Boeing sales and profit plummet in 737 Max fallout

Airline division lost $40 million, earnings down 43% from same period last year

Boeing reported sharp quarterly drops in sales, earnings and airplane deliveries on Wednesday as it continued to struggle with the fallout from the deadly crashes of two 737 Max jets.

With the Max still grounded, Boeing has ceased deliveries of its most popular product, throwing the company into turmoil.

The company said sales fell 21% from the same period last year to $20 billion. Earnings fell 43% to $1.26 billion.

The commercial airlines division lost $40 million from July to September after earning more than $2 billion in the same period a year ago. And commercial airline deliveries plummeted 67% in the quarter, with Boeing delivering just 62 planes.

The company said costs related to Max production increased by $900 million in the quarter, but did not provide an update on the total amount it expected the Max crisis to cost the company.

Boeing’s chief executive, Dennis A. Muilenburg, told analysts on a conference call he still expected the Federal Aviation Administration to clear the Max to fly in the next three months. The company recently conducted a dry run of the certification test flight that would set in motion the process of bringing the plane back to service, he said.

Boeing also announced setbacks to some of its other commercial airline programs. It will temporarily reduce the production rate for the 787 Dreamliner because of soft demand as a result of the global trade environment. And Boeing said it expected the first deliveries of the 777x, another

long-haul plane, to take place in 2021 rather than 2020.

“Our top priority remains

the safe return to service of the 737 Max, and we’re making steady progress,” Muilenburg said in a statement.

Boeing is mired in the biggest crisis of its 103year history. The Max remains grounded after

seven months, and Boeing has said further delays could cause it to temporarily shut down production of the plane, a move that would have sweeping financial consequences.

The company has recently shaken up its top leadership. It ousted Kevin McAllister, the head of commercial airplanes, on Tuesday. And earlier this month, Boeing stripped Muilenburg of his title as chairman and elevated its lead independent director, David Calhoun, to the role.