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Westlake Legal Group > Company Reports

Saudi Aramco Sets Its Market Value at Up to $1.7 Trillion

Westlake Legal Group 17aramco-sub-facebookJumbo Saudi Aramco Sets Its Market Value at Up to $1.7 Trillion Stocks and Bonds Saudi Aramco Saudi Arabia Oil (Petroleum) and Gasoline Mohammed bin Salman (1985- ) Initial Public Offerings Company Reports

Saudi Aramco, the world’s largest oil company, offered more details on the enormous share offering it is planning for December, setting an overall market value of the company of as much as $1.7 trillion, a figure short of the $2 trillion initially estimated by Crown Prince Mohammed bin Salman.

Still, the company could raise close to $26 billion when it offers shares to the public, a total that could make it the largest initial public offering ever.

Aramco said in a statement that the offering price for its shares would be between 30 and 32 riyals, or about $8 to $8.50 per share, and that 1.5 percent of the company, amounting to three billion shares, would be sold. That would set the value of the company between $1.6 trillion and $1.7 trillion.

Aramco said that it would publish the final price on Dec. 5. Trading on the Riyadh stock market, the Tadawul, is expected to commence around Dec. 12.

The I.P.O. could eclipse the amount generated by the Chinese e-commerce giant Alibaba on the New York Stock Exchange in 2014. The company raised nearly $22 billion on its first day of trading, and within a few days that figure reached about $25 billion.

Neil Beveridge, an analyst at Bernstein, a market research firm, said on Sunday that the price range being set by the Saudis was “above what we consider a fair price for the company and above what many institutional investors consider a reasonable price.” Bernstein pegs the company’s value at $1.2 trillion to $1.5 trillion, although other analysts have estimated that it’s higher.

Mr. Beveridge said Aramco seemed to be prioritizing a high valuation through sales to individual Saudi investors, who may be willing to pay a higher price for a national champion, and, possibly, sovereign wealth funds of friendly countries, rather than putting a larger portion of shares to a wider market.

Publication of the offer range is another milestone in what has been an agonizingly slow process since Prince Mohammed, Saudi Arabia’s de facto ruler, first broached the idea making the crown jewel of the Saudi economy a public company more than two years ago. After big early promises, the Saudis have recently taken a more cautious approach, restricting the listing initially to Saudi Arabia, avoiding the more rigorous disclosures that would be required in New York or London.

Aramco is enormously profitable, earning net income of $111 billion in 2018, but the company will be selling shares in a tough environment. Oil companies are out of favor with investors, who worry that concerns about the role of fossil fuels in climate change will eventually curb demand for Aramco’s large reserves of oil and gas.

Last week, the International Energy Agency forecast that world oil demand would flatten out in the 2030s, thanks to increasingly efficient car engines and rising use of alternative energy sources.

In the shorter term, there also concerns that the combination of growing oil supplies from the United States, Canada, Brazil and other producers and weaker demand because of a slowing world economy may weigh on oil prices, reducing Aramco’s profitability and potentially threatening its ability to pay the large dividends that it is promising investors.

The aerial attacks on Aramco facilities in September highlighted to potential investors the geopolitical risks of operating in the Persian Gulf. Iran was blamed for the attack, which temporarily forced the company to cut production by more than half.

More broadly, the killing of the dissident journalist Jamal Khashoggi by Saudi agents last year has hurt the reputation of Prince Mohammed, and may repel some investors.

The money raised will probably go not to further investment in Aramco but to the Public Investment Fund, a sovereign wealth fund that has become the crown prince’s main vehicle for reshaping the Saudi economy. The fund has been investing in technology companies like Uber, and it is also backing large real estate programs in the kingdom in an effort to attract tourists and new businesses.

Despite the frustrations of a process interrupted by stops and starts, Aramco has had little trouble recruiting some of the world’s major financial institutions to help sell its stock. Citigroup, JPMorgan, Goldman Sachs, HSBC and Morgan Stanley are all listed as financial advisers in the offer documents.

They are attracted by the potential fees and the possibility that Aramco will eventually expand the listing to an international exchange like New York or London. But there is also expected to be a strong flow of Saudi debt offerings and other transactions — more sources of revenue for Wall Street.

