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Boeing Posts A $355 Million Loss As The Plane Maker Tries To Dig Out From Under Its Latest Crisis

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On Wednesday, Boeing reported a loss of $355 million in the first quarter due to a decline in revenue. This further highlights the critical situation the aircraft maker is currently facing as it deals with mounting concerns about the safety of its planes and allegations of poor workmanship from an increasing number of whistleblowers.

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Boeing Posts A $355 Million Loss As The Plane Maker Tries To Dig Out From Under Its Latest Crisis

CEO David Calhoun acknowledged that the company is currently facing a challenging period and is primarily dedicated to resolving its manufacturing problems rather than focusing on financial outcomes.

Following an incident in which a door plug blew out of a Boeing 737 Max during an Alaska Airlines flight in January, resulting in significant damage to the jet, company management has been compelled to prioritize safety discussions over financial matters.

The tragedy impeded the progress that Boeing appeared to be making in its recovery from two fatal disasters involving Max jets in 2018 and 2019.

The recent aviation accidents in Indonesia and Ethiopia have attracted significant attention. Later on Wednesday, the relatives of some of the 346 individuals who lost their lives in the accidents were slated to have a meeting with officials from the U.S. Justice Department. Relatives have made fruitless attempts to reverse a deal reached in 2021 between the department and Boeing, which allowed the firm to evade criminal charges.

“Despite the fact that we are announcing our financial results for the first quarter today, our main priority is still on the extensive measures we are implementing in response to the Alaska Airlines Flight 1282 accident,” Calhoun informed employees in a memo on Wednesday.

The individual enumerated a sequence of measures that the corporation is implementing and said that there has been “substantial advancement” in enhancing manufacturing quality, mostly achieved by reducing the pace of production, resulting in a reduced number of aircraft for its airline clients. According to Calhoun’s statement to CNBC, doing more thorough inspections has led to a significant reduction of 80% in the defects found in the fuselages produced by the main supplier, Spirit AeroSystems.

“In the immediate future, we are indeed facing a challenging period,” he wrote to the employees. Reduced deliveries pose challenges for both our customers and our financial performance. However, prioritizing safety and quality is essential and will always precede everything else.

Calhoun, who will resign after the year, reiterated his complete confidence in the company’s ability to rebound.

According to a FactSet survey, Boeing reported a first-quarter loss of $1.13 per share, excluding exceptional items. This was an improvement compared to analysts’ forecasted loss of $1.63 per share.

The revenue declined by 7.5%, amounting to $16.57 billion.

The company’s stock had a 3% increase shortly after the commencement of morning trade.

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Boeing Posts A $355 Million Loss As The Plane Maker Tries To Dig Out From Under Its Latest Crisis

The value of Boeing stock has decreased by around 33% following the incident involving the door-plug blowout on an Alaska Airlines aircraft. The Federal Aviation Administration has intensified its supervision and granted Boeing an extended deadline until late May to formulate a strategy to rectify issues in producing 737 Max aircraft. The airline’s customers are dissatisfied with the failure to receive all the newly ordered aircraft due to disruptions in delivery.

Investigators examining the Alaska aircraft have determined that the bolts responsible for securing the door stopper were absent following maintenance performed at a Boeing facility. The FBI informed passengers that they could potentially be victims of criminal activity.

Multiple ex-managers and one present manager have documented various issues in producing Boeing 737 and 787 aircraft. Last week, during a Congressional hearing, a quality engineer stated that Boeing is engaging in manufacturing practices that may lead to structural failures in the 787 Dreamliners. Boeing vehemently contested his assertions.

Nevertheless, Boeing possesses a few advantages.

Boeing and Airbus constitute a duopoly that holds a dominant position in the production of large commercial aircraft. Both corporations possess significant backlogs of orders from airlines eagerly seeking new, more fuel-efficient aircraft. Boeing is a prominent defense contractor for the Pentagon and several nations globally.

Richard Aboulafia, an experienced industry analyst and consultant at AeroDynamic Advisory, stated that despite the numerous obstacles, Boeing has a formidable combination of sought-after products, advanced technology, and skilled personnel.

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Boeing Posts A $355 Million Loss As The Plane Maker Tries To Dig Out From Under Its Latest Crisis

“Despite being ranked second and facing significant challenges, they still operate in a robust market and an industry with formidable barriers to entry,” he stated.

Despite incurring substantial losses of over $24 billion over the past five years, the corporation is safe from collapsing, according to Aboulafia.

“This situation is not comparable to General Motors in 2008 or Lockheed in 1971,” Aboulafia remarked, alluding to two renowned companies that required substantial government bailouts or loan guarantees to stay afloat.

The considerations above contribute to the rationale behind the positive assessments of Boeing shares by 20 analysts in a FactSet survey, who have rated them as “Buy” or “Overweight”. In contrast, only two analysts have assigned “Sell” ratings. (Five of them have “Hold” ratings.)

