Boeing has put the total cost of the two deadly crashes of its 737 Max airliners at almost $19bn (£14.6bn) and slumped to its first annual loss in more than two decades. It is also the target of a USA criminal investigation into matters related to the 737 MAX plane.
And he criticized the company's prior leadership for not immediately disclosing a trove of damning internal communications. He promised to be more transparent. Boeing also expected the groundings of its "game-changer" aircraft to end during the period when it announced its Q3 results.
The American plane manufacturer lost $636 million in 2019, after a disappointing fourth quarter which saw a loss of $2.33 per share, the company announced on Wednesday.
The company lost $636 million for all 2019, compared with a profit of almost $10.5 billion in 2018. This is the first time it has reported a full-year loss since 1997.
The second crash occurred on March 10 when Ethiopian Airlines Flight ET 302, which also was a MAX jet, took off from Bole International Airport in the Ethiopian capital and crashed.
The company's focus, however, is on fixing the Max.
"More negative news from Boeing. on our MAX deliveries", the memo read.
United States airlines have taken the MAX off their schedules until early June and have said they need at least 30 days after FAA approval to prepare their jets and train pilots.
With its stock so beaten down "there could at some point be a tactical trading opportunity" when the plane is cleared to fly again, Credit Suisse said in a note earlier this month.
Boeing has been working on fixes to try to get the 737 Max planes back up and running.
Calhoun said Wednesday he appreciated Dickson's comments, but they wouldn't cause him to change Boeing's projection of regulatory approval by midyear because Dickson could change his tune in a month. He said board members were kept in the dark.
He told analysts the decision was not about him "not wanting to do new airplanes". The production stop came into effect on January 6, 2020, as Boeing started redeploying employees working in Renton, Washington, to other facilities that manufacture other products. The company is managing its order backlog for the Dreamliner, another critical source of cash, more conservatively under Calhoun's lead.
"But honestly right now it's all about the MAX". It will be the first earnings call for Calhoun, a former General Electric and Nielsen executive who had been on Boeing's board since 2009.
Cowen analyst Cai von Rumohr said the charge for airline compensation was about $4 billion less than most investors had feared.
Revenue tumbled to $17.9bn, far below Wall Streets forecast of $21.7bn, according to a FactSet survey of analysts.
"Technically, cash is getting better, but much of the gains come from reducing earlier guidance on costs", said John Inch, analyst at Gordon Haskett in NY.
Shares of Boeing rose 3% to $326.39 at Wednesday's opening bell.