Real Estate, and Personal Injury Lawyers. Contact us at: https://westlakelegal.com 

Saudi Aramco Sees Itself as a $1.7 Trillion Company

Westlake Legal Group 17aramco-sub-facebookJumbo Saudi Aramco Sees Itself as a $1.7 Trillion Company Stocks and Bonds Saudi Aramco Saudi Arabia Oil (Petroleum) and Gasoline Mohammed bin Salman (1985- ) Initial Public Offerings Company Reports

Saudi Aramco, the world’s largest oil company, offered more details on the enormous share offering it is planning for December, setting an overall market value of the company of as much as $1.7 trillion, a figure short of the $2 trillion initially estimated by Crown Prince Mohammed bin Salman.

Still, the company could raise close to $26 billion when it offers shares to the public, a total that could make it the largest initial public offering ever.

Aramco said in a statement that the offering price for its shares would be between 30 and 32 riyals, or about $8 to $8.50 per share, and that 1.5 percent of the company, amounting to three billion shares, would be sold. That would set the value of the company between $1.6 trillion and $1.7 trillion.

Aramco said that it would publish the final price on Dec. 5. Trading on the Riyadh stock market, the Tadawul, is expected to commence around Dec. 12.

The I.P.O. could eclipse the amount generated by the Chinese e-commerce giant Alibaba on the New York Stock Exchange in 2014. The company raised nearly $22 billion on its first day of trading, and within a few days that figure reached about $25 billion.

Neil Beveridge, an analyst at Bernstein, a market research firm, said on Sunday that the price range being set by the Saudis was “above what we consider a fair price for the company and above what many institutional investors consider a reasonable price.” Bernstein pegs the company’s value at $1.2 trillion to $1.5 trillion, although other analysts have estimated that it’s higher.

Mr. Beveridge said Aramco seemed to be prioritizing a high valuation through sales to individual Saudi investors, who may be willing to pay a higher price for a national champion, and, possibly, sovereign wealth funds of friendly countries, rather than putting a larger portion of shares to a wider market.

Publication of the offer range is another milestone in what has been an agonizingly slow process since Prince Mohammed, Saudi Arabia’s de facto ruler, first broached the idea making the crown jewel of the Saudi economy a public company more than two years ago. After big early promises, the Saudis have recently taken a more cautious approach, restricting the listing initially to Saudi Arabia, avoiding the more rigorous disclosures that would be required in New York or London.

Aramco is enormously profitable, earning net income of $111 billion in 2018, but the company will be selling shares in a tough environment. Oil companies are out of favor with investors, who worry that concerns about the role of fossil fuels in climate change will eventually curb demand for Aramco’s large reserves of oil and gas.

Last week, the International Energy Agency forecast that world oil demand would flatten out in the 2030s, thanks to increasingly efficient car engines and rising use of alternative energy sources.

In the shorter term, there also concerns that the combination of growing oil supplies from the United States, Canada, Brazil and other producers and weaker demand because of a slowing world economy may weigh on oil prices, reducing Aramco’s profitability and potentially threatening its ability to pay the large dividends that it is promising investors.

The aerial attacks on Aramco facilities in September highlighted to potential investors the geopolitical risks of operating in the Persian Gulf. Iran was blamed for the attack, which temporarily forced the company to cut production by more than half.

More broadly, the killing of the dissident journalist Jamal Khashoggi by Saudi agents last year has hurt the reputation of Prince Mohammed, and may repel some investors.

The money raised will probably go not to further investment in Aramco but to the Public Investment Fund, a sovereign wealth fund that has become the crown prince’s main vehicle for reshaping the Saudi economy. The fund has been investing in technology companies like Uber, and it is also backing large real estate programs in the kingdom in an effort to attract tourists and new businesses.

Despite the frustrations of a process interrupted by stops and starts, Aramco has had little trouble recruiting some of the world’s major financial institutions to help sell its stock. Citigroup, JPMorgan, Goldman Sachs, HSBC and Morgan Stanley are all listed as financial advisers in the offer documents.

