Boeing to take $US4.9 billion charge for MAX fiasco

first_imgSouthwest Airlines 737 MAX aircraft at Victorville, California. Image: KCAL9. Boeing will take an after-tax charge of $US4.9 billion in its second quarter to cover “potential concessions and other considerations to the customers” relating to the grounding of the 737 MAX fleet and other delays.The manufacturer said the charge would result in a $US5.6 billion reduction of revenue and pre-tax earnings in the second quarter.Analysts expect the charge to wipe out any profit.“While the entire estimated amount will be recognized as a charge in the second quarter, the company expects any potential concessions or other considerations to be provided over a number of years and take various forms of economic value,’’ Boeing said in a statement issued Thursday US time.“Additionally, Boeing’s estimated costs to produce the aircraft in the 737 accounting quantity increased by $1.7 billion in the second quarter, primarily due to higher costs associated with a longer than expected reduction in the production rate.“The increased 737 program costs will reduce the margin of the 737 program in the second quarter and in future quarters.”The airline also confirmed that it did not believe it would receive regulatory approval for the return to service for the MAX until early in the fourth quarter of 2019 and that 737 production will not return to previous levels until 2020.It warned the return to service assumption reflected a “best estimate” and that “ actual timing of return to service could differ from this estimate”.“The second-quarter financial results will further assume a gradual increase in the 737 production rate from 42 per month to 57 per month in 2020, and that airplanes produced during the grounding and included within inventory will be delivered over several quarters following return to service,’’ it said.“Any changes to these assumptions could result in additional financial impact.”Boeing chief executive Dennis Muilenburg said the company remained focused on safely returning the 737 MAX to service.“This is a defining moment for Boeing. Nothing is more important to us than the safety of the flight crews and passengers who fly on our airplanes,’’ he said.“The MAX grounding presents significant headwinds and the financial impact recognized this quarter reflects the current challenges and helps to address future financial risks.”Boeing Chief Financial Officer Greg Smith said the manufacturer was taking appropriate steps to manage liquidity and increase its balance sheet flexibility “the best way possible as we are working through these challenges”.“Our multi-year efforts on disciplined cash management and maintaining a strong balance sheet, in addition to our strong and broad portfolio offerings, are helping us navigate the current environment,” he said.Boeing’s previous 2019 financial guidance did not reflect the MAX problems and the company said the uncertainty and conditions regarding the return to service meant new guidance would be issued at a future date.The company is due to release its second-quarter earnings on July 24.last_img read more

Enterprise File Sync and Share (EFSS): Less Than One Tenth of Today’s Stand-Alone EFSS Systems Will Still Exist in 2018

first_imgMore than 140 different vendors are currently selling enterprise file sync and share services (EFSS) according to Gartner.  The market can’t sustain that many vendors and products and will be forced to consolidate.  Gartner selected the top 16 vendors from the field and included them in their recent Magic Quadrant report on EFSS.The Gartner report found that because there are so many vendors active in this space that “market consolidation is ongoing. Small EFSS destination vendors will be acquired by larger IT vendors in adjacent markets and added to their core products as extensions. By 2018, less than 10% of today’s stand-alone EFSS offerings will exist.”Whitney Bouck, Box SVP and general manager of enterprise, said that “this is a highly competitive and fast-growing market, as nearly every business in the world is looking for technology to power new ways of working to increase productivity and collaboration across their organization.”Features which Gartner considered important for enterprise file sync and share products include:MobilitySecurityAdministration and ManagementBack-end server integration, like with more fully featured ECM systemsContent ManipulationCollaborationSimplicity and UsabilityStorageVineet Jain, CEO of EFSS business Egnyte, said that “it has become increasingly clear that value-added files services with a hybrid focus of security and innovation around user experience is the key to survive and win long-term.”Gartner identified four leaders in the EFSS space: Citrix, Syncplicity, Box and Accellion.last_img read more

Give the accused fair chance to explain, pleads Imran

first_imgPakistan’s former cricket captain Imran Khan on Monday pleaded for the cricketers accused in the spot-fixing controversy in England to be given a fair chance to clear their names, but said if the allegations came out true it would be a “big setback”.”I think the initial impact of this new fixing scandal has shocked all of us but I think in all fairness it would be injustice to brand these players as fixers without first giving them a fair chance to defend themselves,” Khan said.”I would like to see them given a fair chance to give their side of the story before we reach conclusions,” the former cricketer turned politician said.Imran was also clear that if the players were found guilty of accepting bribes then they should not be spared and given strong punishment.”But first let’s be clear about this whole thing because it is not fair to jump to conclusions”.Imran had no doubt that if the allegations against the players were proved true it would be a great tragedy for Pakistan cricket.”It would be a big setback because we will lose many of our match winners and that definitely would be a big shock to our cricket,” he added.The former captain who led Pakistan to victory in the 1992 World Cup also feared that if there was truth in the fresh fixing allegations it would have a negative impact on cricket on the whole.”It would be difficult to draw in crowds and make people believe it was a fair cricket match being played anywhere in the world,” he said.advertisementIronically on Monday another former captain and great, Javed Miandad urged the Pakistan board to call back the players from England who have been accused of fixing.last_img read more

