|Bid||0.00 x 42300|
|Ask||0.00 x 34100|
|Day's Range||8.61 - 9.06|
|52 Week Range||6.40 - 12.32|
|Beta (3Y Monthly)||1.14|
|PE Ratio (TTM)||N/A|
|Earnings Date||Oct 30, 2019|
|Forward Dividend & Yield||0.04 (0.45%)|
|1y Target Est||10.11|
(Bloomberg Opinion) -- Someone had to take the fall for the latest disastrous turn in Boeing Co.’s 737 Max crisis and that someone appears to be commercial airplanes chief Kevin McAllister. Boeing abruptly announced on Tuesday afternoon — less than 24 hours before it's due to report third-quarter results — that McAllister is stepping down. He joined in 2016 from General Electric Co. and oversaw the unit responsible for the troubled Max, which has been grounded for seven months following two fatal crashes. He will be replaced by Stan Deal, formerly head of Boeing’s services division, effective immediately. The leadership shakeup comes as Boeing tries to counter the reputational damage from a bombshell release last week of instant messages that appeared to indicate internal hesitation over a flight-control system on the Max years before that same software would be implicated in the accidents. The messages have raised concern that it will be politically difficult for the Federal Aviation Administration to agree to put the plane back in the air by the end of the year, even as Boeing makes progress on a fix. Boeing has pushed back on the interpretation that the messages show it misled regulators, but its explanations are unlikely to curb the ire of angry lawmakers, some of whom have already called for the ouster of CEO Dennis Muilenburg.I would like to believe that Boeing is making a serious effort at holding itself accountable. But at the end of the day, like all of the company’s efforts at redemption in the wake of the Max crisis, it appears to be reacting to criticism, rather than doing the right thing on principle. The company last month unveiled an organizational overhaul meant to help insulate its engineers from profit concerns and the board stripped Muilenburg of his chairman title on Oct. 11. But those two changes book-ended an unflattering report from the Joint Authorities Technical Review (a body of experts including international and NASA delegates) that contended regulators lacked the resources and necessary information to properly evaluate the Max’s complex design and that Boeing exerted “undue pressures” on employees that had FAA authority to approve changes. This seeming inability to embrace full accountability and transparency remains the company’s biggest problem. Until it rectifies that, it will be impossible for Boeing to truly move on from this crisis. One cynical read of this leadership change is that McAllister is simply more expendable than Muilenburg right now, with the CEO reportedly set to testify before the Senate on Oct. 29, one day before a scheduled appearance in front of the House of Representatives. I would imagine Muilenburg has spent hours preparing for that grilling, and Boeing may not have time at this point to get a replacement ready. With regard to those troubling messages, Boeing has countered that the description of the Maneuvering Characteristics Augmentation System flight-control software as “egregious” was meant to refer to a bug in a flight simulator that was being tested. The Seattle Times reports that this explanation checks out, based on three experts’ perspective. However, the FAA has rightly taken issue with the fact that Boeing reportedly turned over these documents to the Department of Justice in February – one month before the second Max crash – and yet only recently gave the information to the regulator. Boeing’s claims that the regulator was informed “multiple times” about the expanded role of the flight-control software run counter to reporting from the Seattle Times and others, as well that JATR report.Meanwhile, all major Max customers have now pulled the plane from their schedules through at least January 2020, giving up hope that it will be recertified in time for the holiday season. In his job as head of the commercial unit, McAllister was tasked not only with helping oversee the development of a fix for the flight-control system, but with managing Boeing’s relationship with customers. He appears to have fallen short on both fronts. The New York Times published a damning portrayal of McAllister last week as not being proactive enough in addressing the Max crisis with airlines and unwilling to accept criticism for the plane’s issues, which he blames on his predecessors.He is unlikely to be the last Boeing executive to be shown the door. To contact the author of this story: Brooke Sutherland at email@example.comTo contact the editor responsible for this story: Beth Williams at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brooke Sutherland is a Bloomberg Opinion columnist covering deals and industrial companies. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Boeing Commercial Airplanes CEO Kevin McAllister is leaving the jet maker. Stanley Deal, CEO of Boeing Global Services, will succeed him.
United Technologies earnings unexpectedly accelerated for a second straight quarter. The Dow Jones component moved above a buy point.