They are attracted by the potential fees and the possibility that Aramco will eventually expand the listing to an international exchange like New York or London. But there is also expected to be a strong flow of Saudi debt offerings and other transactions — more sources of revenue for Wall Street.

Real Estate, and Personal Injury Lawyers. Contact us at: https://westlakelegal.com 

G.M. Puts Strike Impact on 2019 Earnings at Almost $3 Billion

Westlake Legal Group 16uaw-workers10-facebookJumbo G.M. Puts Strike Impact on 2019 Earnings at Almost $3 Billion Strikes General Motors Company Reports Automobiles

With a lengthy strike finally behind it, General Motors offered its first look Tuesday at some of the financial fallout.

For the full year, G.M. said the strike’s impact on earnings was likely to be almost $3 billion.

G.M. reported that its third-quarter net income was $2.3 billion, down 9 percent from $2.5 billion in the same period in 2018.

The company earned $1.72 per share in the quarter on an adjusted basis, which ended Sept. 30, compared with $1.87 per share in the same quarter last year. It said the strike had cost $1 billion in the quarter, reducing earnings by 52 cents a share.

Revenue declined to $35.5 billion from $35.8 billion.

The strike’s effect on earnings will be greater in the fourth quarter because it shut down G.M.’s North American operations for almost all of October.

The company’s 49,000 union employees walked off the job on Sept. 16, idling 34 plants across the Midwest and South for the final two weeks of the third quarter. Most of G.M.’s plants in Mexico and Canada were also affected.

The strike was settled last week when the contract was ratified by a majority of the United Automobile Workers union members employed by G.M. Workers began returning to work over the weekend.

“Our new labor agreement maintains our competitiveness, preserves our operating flexibility and allows us to continue improving our quality and productivity,” G.M.’s chief executive, Mary T. Barra, said in a statement Tuesday. “We remain focused on strengthening our core business and leading in the future of personal mobility.”

G.M. shares were up about 5 percent in morning trading.

[How it looked in Flint: The G.M. strike from the picket lines.]

G.M.’s contract with the union provides for pay increases over the next four years, including substantial jumps for about a third of its hourly workers who currently earn considerably less than the top wage of $31. After four years, most hourly workers will earn the new top wage of $32.

Analysts estimate that the contract will increase G.M.’s labor costs by about $100 million a year.

The contract allows G.M. to close three United States factories, including a small-car plant in Lordstown, Ohio. The reduction in manufacturing capacity will leave G.M. in a more stable position if auto sales continue to slow or the United States economy slips into a recession.

Helped by strong sales of high-margin trucks and sport utility vehicles, G.M. has earned $35 million in North America over the last three years. Under the new labor agreement, the company has promised to invest $7.7 billion over the next four years in United States plants. An additional $1.3 billion will be invested by G.M. and joint-venture partners. The spending is supposed to create or preserve as many as 9,000 jobs.

In first three quarters of 2019, G.M. sold 2.15 million cars and light trucks in the United States, a decline of about 1 percent from the comparable period last year.

[G.M. on Monday sided with the Trump administration in its clash with California over pollution standards.]

Real Estate, and Personal Injury Lawyers. Contact us at: https://westlakelegal.com 

Google, in Rare Stumble, Posts 23% Decline in Profit

Westlake Legal Group 28google-facebookJumbo Google, in Rare Stumble, Posts 23% Decline in Profit Online Advertising Google Inc Computers and the Internet Company Reports Alphabet Inc Advertising and Marketing

SEATTLE — Alphabet, the parent company of Google, said on Monday that its quarterly profit fell 23 percent after it sharply increased spending, in a rare financial stumble by the tech giant.

Alphabet reported that its revenue rose 20 percent to $40.5 billion for the third quarter, but that profit dropped to $7.07 billion. Profit, which came in below Wall Street expectations, was hurt by rising costs for research and development and marketing, the company reported.

In after-hours trading, Alphabet’s stock declined 2 percent.

The performance demonstrated the challenges of trying to maintain growth at the company. While advertising, rooted in the dominance of Google’s internet search engine, has sustained Alphabet’s bottom line in recent years, that business isn’t growing as fast as it once did. Google is also facing new competition for marketing dollars from Amazon and others.

