Question

search current news (less than 6 months old) and find an article about a company reporting key financial news (e.g., landing a large contract, reporting unusual profits or losses, expressing concern for future profitability, etc.). Briefly review the news item and include the proper APA citation for that article. Why was your chosen financial event newsworthy, i.e., why do you believe this news was important? Also, why did this particular article catch your attention? Please do not duplicate articles; before you review an article, be sure no one else has already posted a review on that article. Your instructor is likely to have questions/comments on your original post so be sure to be prepared for those potential questions.

Answer 1

An article that I found was about Boeing (manufacturer of aircrafts). The article was published on July 18, 2019 by The New York Times.

The article reports key financial news with regards to Boeing and states that the recent grounding of the company’s 737 Max aircrafts will lead to increased costs for the company. The company will also have to recognize charges for this development. The company, in the press release, said that it will recognize $4.9 billion charges and the charges are associated with potential concessions and other considerations to customers for disruptions related to the 737 MAX grounding. The above charge translates to $8.74 per share. The total impact can be well over $8 billion spread over a period of time.

The article also mentioned that the company’s estimated costs to produce the aircraft in the 737 accounting quantity increased by $1.7 billion in the second quarter of 2019. This was due to increased costs associated with a higher than expected reduction in the production rate.

I believe that the news is important mainly because it talks about the recent grounding of Boeing’s 737 Max aircrafts. This event is a highly significant event for Boeing and has the potential to have large scale and significant ramifications for the company and all its stakeholders.

This article caught my attention as it talks about the problems being faced by the company in an open and transparent manner. Grounding of aircrafts is a highly significant event for any airline company and the management of Boeing showed grit and strength of character to timely acknowledge the magnitude of the problem.

APA citation:

Gelles, D. (2019). Boeing says charges tied to 737 Max grounding to reach $8 billion. The New York Times. Retrieved from https://www.nytimes.com/2019/07/18/business/boeing-737-charge.html