From CNBC: 2024-04-24 15:00:54

Boeing reported a better-than-expected quarter but continued to burn cash, with $3.9 billion in the first quarter. CEO Dave Calhoun acknowledged the tough moment and emphasized safety and quality. Boeing’s production has been hamstrung, especially with the 737 Max, and deliveries have slowed. Moody’s downgraded Boeing due to cash shortfall.

Boeing lost $355 million in the first quarter, with commercial airplane unit revenue dropping 31% to $4.65 billion. The company expects slower production increases and deliveries of its 787 Dreamliners. CFO Brian West predicts a “sizable use of cash” in the second quarter and Moody’s downgraded Boeing. Calhoun stands by the $10 billion free cash flow goal.

Boeing has been working to reduce “traveled work” and ensure manufacturing steps occur in the correct order. Talks to buy back fuselage maker Spirit AeroSystems, which also supplies Airbus, have been ongoing. Calhoun is optimistic a deal will be reached in the second quarter.$qBoeing reported a $1.13 adjusted loss per share, better than the estimated loss of $1.76. Revenue fell 8% to $16.57 billion, slightly above analyst estimates. Calhoun reiterated Boeing’s commitment to safety and quality while navigating production challenges and financial difficulties. The company anticipates delays in reaching its $10 billion annual free cash flow goal.



Read more at CNBC: Boeing (BA) earnings Q1 2024