SOURCE – (AP)

Kiara Grace is a staff writer at VORNews, a reputable online publication. Her writing focuses on technology trends, particularly in the realm of consumer electronics and software. With a keen eye for detail and a knack for breaking down complex topics, Kiara delivers insightful analyses that resonate with tech enthusiasts and casual readers alike. Her articles strike a balance between in-depth coverage and accessibility, making them a go-to resource for anyone seeking to stay informed about the latest innovations shaping our digital world.

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Sony Says Focus Is On Creativity, With Games, Movies, Music, Sensors, IP, And Not Gadgets

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Sony | Pixa Bay Image

TOKYO — Sony, a Japanese electronics and entertainment company, says it will focus on innovation in movies, animation, and video games rather than traditional gadgetry.

Its CEO, Kenichiro Yoshida, described the company’s plan Thursday, saying Sony was assisting creative workers in delivering what he called “kando,” a moving experience.

Yoshida would not comment on claims that Tokyo-based Sony and Apollo Global Management are interested in acquiring Paramount Global.

Sony

Sony | Pixa Bay Image

Sony Says Focus Is On Creativity, With Games, Movies, Music, Sensors, IP, And Not Gadgets

Yoshida stated that the business now focuses on the creative process rather than valuing prior items such as the Walkman portable music player and Trinitron color televisions. He stated that “synergies” are no longer defined by entertainment and electronics but by intellectual property encompassing animation, music, gaming, and films.

In an online briefing, he stated, “We will continue to support people’s creativity through our technology.”

Sony is adapting to harsher circumstances, as competitors produce cheaper but competitive gadgets. According to critics, pursuing careers in film, music, and other forms of entertainment can be financially difficult.

Beginning with the acquisition of EMI Music Publishing in 2018, Sony has invested over 1.5 trillion yen ($10 billion) in the last six years to boost its content creation.

Sony

Sony | Pixa Bay Image

Sony Says Focus Is On Creativity, With Games, Movies, Music, Sensors, IP, And Not Gadgets

In 2021, it bought Crunchyroll, which has over 13 million paid customers and distributes Japanese cartoons worldwide. Another was Yoasobi, a Japanese music duet that uses Vocaloid technology, or singing voice synthesizer software, and has gained a global following.

Sony’s real-time computer technology, which records “this moment,” as Yoshida called it, is employed in sports cameras because it can catch fast-moving subjects without distortion

According to Yoshida, it is also utilized for news coverage and editing, 3D video and computer graphics, including successful movies like “Godzilla Minus One” and games based on human athlete movements

Sony

Sony | AP News Image

Sony Says Focus Is On Creativity, With Games, Movies, Music, Sensors, IP, And Not Gadgets

Sony recently recorded a quarterly profit of 189 billion yen ($1.2 billion), up from 141 billion yen the year before. The PlayStation gaming machine manufacturer’s quarterly revenue increased 14% to 3.48 trillion yen ($22 billion).

However, for the fiscal year ending March 31, Sony’s profit fell 3% to 970 billion yen ($6.2 billion) due to poor performance in its financial services sector, which will be largely split off next year.

SOURCE – (AP)

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Harvard Holding Commencement After Weekslong Pro-Palestinian Encampment Protest

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Harvard | Harvard.com Image

CAMBRIDGE, Massachusetts – Harvard University planned to host its commencement ceremony on Thursday, following a weeks-long pro-Palestinian encampment that closed off Harvard Yard to save individuals with university links and heightened campus tensions.

Those tensions were heightened on Wednesday when school authorities revealed that 13 Harvard students who participated in the encampment would not be permitted to graduate alongside their classmates.

Those in the encampment demanded a cease-fire in Gaza and Harvard’s divestment from firms that support the war.

Also on Thursday, Northwestern and Rutgers University presidents are scheduled to speak before the House Committee on Education and the Workforce on concessions they made to pro-Palestinian protesters to cease campus rallies. The Chancellor of the University of California, Los Angeles, was also due to attend the most recent hearings looking into how universities have responded to the protests and charges of antisemitism.

Harvard

Harvard | AP News Image

Harvard Holding Commencement After Weekslong Pro-Palestinian Encampment Protest

The decision by the school’s top governing board comes after faculty members recommended on Monday that the 13 students be allowed to graduate despite their participation in the encampment.

However, Harvard’s governing board, the Harvard Corporation, stated that each 13 had been determined to have violated university standards during the camping protest.

“In coming to this determination, we note that the express provisions of the Harvard College Student Handbook state that students who are not in good standing are not eligible for degrees,” the company stated in a written statement.

The statement did not rule out the possibility of an appeals procedure, stating that the corporation knows “that the inability to graduate is consequential for students and their families” and supports the Faculty of Arts and Sciences’ goal to accelerate the examination of appeal requests.