United Technologies CFO Akhil Johri is leaving the industrial conglomerate on November 1. But there is a notable CFO vacancy to fill in coming months, at GE.
Bombardier today announced a Preferred Service Provider (PSP) agreement with GE Aviation. As of today, GE will power Bombardier’s cockpit and cabin connectivity solutions – including new, curated, service bundles that will simplify the selection of cockpit and cabin services with tip-to-tail solutions for new and in-service aircraft. This agreement is a first step toward the launch of Bombardier’s comprehensive Smart Link Plus connected aircraft program.
Many S&P 500 companies still use private jets—eschewing commercial travel for top executives—but finding out which ones do so is surprisingly hard.
Lockheed Martin released its third-quarter earnings results today. The company reported revenue of $15.2 billion in the quarter, a 6% year-over-year rise.
The Boeing Co. says it’s making “significant progress” in returning the problematic 737 MAX airplanes to service. Here’s what Boeing says it’s currently doing: “Boeing has made significant progress over the past several months in support of safely returning the 737 MAX to service as the company continues to work with the FAA and other global regulators on the process laid out for certifying the 737 MAX software and related training updates. The company has also made significant governance and operational changes to further sharpen its focus.” The fallout from grounding the 737 MAX isn’t just impacting Boeing, but its massive supply chain. For example, General Electric Co. stands to take an estimated $1.4 billion hit to its cash flow this year if Boeing Co.’s 737 MAX planes, which feature engines made by a GE joint venture, remain grounded through the rest of 2019.
Synthos, a chemical group owned by Poland's richest man Michal Solowow, has agreed to work with GE Hitachi Nuclear Energy on developing technology for a small modular reactor (SMR), Hitachi said on Monday. Poland still generates most of its electricity from coal but more and more companies are exploring low-carbon options. "Utilizing small modular reactors to generate clean energy will improve our chances to move away from coal and have a positive impact on our industry and nation," Solowow was quoted as saying.
GE Hitachi Nuclear Energy and Poland’s richest man are to team up to build Poland’s first nuclear power plant, as the central European country looks for ways to diversify its energy supplies. GEH and Synthos, the Polish chemicals group owned by Michal Solowow, said they had signed a memorandum of understanding to build a small modular reactor in Poland, which currently depends heavily on coal for its electricity. “Small modular reactors can play a significant role in addressing Poland’s energy challenges, the modernisation of the nation’s energy sector and in achieving necessary and responsible deep decarbonisation,” Mr Solowow, whose fortune is estimated by Forbes at $3.2bn, said in a statement.
GE is a complicated company, making it difficult to assess the turnaround being led by new CEO Larry Culp. Positive free cash flow, more debt reduction, and no new “hidden” debt from legacy insurance liabilities should be what it takes for the stock to keep working the rest of 2019.
Honeywell kicked off industrials earnings season, beating estimates. With Boeing, Caterpillar, 3M, GE, and more reporting soon, here's what to expect.
BHP, the world’s largest miner, said it expected to make a multimillion-pound provision this year due to a switch from coal to renewable sources of energy in Chile. The miner said it had signed four renewable power agreements for its Escondida and Spence copper mines, which will be completely run off renewable sources by the mid-2020s. “These new renewable energy contracts will increase flexibility for our power portfolio and will ensure security of supply for our operations, while also reducing costs and displacing CO2 emissions,” Daniel Malchuk, head of BHP Americas, said.
General Electric is one of the largest and, at times, most profitable multinational conglomerate in the U.S. These subsidiaries and acquisitions represent some of GE's key operational segments.
Private-label credit card leader Synchrony Financial moved toward a buy point after the IBD 50 stock bested earnings estimates Friday.
Qantas is starting research flights for the longest flight in the world with a newly delivered Boeing 787-9 Dreamliner as Airbus finalizes its offering.
Honeywell and Dover beat Q3 estimates and raised full-year guidance, boosting General Electric, United Technologies and other industrial giants.
The Boston Redevelopment Authority gave the insurance giant its OK for the project in 2015, but the company never moved forward with construction.
IBM and Netflix reported better-than-expected earnings and sales that fell a bit short of Wall Street analysts’ forecasts. IBM stock is getting hammered, while Netflix is on the rise, a sign that investors prefer growth to cash flow.