Manitoba budget Provincial sales tax to drop spending tightly controlled

first_imgWINNIPEG — Manitoba’s Progressive Conservative government introduced its 2019-2020 budget on Thursday. Here are some of the highlights:— The provincial sales tax is to drop to seven per cent from eight as of July 1, saving an average household $350 a year.— Ambulance fees to be capped at $250, down from $340.— Funding for the film and video production tax credit to double to $31.5 million a year due to a growing number of projects.— Operating funding for health, education and other areas to be tightly controlled. Spending increases to be below one per cent.— Infrastructure spending on highways, airports and other items to drop by two per cent.— Deficit forecast to be $360 million, down $161 million from the current fiscal year.The Canadian Presslast_img read more

VIP Experiences Available At Summer Classic Celebrity Basketball Game

first_imgIfOnly, an experiential marketplace that helps raise money for not-for-profit organizations, announced today that they have partnered with Roc Nation and their chosen charities, PitCCh In Foundation and RC22 Foundation, to offer an extraordinary VIP experiences at the Roc Nation Summer Classic Celebrity Basketball game.Roc Nation Summer Classic VIP Experiences are sold on IfOnly.comRobinson Cano and CC Sabathia will host the Summer Classic Charity Basketball Game at Barclays Center on Thursday, August 21. Sabathia and Cano will serve as captains to two celebrity basketball teams headlined by additional honorary captains, Carmelo Anthony and Kevin Durant.IfOnly is offering Two Amazing Experiences at the game: • Be a Judge in the Slam Dunk Contest: You now have the unique opportunity to decide the fate of the dunk artists of Roc Nation’s Summer Classic Basketball Game as you judge the halftime slam dunk contest with legendary, hall of famer Nate “Tiny” Archibald. This package includes two premium tickets to the Roc Nation Summer Classic basketball game. Then, at halftime, your friends will watch in awe as you go courtside to judge the slam dunk contest. You can enter here.• Ultimate Roc Nation Summer Classic Kids Package: Surprise your child with the chance to be a ball boy while you enjoy premier seating on the lower level. Your kid will watch the game on the court under the basket and also get a photo with one of the star celebrity players. Watch as you give your budding NBA player an experience they will remember for years. Click here to find out more.last_img read more

Jets Keep Getting Better Sign RB Chris Johnson

Chris Johnson signs two-year deal with Jets.The New York Jets first made a free-agent splash when they signed quarterback Michael Vick. They made an even bigger wave in securing former Tennessee Titans running back Chris Johnson Wednesday.Once the most explosive ball carrier in the NFL, Johnson inked a two-year deal worth up to $9 million, a league source told ESPN. The base value of the deal is $8 million, and includes another $1 million in incentives,  league sources said. Johnson’s deal has a team option for the second year at $4 million, which would have to be picked up in February 2015, according to a league source.“I see this as a team on the rise,” Johnson told the team’s website. “This is a winning team. They didn’t make the playoffs last year, but I think they were a game out of the playoffs with a rookie quarterback. So I feel like this is a team that can do some good things.”If Johnson, 28, can return to form, he will be a significant addition. He ran for a career-low 3.9 yards per carry last season. This after rushing for 1,000-plus yards in his each of six seasons, including 2,006 yards in 2009. But his production diminished in recent years, and his high salary made him expendable to the Titans.Johnson underwent surgery in late January to repair a torn meniscus in his right knee and resumed running only about a month ago. He said after the season that he first hurt his knee in Week 3. He didn’t miss any games and became the fifth player in league history with 1,000 rushing yards in each of his first six seasons.“I think I’m going to fit in pretty well,” Johnson said on the website. “Just talking to (offensive coordinator Marty Mornhinweg) and to (coach) Rex (Ryan), who’s a guy that likes to run the ball, I think I’m going to fit in very well. We talked about all those things, catching out of the backfield, getting the ball to me in space.”Johnson and Vick could end starters, as well as the Jets’ other free-agent signing of consequence, receiver Eric Decker, formerly of the Denver Broncos. read more

Private hospital in New Town faces power cut due to rain

first_imgKolkata: A private hospital meant for children in New Town witnessed power cut following heavy rainfall on Tuesday.According to sources, as the basement of the hospital got waterlogged, the metre room was flooded. Electricity had to be disconnected as it could have caused short-circuit, leading to an untoward incident.Since Tuesday evening, the power had gone off at the hospital. Later, it was restored only in some portions of the hospital. To ease the problem, the hospital authority shifted a good number of patients to their Park Street branch within a short period of time. Several guardians of the patients were agitated. Later, the hospital authority restored power in the portion where patients were staying with the help of a generator. Also Read – Rain batters Kolkata, cripples normal lifeAccording to sources, the authority has been asked to check whether their drainage system is working properly.An HIDCO official said: “The pump at their basement could not work properly as the area was waterlogged due to heavy rain. It happened to other major buildings in New Town as well on Tuesday.””Due to unnatural rain on Tuesday, the water went down to our basement. After being informed, the authority helped us. As a security measure, connection was cut off. Though it can be restored, we are not doing it before the basement area gets totally dry,” said Bijay Dwibedi, a high ranked official from the hospital authority on Wednesday.last_img read more