, Yahoo Finance, the first quarter results reflect Boeing’s proactive measures to address production issues in its 737 fleet, with CEO Dave Calhoun emphasizing the company’s commitment to enhancing quality and safety management systems. While facing increased scrutiny and decreased overall plane production, Boeing’s shares saw a notable uptick in pre-market trade, signaling investor confidence in the company’s ability to rebound. However, Boeing’s challenges extend beyond its financial performance. Recent incidents, such as the door plug blowout and subsequent grounding of the 737 Max 9 fleet, have intensified scrutiny of Boeing’s production and safety processes. This, coupled with heightened scrutiny of assembly processes and calls for deeper investigations, underscores the importance of bolstering transparency and accountability within the organization. Despite these challenges, Boeing remains a key player in the aerospace industry, evidenced by its robust order backlog and continued demand for its wide-body commercial jets. Boeing’s defense business remains a cornerstone of its operations, serving governments worldwide with a diverse portfolio of military aircraft and drones. This diversification further underscores Boeing’s resilience and long-term viability in the aerospace sector. As Boeing navigates through ongoing challenges and works towards strengthening its operations, the company’s commitment to safety, quality, and innovation will be paramount in securing its future success. With a steadfast focus on addressing issues head-on and leveraging its industry expertise, Boeing is expected to emerge stronger and more resilient in the quarters ahead. https://lnkd.in/gQcXCm_Y #HalifaxWest #WinTogether #capitaladvisory #MandA #restructuring #operatingadvisory #Boeing #aerospace #aviation #resilience #quality #safety #innovation #industry #challenges #financialresults #defense #aircraft #manufacturing #investing #leadership #futureofaviation #finances #financialchallenges

John Oliver did a great segment on Boeing given recent problems with their planes, and news on internal communications and employee sentiment. I can't help but find similarities in the business models of many firms. Cut costs, take shortcuts, pad the financials to beat earnings for a higher stock price or potential exit, looking away from quality and brand reputation to higher short-term margins, and the next buyer holds the bag- reminiscent of a pump & dump. It makes sense for flipping a company in a short-term investment, thinking profit only. However, given it can obviously can be devastating over a larger time horizon (both for the investors who held as well as the employees & customers), when will the market learn to properly valuate organizations that have sacrificed future business to inflate the present? Should government also intervene to uncover these risks earlier in public filings?

📰 Boeing's 737 Max Crisis: How Will It Impact the Company's Financial Performance? 😮 Investors are on the edge of their seats, waiting to see the aftermath of the 737 Max 9 crisis on Boeing's financials. Will the damage be irreparable? 💸 Analysts predict a loss per share of 78 cents for Boeing. Ouch! But hey, who needs profits when you have faulty airplanes, right? 🔍 Federal investigators are looking into the Max 9 plane and the possibility of an improperly installed door plug. Someone forgot to tighten a few screws, it seems. Oops! 😡 Angry customers are not happy with the production flaws that have delayed deliveries. Waiting a little longer for a plane with technical issues? Talk about playing Russian roulette with airplanes! 💔 Meanwhile, Airbus is laughing all the way to the bank, surpassing Boeing in delivering new aircraft. Second-best never felt so good, huh? ✈️ The Max 9 is cleared to fly again, but Boeing's production ramp-up is put on hold. Perhaps they realized that more faulty planes in the sky is not the best idea. Surprise, surprise! 💼 CEO Dave Calhoun is on the case, promising transparency and fixing things. Because nothing screams confidence like a CEO showing up after a crisis, right? Bravo, Mr. Calhoun. Bravo. ⏰ Will Boeing's profits take a nosedive? Will customers jump ship? Time will tell. One thing's for sure, the 737 Max is living up to its name. It's a maximum disaster. 🔎 Stay tuned for the latest updates on Boeing's financial targets and reputation. Share this post to spread the word and join the conversation! #BoeingCrisis #737MaxDisaster #TransparencyMatters #AirlineIndustry 👉 Read the full article here: [insert ] #Boeing #FinancialPerformance #AviationCrisis #Investors #Airplanes #Max9 #BusinessNews #EarningsResults article: https://buff.ly/3HKu2Ty

Report: Boeing 'Put Wall Street First, Safety Second', Creating 'Yearslong Decline of Safety Standards': The Seattle Times has a Pulitzer Prize-winning aerospace journalist named Dominic Gates. Sunday he published an expose on "a yearslong decline of safety standards" at Boeing. After a 1997 merger, its new executive leaders "treated experienced engineers and machinists as expendable, ignoring the potential damage to Boeing's essential mission of designing and building high-quality airplanes...." The arc of Boeing's fall can be traced back a quarter century, to when its leaders elevated the interests of shareholders above all others, said Richard Aboulafia, industry analyst with AeroDynamic Advisory. "Crush the workers. Share price. Share price. Share price. Financial moves and metrics come first," was Boeing's philosophy, he said. It was, he said, "a ruthless effort to cut costs without any realization of what it could do to capabilities...." Its leaders outsourced work, sold off whole divisions and discarded key capabilities such as developing avionics, machining parts and building fuselages. On the 787, they even outsourced the jet's wings to Japan. They moved work away from Boeing's highly skilled, unionized base in the Puget Sound region. They weakened unions and extorted state government with repeated threats to build future airplanes elsewhere. They squeezed suppliers by demanding price cuts every year that in turn forced the suppliers into ruinous cost-cutting and left them vulnerable to collapse during shocks like the COVID-19 pandemic.... Belatedly, Boeing's current leaders, overwhelmed by criticism, mockery and outrage since January, have finally admitted publicly that some key strategies they pursued for decades were flawed. "Boeing, more than 20 years ago, probably got a little too far ahead of itself on the topic of outsourcing," Chief Financial Officer Brian West said last month. And in January, on CNBC, Boeing Chief Executive Dave Calhoun conceded: "Did it go too far? Yeah, probably did." Both were speaking about major supplier Spirit AeroSystems of Wichita, Kan., part of Boeing until it was sold off two decades ago, part of a broad divestment of assets to please Wall Street and boost the stock. Following a litany of quality lapses in Wichita, Boeing is now admitting a mistake and trying to buy Spirit back — "for safety and for quality," said West. Another mistake belatedly recognized: With annual bonuses for Boeing's factory managers based largely on meeting cost and schedule targets, it was long a cardinal sin to stop the assembly line. That meant unfinished jobs piled up on aircraft as they moved forward down the line, what Boeing calls "traveled work." Done out of sequence, this work is more difficult and takes much longer. If too much traveled work piles up, it creates chaos. That's what happened in Renton on the 737 assembly line. "For years, we prioritized the movement of the airplane through the factory over getting it

Companies that continue to issue quarterly guidance do so under the influence of two pervasive myths – that it increases valuation and reduces volatility. Neither is true – read Sarah Keohane Williamson's latest article to learn more: