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April 27, 2023: On Wednesday, Boeing said it would increase the output of 737 Max planes to 38 a month this year, up from 31 a month, despite a production issue which affects some aircraft. It is also planning to raise the output of the 787 Dreamliner to five planes a month year from a current price of three.
“This is every year for us,” CEO Dave Calhoun stated in a staff memo. “As demand surges all over our markets, we must focus together on execution and meeting our customer commitments.”
Revenue increased 28% yearly, and the firm narrowed its net loss to $425 million, or 69 cents for every share, from a year-ago net loss of $1.24 billion, or $2.06 for every share.
In adjusting for particular items, Boeing is losing $440 million, or $1.27 per share, compared with a year-ago net loss of $1.44 billion, or $2.75 per share.
The company stated a $245 million pre-tax charge on the company’s KC-46A Tanker program tied to supplier issues.
After reporting results, Boeing shares were up more than 3% in premarket trading.
Earlier this month, the firm disclosed a problem with two of eight fittings in a section of the fuselage on certain 737 Max planes, its best-seller. Boeing had cautioned that the issue would slow deliveries of some aircraft.
The speed of deliveries is crucial to its cash flow goals since customers pay for the bulk of the planes upon delivery. On Wednesday, Boeing reiterated that it expects to achieve free cash flow between $3 billion and $5 billion for the year.
We provide the insights on leaders who are responsible for taking their organization to new heights, all the while bringing together a group of talented individuals.
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