Alphabet faces other challenges. Google is squarely in the sights of regulators and politicians who want to take down a monopoly. Its employees have been unhappy with management, political conservatives accuse the company of bias and YouTube has been under attack for spreading misinformation.

This is a developing story and will be updated.

Real Estate, and Personal Injury Lawyers. Contact us at: https://westlakelegal.com 

C.E.O.s Are Anxious About the Economy. That’s Bad for Stocks.

Westlake Legal Group buybacks-1-facebookJumbo-v2 C.E.O.s Are Anxious About the Economy. That’s Bad for Stocks. United States Economy Stocks and Bonds Stock Buybacks Company Reports

American companies spent more than $800 billion on their own shares last year, taking a windfall from deep corporate tax cuts to try to bolster their share prices and improve the look of their quarterly earnings reports.

This year, as the economy’s worsening prospects rattle executives, those buybacks are slowing down. The mood among corporate bosses is likely to stay subdued in the face of the trade war, the broadening impeachment inquiry of President Trump and the 2020 presidential election.

“If you’re at a point where trade and politics are stymieing the ability to plan for the future, I think that that’s another huge factor in terms of how companies are going to spend cash or if they will spend as much cash as they have been,” said Savita Subramanian, head of United States equity strategy at Bank of America Merrill Lynch.

Confidence among chief executives fell to its lowest level in a decade in the third quarter, according to survey data collected by the Conference Board, a nonprofit research group. The last time the survey came close to showing these levels of gloom, businesses were still shedding about 800,000 jobs a month because of the recession.

Things are nowhere near as bad as they were in 2009. Unemployment is lower than it has been in about 50 years. But the economy’s growth has slowed from a 2.9 percent pace in 2018. The economy is expected to grow 2.3 percent this year and could slow to 1.7 percent next year, which would be the slowest rate since 2016, a period that many now view as something of a mini-recession.

In addition, the chief financial officers who control a company’s spending are also far less optimistic than they were two years ago, according to a quarterly survey by Duke University.

If companies hold back spending, including stepping in to buy up stocks when the market swoons, stock trading could be bumpier.

In the normal course of business, companies use their cash to build a new plant, raise wages or acquire a competitor. When they feel they have more cash than they need, they often hand it back to shareholders.

One way to do that is by paying a dividend. The other is to repurchase shares in the stock market, adding to demand and lifting their price. Either move at best serves only to reward shareholders, rather than bolstering the fundamentals of a business.

Buybacks can also make a company’s results look better, even if the fundamentals have not changed. And they have their critics, who say that buybacks are not a productive use of cash, that they put a priority on shareholders over other stakeholders like employees and customers, and that they amount to financial engineering aimed at making things look better than they are.

And a company’s willingness to spend money on this kind of reward tends to move in step with executive confidence. If executives are worried about the future, they might hang on to cash in case of a rainy day.

When corporate leaders were more bullish about the economy, and had more cash to throw around, they snapped up shares. Last year, 30 percent of the cash spent by S&P 500 companies was used to repurchase stock, outpacing even the amount they put into long-term capital expenditures, such as investments in plants, equipment and buildings, according to Goldman Sachs.

The pace of buybacks this year has declined from last year’s record of more than $800 billion. That’s partly because the surge was fueled by the large tax cut, which left companies with high levels of cash.

But waning confidence could mean the drop continues into next year. Goldman Sachs analysts expect buybacks will fall 15 percent in 2019, to a bit more than $700 billion, and then 5 percent in 2020 to $675 billion.

That could have repercussions for the stock market.

Over the last few years, companies have often stepped in to buy stock when the market was tumbling. For instance, trading data from Goldman Sachs shows that when stocks suffered a 10 percent drop that began in January 2018, they bottomed out after a burst of corporate buying. A sharp tumble in stocks last fall was also blunted by the surge in buybacks, which stabilized the market temporarily.

“The corporate buyer has been willing to step in, and I think that’s definitely supported share prices in a significant way,” said Lori Calvasina, head of United States equity strategy at RBC Capital Markets.

So back to what this all means to stock prices. A drop in share buybacks has important implications for one of the key metrics on which stocks are judged: earnings per share.

