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Updated: October 23, 2019

Boeing is profitable again, but the 737 Max is still a crisis

By Chris Isidore | CNN Business

Boeing is profitable again. But the 737 Max crisis is still a major problem for the company's financial results.

The aircraft maker earned $895 million in the third quarter, bouncing back from a $3.7 billion loss in the previous quarter. That loss was because of a $5 billion charge related to the grounding of the 737 Max in March. Boeing's most important plane was grounded after two fatal crashes that killed 346 people.

But earnings in the third quarter fell by more than half from the $1.9 billion it earned a year earlier. And revenue tumbled 21% because of the lack of 737 Max deliveries. The 737 Max is Boeing's bestselling plane.

Boeing's profits came primarily from its defense and space business. The commercial airplanes unit posted another loss.

Boeing burned through $2.4 billion in cash in the quarter. But it still has enough to ride out the current crisis, as cash on hand rose by about $1.3 billion to $10.9 billion, thanks to the company's decision to increase debt by more than $5 billion during the period.

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