The Globe and Mail reports in its Friday edition that Boeing will burn cash in 2024 and deliveries will not increase in the second quarter, the company's chief financial officer said Thursday. A Reuters dispatch to The Globe says that the U.S. plane maker is grappling with a full-blown crisis that is pinching production of its strongest-selling aircraft.
CFO Brian West told a transport conference that he expects Boeing's full-year free cash flow to be negative, compared with March's outlook for positive cash generation in the low single-digit billions.
His remarks surprised some investors, sending shares down to $172.21 (U.S.) at close and deepening the company's problems as production challenges and delayed deliveries to China reversed a rosier 2024 outlook upheld by Boeing just weeks earlier.
Boeing's jet production has slowed dramatically in the face of increased scrutiny from regulators, airlines and lawmakers following a January incident when a door plug blew off an Alaska Airlines jetliner while in mid-air.
Mr. West confirmed a Wednesday Reuters report that said plane deliveries to China were delayed in recent weeks owing to a Chinese regulatory review of batteries powering the cockpit voice recorder.
© 2024 Canjex Publishing Ltd. All rights reserved.