Share repurchases improve this gauge of profitability because when a company buys back shares, it shrinks the number of shares outstanding. In other words, a company’s profit is spread over the smaller number of shares. That can bolster a company’s earnings-per-share number even if a company’s profit stays the same, or even falls.

This is where the financial engineering claims come up. Analysts say this technical effect of share buybacks has been a top reason that earnings-per-share growth has kept climbing even when profits have dropped.

That was the case in 2016, when earnings per share rose 1.3 percent even as net income, or profit, at S&P 500 companies fell 1.8 percent.

Profit expectations this year are similarly modest, with Wall Street analysts expecting S&P 500 companies to see their earnings per share grow 1.4 percent.

“If you didn’t have buybacks coming in and supporting the earnings-per-share growth, you’d probably be looking at some slight declines,” Ms. Calvasina said. “It’s sort of kept you in slightly positive territory on earnings growth, and it’s also just supported share prices when they’ve been willing to step in and buy.”

Real Estate, and Personal Injury Lawyers. Contact us at: https://westlakelegal.com 

C.E.O. Confidence Is Collapsing. That Could Hurt Stocks.

Westlake Legal Group buybacks-1-facebookJumbo C.E.O. Confidence Is Collapsing. That Could Hurt Stocks. United States Economy Stocks and Bonds Stock Buybacks Company Reports

American companies spent more than $800 billion on their own shares last year, taking a windfall from deep corporate tax cuts to try to bolster their share prices and improve the look of their quarterly earnings reports.

This year, as the economy’s worsening prospects rattle executives, those buybacks are slowing down. The mood among corporate bosses is likely to stay subdued in the face of the trade war, the broadening impeachment inquiry of President Trump and the 2020 presidential election.

“If you’re at a point where trade and politics are stymieing the ability to plan for the future, I think that that’s another huge factor in terms of how companies are going to spend cash or if they will spend as much cash as they have been,” said Savita Subramanian, head of United States equity strategy at Bank of America Merrill Lynch.

Confidence among chief executives fell to its lowest level in a decade in the third quarter, according to survey data collected by the Conference Board, a nonprofit research group. The last time the survey came close to showing these levels of gloom, businesses were still shedding about 800,000 jobs a month because of the recession.

Things are nowhere near as bad as they were in 2009. Unemployment is lower than it has been in about 50 years. But the economy’s growth has slowed from a 2.9 percent pace in 2018. The economy is expected to grow 2.3 percent this year and could slow to 1.7 percent next year, which would be the slowest rate since 2016, a period that many now view as something of a mini-recession.

In addition, the chief financial officers who control a company’s spending are also far less optimistic than they were two years ago, according to a quarterly survey by Duke University.

If companies hold back spending, including stepping in to buy up stocks when the market swoons, stock trading could be bumpier.

In the normal course of business, companies use their cash to build a new plant, raise wages or acquire a competitor. When they feel they have more cash than they need, they often hand it back to shareholders.

One way to do that is by paying a dividend. The other is to repurchase shares in the stock market, adding to demand and lifting their price. Either move at best serves only to reward shareholders, rather than bolstering the fundamentals of a business.

Buybacks can also make a company’s results look better, even if the fundamentals have not changed. And they have their critics, who say that buybacks are not a productive use of cash, that they put a priority on shareholders over other stakeholders like employees and customers, and that they amount to financial engineering aimed at making things look better than they are.

And a company’s willingness to spend money on this kind of reward tends to move in step with executive confidence. If executives are worried about the future, they might hang on to cash in case of a rainy day.

When corporate leaders were more bullish about the economy, and had more cash to throw around, they snapped up shares. Last year, 30 percent of the cash spent by S&P 500 companies was used to repurchase stock, outpacing even the amount they put into long-term capital expenditures, such as investments in plants, equipment and buildings, according to Goldman Sachs.

The pace of buybacks this year has declined from last year’s record of more than $800 billion. That’s partly because the surge was fueled by the large tax cut, which left companies with high levels of cash.

But waning confidence could mean the drop continues into next year. Goldman Sachs analysts expect buybacks will fall 15 percent in 2019, to a bit more than $700 billion, and then 5 percent in 2020 to $675 billion.

