(30 January 2020)DAILY MARKET BRIEF 1:Boeing Posts Full-Year Loss Amid 737 MAX Setbacks

Boeing Co. reported its first annual loss in more than two decades and said the costs from the 737 MAX crisis have climbed above $19 billion. The MAX has been grounded world-wide since last March following a pair of plane crashes within five months of each other that killed 346 people. The crashes have raised questions about the plane's design, have hurt the company's relationships with suppliers and customers, and led to the ouster of its chief executive. Wednesday, Boeing booked another $9.2 billion in charges and associated costs in the fourth quarter to cover potential compensation to MAX customers as well as higher expenses from reducing and then halting production of the jetliner following the crashes. The Chicago-based company also said it would make another cut in 787 Dreamliner production next year and booked more charges on its military tanker and space-taxi programs, underlining mounting challenges facing new Chief Executive David Calhoun and his team. Shares of Boeing, down 4% over the past month, rose 2%. The pool of customer compensation was increased by $2.6 billion in the latest quarter to take the expected bill to $8.8 billion for 2019. Higher production costs for the MAX added another $6.2 billion.

By Ipek Ozkardeskaya