Boeing narrows losses; cuts 737 Max delivery forecast
Boeing Co.
$138.14
11:10 14/11/24
Boeing reported a narrowing of its third-quarter losses on Wednesday, as it cut its 737 Max aircraft delivery forecast due to production flaws.
Dow Jones I.A.
43,750.86
04:30 15/10/20
The company posted a Q3 net loss of $1.64bn, which was an improvement on the $3.31bn reported in the same period a year earlier. Meanwhile, revenues jumped 13% to $18.1bn.
Boeing said it now expects to deliver between 375 and 400 of its 737 Max aicraft, down from previous guidance of 400 to 450, due to production flaws.
The company explained that during the quarter, "a supplier non-conformance was identified on the aft pressure bulkhead section of certain 737 airplanes". Boeing said this was not an immediate safety of flight issue and the in-service fleet can continue operating safely.
However, near-term deliveries and production will be impacted as the program performs necessary inspections and rework.
President and chief executive Dave Calhoun said: "We continue to progress in our recovery and despite near-term challenges, we remain on track to meet the financial goals we set for this year and for the long term.
"We are focused on driving stability in our supply chain and improving operational performance as we steadily increase production rates to meet strong demand."
Boeing reaffirmed full-year guidance for between $4.5bn and $6.5bn of operating cash flow and $3bn to $5bn of free cash flow.