That could have repercussions for the stock market.

Over the last few years, companies have often stepped in to buy stock when the market was tumbling. For instance, trading data from Goldman Sachs shows that when stocks suffered a 10 percent drop that began in January 2018, they bottomed out after a burst of corporate buying. A sharp tumble in stocks last fall was also blunted by the surge in buybacks, which stabilized the market temporarily.

“The corporate buyer has been willing to step in, and I think that’s definitely supported share prices in a significant way,” said Lori Calvasina, head of United States equity strategy at RBC Capital Markets.

So back to what this all means to stock prices. A drop in share buybacks has important implications for one of the key metrics on which stocks are judged: earnings per share.

Share repurchases improve this gauge of profitability because when a company buys back shares, it shrinks the number of shares outstanding. In other words, a company’s profit is spread over the smaller number of shares. That can bolster a company’s earnings-per-share number even if a company’s profit stays the same, or even falls.

This is where the financial engineering claims come up. Analysts say this technical effect of share buybacks has been a top reason that earnings-per-share growth has kept climbing even when profits have dropped.

That was the case in 2016, when earnings per share rose 1.3 percent even as net income, or profit, at S&P 500 companies fell 1.8 percent.

Profit expectations this year are similarly modest, with Wall Street analysts expecting S&P 500 companies to see their earnings per share grow 1.4 percent.

“If you didn’t have buybacks coming in and supporting the earnings-per-share growth, you’d probably be looking at some slight declines,” Ms. Calvasina said. “It’s sort of kept you in slightly positive territory on earnings growth, and it’s also just supported share prices when they’ve been willing to step in and buy.”

Real Estate, and Personal Injury Lawyers. Contact us at: https://westlakelegal.com 

Tesla Reports Profit for Quarter, Sending Shares Soaring

Westlake Legal Group 23tesla2-facebookJumbo Tesla Reports Profit for Quarter, Sending Shares Soaring Tesla Motors Inc Tax Credits, Deductions and Exemptions Musk, Elon Electric and Hybrid Vehicles Company Reports Automobiles

Tesla surprised Wall Street on Wednesday by reporting $143 million in net income in the third quarter as cost reductions more than offset a slight decline in revenue.

The electric-car maker said it had earnings of $1.86 per share on an adjusted basis. Revenue was $6.3 billion in the quarter.

Analysts had expected a loss of 46 cents per share and revenue of $6.4 billion, according to FactSet.

“Investors will love the results,” said Erik Gordon, a business professor at the University of Michigan who follows the auto industry.

The news sent Tesla’s shares up 17 percent after the close of regular trading.

Tesla said it removed “substantial cost” from its operations.

“Operating expenses are at the lowest level since Model 3 production started,” the company said in a statement. “This year our focus has been on cost control and preparing for our next phase of growth.”

Tesla said capital expenditures totaled $385 million in the quarter. That was more than the $250 million spent in the second quarter, but down from $510 million in the third quarter a year ago.

At the same time, it said its cash on hand grew to $5.3 billion, an increase of $383 million.

The company said that construction of its Shanghai factory was ahead of schedule and that trial production had started there. Its next vehicle, the Model Y, a roomier version of the Model 3, is now expected to be in production by next summer. Previously, Tesla had said that car would not arrive until late next year.

Tesla reported this month that it delivered 97,000 cars in the third quarter, up from 95,000 in the second quarter. But the sales gain reflected demand for its least expensive offering, the Model 3.

The most affordable version of the Model 3 sells for $39,500. The Model S luxury sedan and Model X sport utility vehicle sell for $80,000 and up, but their sales have fallen as Model 3 production has increased. In the third quarter, Model S and X sales totaled 17,400 vehicles, compared to Model 3 sales of 79,600.

Before the earnings report on Wednesday, Tesla’s stock closed at $255, down about 18 percent since the beginning of the year, although Tesla still has a market value of $46 billion, about $10 billion more than Ford Motor.

Tesla has forecast it will sell 360,000 to 400,000 cars this year, and to reach the bottom of that range it will need fourth-quarter sales of 105,000 vehicles.

