Boeing

Boeing

The suspension of its 737 Max plane will cost Boeing $4bn in "abnormal production costs" in 2020, the company said.

In the last quarter it was hit by "an additional pre-tax charge of $2.6bn related to estimated potential concessions and other considerations to customers related to the 737 MAX grounding", it revealed.

It has placed the total cost of the crisis at $18.6bn, more than double its previous estimate, as it accounts for payments to airlines, reduced profits over the plane’s production cycle and expenses tied to halting manufacturing.

Reuters

Boeing reported a $1bn loss for the fourth quarter.

For the full year, it reported a $636m loss on sales down 24% at $76.5bn. It is Boeing first annual loss since 1997.

Boeing said deliveries of new planes dropped by 53% to 380 over the year.

The company was forced to ground its 737 Max following two fatal crashes and it is does not expect the jet to return to the skies until June or July this year.

Its commercial planes division reported a $6.6bn loss for 2019 on sales 44% lower at $32.2bn.

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More on Boeing's financials.

They are the first to be published under new chief executive David Calhoun who replaced Dennis Muilenburg who was in charge when a Boeing 737 Max jet operated by Indonesia's Lion Air crashed in October 2018 and another flown by Ethiopian Airlines crashed last March.

Mr Calhoun said: "We recognise we have a lot of work to do.

"We are focused on returning the 737 MAX to service safely and restoring the long-standing trust that the Boeing brand represents with the flying public.We are committed to transparency and excellence in everything we do. Safety will underwrite every decision, every action and every step we take as we move forward."

Welcome to Business Live and a very busy day ahead.

We will learn if Northern Rail will be nationalised following months of disruption and delays.

Mike Pompeo - US Secretary of State and cartography fan - arrives in the UK for a two day visit after Britain defied the United States by allowing Huawei equipment to be used in building the 5G network.

The coronovris death toll continues to rise and businesses such as Starbucks are taking drastic steps to limit its spread.

The US Fed will announce later whether it will hold or lower interest rates.

And there is a flurry of US results. The most notable are Boeing - the first under new boss David Calhoun - as well as Facebook, McDonald's, Tesla and Microsoft.

As always, we'd love to hear from you. Email Business Live at bizlivepage@bbc.co.uk

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Crisis-hit Boeing is asking banks for $10bn or more to help it weather the 737 Max crisis, according to CNBC.

It reported that the aircraft maker is talking to banks, citing "people familiar with the matter", as the company faces rising costs stemming from two fatal 737 Max crashes.

Its report says Boeing has secured at least $6bn so far and is talking to other lenders for more contributions.