Major US aircraft manufacturer Boeing CEO Dave Calhoun said the company is making progress in rebuilding its manufacturing operations and expects to meet its cash flow goals.
CEO Calhoun said in an interview with CNBC on the 24th after the January-March (first quarter) results were announced that it was initially difficult to achieve annual free cash flow of $10 billion (approximately 1.55 trillion yen). Although he said it would take six months longer than expected, he said, “We still think it will happen within the two-year time frame set by Boeing, 2025 or 2026.”
“It was never an audacious goal,” he added, “but it was a goal we set because we thought it was achievable.”
Boeing has been receiving fewer defective fuselages from supplier Spirit AeroSystems since it tightened quality controls in early March, the CEO said.
According to the announcement on the 24th, adjusted earnings per share for the January-March period was a deficit of $1.13. Sales were $16.57 billion. Production of the 737 is still well below the cap of 38 planes per month mandated by regulators. Cash and short-term securities at the end of March were $7.5 billion, down from $16 billion at the beginning of the year.
Cash burn for the January-March period was $3.93 billion. That was lower than analysts’ expectations ($4.4 billion) compiled by Bloomberg. Sales and profit/loss per share also exceeded expectations. The defense division, which had been in the red for the past few quarters, turned to operating profit and loss, boosting business results.
Boeing’s 737 Production Slowdown Saps Cash
First quarter free-cash burn was worst since the pandemic
Source: Boeing; Bloomberg data
Related article:
Original title: Boeing CEO Upbeat on Cash Goal, Says Quality Review Progressing (excerpt)
(Add and update CEO’s statement)
Tags: Boeing track meet cash flow targets strengthens quality control Bloomberg