Automakers typically see strong sales in the year’s final three months, and Tesla could benefit if consumers in the United States rush to take advantage of the $1,875 federal tax credit available to buyers of Tesla vehicles. The tax credit will cease at the end of the year.

Real Estate, and Personal Injury Lawyers. Contact us at: https://westlakelegal.com 

Boeing Sales and Profits Plummet as 737 Max Crisis Continues

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 percent from the same period last year to $20 billion. Earnings fell 43 percent to $1.26 billion.

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

The company did not provide an update on the total amount it expects the Max crisis to cost the company. It said that it still expects the Federal Aviation Administration to clear the Max to fly in the next three months.

Westlake Legal Group merlin_152397885_5588305c-8e58-47f0-9b4a-3ac83d14e790-articleLarge Boeing Sales and Profits Plummet as 737 Max Crisis Continues Company Reports Boeing Company Boeing 737 Max Groundings and Safety Concerns (2019) Airlines and Airplanes

Boeing 737 Max: What’s Happened After the 2 Deadly Crashes

Boeing remains under intense scrutiny nearly one year after the first Max jet was involved in a fatal accident.

“Our top priority remains the safe return to service of the 737 Max, and we’re making steady progress,” Boeing’s chief executive, Dennis A. Muilenburg, said in a statement. “We’ve also taken action to further sharpen our company’s focus on product and services safety, and we continue to deliver on customer commitments and capture new opportunities with our values of safety, quality and integrity always at the forefront.”

Boeing is mired in the biggest crisis of its 103-year 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, ousting the head of commercial airplanes, Kevin McAllister, and stripping Mr. Muilenburg of his title as chairman. And new revelations have made it clear that some Boeing employees voiced concern about an automated system that played a role in both crashes before the plane was certified.

Mr. Muilenburg is set to testify before Congress next week in what is expected to be a tense showdown between the company and lawmakers, who have grown increasingly irate with Boeing over its handling of the Max crisis.

On Wednesday, Indonesian National Transportation Safety Committee investigators who were looking into the crash of Lion Air Flight 610 last year told family members of victims that the disaster was caused by systemic design flaws in the Max jet that were compounded by flight crew lapses.

Next week will mark the one-year anniversary of the Lion Air crash, which killed all 189 people on board.

Real Estate, and Personal Injury Lawyers. Contact us at: https://westlakelegal.com 

‘Stranger Things’ Helps Netflix Increase Subscribers

Westlake Legal Group merlin_157532550_ac08aaf2-14c0-4b92-9a0a-333c2c0373fc-facebookJumbo ‘Stranger Things’ Helps Netflix Increase Subscribers Netflix Inc Company Reports

Netflix has stemmed the bleeding. The streaming juggernaut overcame its rare moment of weakness from last quarter to add 6.8 million new customers, with 520,000 in the United States in the three months that ended in September.

The rebound, after a loss of 126,000 customers domestically earlier in the year, helped Netflix recover some investor confidence as it faces an onslaught of new streaming competitors.

The third-quarter results were slightly lower than the company’s forecast. Netflix had been expected to add about seven million customers, with 800,000 in the United States. The stock jumped more than 8 percent in after-hours trading Wednesday. The company’s market value had dropped sharply since its last earnings announcement in July, with shares having traded down more than 20 percent.

The company also reported a profit of $665 million on $5.2 billion in revenue.

Netflix, led by the chief executive, Reed Hastings, forecast a healthy rate of growth for the rest of the year. The company said it expected to add 7.6 million total new customers in the next quarter, with about 600,000 for the United States. That was below the 9.4 million that Wall Street had expected and is an indication of the pending competition.

The third-quarter results benefited from Netflix’s best-known series, “Stranger Things,” which debuted its hugely anticipated third season over the Fourth of July weekend. The series drew 64 million viewers in the first four weeks it was available, according to the company.

Netflix, which started as a DVD-by-mail service, has become a dominant force in Hollywood, and its disruptive growth has reordered the television landscape. It often outspends its rivals and has forced the industry’s biggest players to embrace streaming as they abandon, albeit slowly, the pay-television model.