Harvard

Harvard | The Forward Image

Harvard Holding Commencement After Weekslong Pro-Palestinian Encampment Protest

“We care deeply about every member of our community — students, faculty, staff, researchers, and alumni — and we have chosen a path forward that accords with our responsibilities and reaffirms a process for our students to receive prompt and fair review,” said the statement.

Protesters packed up their things and departed a pro-Palestinian campsite at Drexel University in Philadelphia on Thursday after the school announced a decision to have police clear the area

Supporters of the students said that the decision not to allow them to earn degrees at commencement violated a May 14 agreement between interim President Alan Garber and the Harvard Out of Occupied Palestine alliance, which would have allowed them to graduate.

Protesters opposing Israel’s war with Hamas willingly demolished their tents after university administrators agreed to hear their concerns over the endowment, bringing a peaceful end to the types of demonstrations that were broken up by police on other campuses.

The group issued a statement late Wednesday, claiming that the decision jeopardizes the 13 students’ post-graduate careers.

“By rejecting a democratic faculty vote, the Corporation has proved itself to be a wholly illegitimate body, and Garber an illegitimate president, accountable to no one at the university,” claimed the organization.

Harvard

Harvard | Harvard Crimson Image

Harvard Holding Commencement After Weekslong Pro-Palestinian Encampment Protest

“Today’s actions have plunged the university even further into a crisis of legitimacy and governance, which will have major repercussions for Harvard in the coming months and years,” claimed the organization.

Supporters of the protestors planned a vigil outside Harvard Yard on Thursday to support the 13 and urge for a cease-fire in Gaza.

Protesters packed up their things and departed a pro-Palestinian campsite at Drexel University in Philadelphia on Thursday after the school announced a decision to have police clear the area. A wave of pro-Palestinian tent encampments on college campuses has resulted in over 3,000 arrests nationally.

SOURCE – (AP)

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Using AI, Mastercard Expects To Find Compromised Cards Quicker, Before They Get Used By Criminals

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Mastercard | AP news Image

NEW YORK  — Mastercard said Wednesday that it hopes to detect that your credit or debit card number has been compromised long before it falls into the hands of a cybercriminal.

Mastercard’s most recent software upgrade incorporates artificial intelligence into its fraud-prediction system, which it hopes will allow banks to replace stolen cards before criminals use them.

“Generative AI is going to allow us to figure out where you possibly got your credentials compromised, how we can identify how it happened, and how we can very quickly remedy that situation not only for you, but also for other customers who don’t know they are compromised yet,” said Johan Gerber, executive vice president of security and cyber innovation at Mastercard, in an interview.

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Mastercard | Investopedia Image

Using AI, Mastercard Expects To Find Compromised Cards Quicker, Before They Get Used By Criminals

Mastercard, based in Purchase, New York, says that with this new update, it can use other patterns or contextual information, such as geography, time, and addresses, and combine it with incomplete but compromised credit card numbers that appear in databases, allowing it to reach cardholders sooner and replace the bad card.

The patterns can now be applied in reverse, potentially employing batches of faulty cards to identify potentially hacked businesses or payment processors. According to Gerber, pattern identification goes beyond what humans can perform with database queries or other typical approaches.

Billions of stolen credit and debit card numbers are floating on the dark web, ready for purchase by any thief. Most were stolen from merchants in data breaches over the years, but a substantial number were stolen from unwary customers who used their credit or debit cards at the incorrect gas station, ATM, or online shop.

These compromised cards may go undiscovered for weeks, months, or even years. Only when the payment networks themselves dig into the dark web to look for stolen numbers, a merchant discovers a breach, or a criminal uses a card do the payment networks, and banks realize a batch of cards may be compromised.

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Mastercard | Youtube Image

Using AI, Mastercard Expects To Find Compromised Cards Quicker, Before They Get Used By Criminals

“We can now actually proactively reach out to the banks to make sure that we service that consumer and get them a new card in her or his hands so they can go about their lives with as little disruption as possible,” Gerber stated.

The payment networks are primarily attempting to transition away from “static” credit card or debit card numbers — card numbers and expiration dates that are used consistently across all businesses — and toward unique numbers for specific transactions. However, that transformation could take years, especially in the United States, where payment technology uptake is typically slow.

While chip cards are currently used in more than 90% of all in-person transactions worldwide, EMVCo, the technological body behind the chip in credit and debit cards, estimates that the proportion in the United States is closer to 70%.

Mastercard

Mastercard | Mastercard Image

Using AI, Mastercard Expects To Find Compromised Cards Quicker, Before They Get Used By Criminals

Mastercard’s announcement comes as its main competitor, Visa Inc., looks for ways to force users to discard their 16-digit credit and debit card numbers. Visa revealed big changes to how credit and debit cards will work in the United States last week, implying that Americans will carry fewer physical cards in their wallets and that the 16-digit credit or debit card number inscribed on each card will become less relevant.

SOURCE – (AP)

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