Netflix is the nation’s largest digital television network, with over 158 million customers around the world, including 60 million in the United States.

That audience has become critically important as well-financed competitors wait in the wings. On Nov. 1, Apple plans to unveil its streaming product, Apple TV Plus; 11 days later, the Walt Disney Company intends to start Disney Plus, which will feature Marvel’s biggest franchises, the complete “Star Wars” library and the Disney content vault.

In a cheeky marketing stunt, Disney owned Twitter for a few hours on Monday when it promoted its service on an epic Twitter thread with a seemingly endless string of titles (both famous and obscure) that will appear on Plus. Not to be outdone, Jennifer Aniston, who stars in Apple’s new signature series, “The Morning Show,” drew Instagram’s attention Tuesday when she finally joined the social platform.

Both streamers will come stocked with original films and series, and both will cost about half the price of Netflix. (By early next year, Netflix will face another competitor: AT&T’s HBO Max.)

The competition suggests that the more important consideration in its financial report is Netflix’s expectation for the current quarter, which is also traditionally its most lucrative period with the most new subscribers.

But Netflix plans a new line of attack at the end of the year. It will release more than half a dozen high-profile features over the coming months, including Michael Bay’s “6 Underground,” Eddie Murphy’s “Dolemite Is My Name” and perhaps its most ambitious screen effort to date, Martin Scorsese’s “The Irishman,” which cost $159 million.

Real Estate, and Personal Injury Lawyers. Contact us at: https://westlakelegal.com 

What to Expect From Netflix Earnings

Westlake Legal Group 16netflix1-facebookJumbo What to Expect From Netflix Earnings Netflix Inc Company Reports

Netflix, the streaming video giant, showed a rare moment of weakness last quarter when it reported that it lost domestic subscribers for the first time since starting its digital television service 12 years ago.

It was an unhealthy sign in the face of looming rivals, but the internet juggernaut has another chance today to build confidence when it announces its third-quarter results after the market closes. The subscriber marks will be closely eyed by Wall Street investors, who have traded down Netflix shares about 20 percent since its last earnings report.

Analysts expect Netflix to add seven million new customers for the third quarter, including about 800,000 in the United States. If that holds true, it would be a much-needed improvement over the previous period when the company lost 126,000 paid users domestically. Investors are looking for roughly $470 million of income on $5.2 billion in sales.

The quarter will likely have benefited from Netflix’s best-known series, “Stranger Things,” which debuted its hugely anticipated third season over the Fourth of July weekend.

Netflix, which started as a DVD-by-mail service, has become a dominant force in Hollywood, and its disruptive growth has reordered the television landscape. It often outspends its rivals and has forced the industry’s biggest players to embrace streaming as they abandon, albeit slowly, the pay-television model.

Netflix is the nation’s largest digital television network with over 151 million customers around the world, including 60 million in the United States.

That audience has become critically important as well-financed competitors wait in the wings. On Nov. 1, the tech behemoth Apple plans to unveil its streaming product, Apple TV Plus; 11 days later, The Walt Disney Company intends to launch Disney Plus, which will feature Marvel’s biggest franchises, the complete “Star Wars” library and the Disney content vault.

In a cheeky marketing stunt, Disney owned Twitter for a few hours on Monday when it promoted its service on an epic Twitter thread with a seemingly endless string of titles (both famous and obscure) that will appear on Plus. Not to be outdone, Jennifer Aniston, who stars in Apple’s new signature series “The Morning Show,” drew Instagram’s attention Tuesday when she finally joined the social platform.

Both streamers will come stocked with original films and series, and both will cost about half the price of Netflix. (By early next year, Netflix will face another competitor: AT&T’s HBO Max.)

That suggests that the more important consideration in its financial report is Netflix’s expectation for the current quarter, when it will come up against the biggest competitive threats it has ever faced as a streaming service.

The fourth quarter is also traditionally Netflix’s most lucrative period when it adds the most subscribers. Wall Street analysts estimate that the company will add about 9.4 million customers, with 1.4 million in the United States. But it’s possible Netflix will forecast slower growth because of the new entrants.

Real Estate, and Personal Injury Lawyers. Contact us at: https://westlakelegal.com