“Boeing Commences Delivery of Revamped 737 Aircraft, Acknowledges Financial Targets Pressure”

Boeing Resumes Deliveries of Reworked 737 Jets, but Free Cashflow Forecast Pressured, says CFO

Boeing Co has resumed delivering reworked 737 jets to customers after improperly installed brackets caused a brief halt in manufacturing. The resumption is expected to help Boeing achieve its goal of delivering 400-450 jets this year, a target closely monitored by investors as the planemaker seeks to recover from the crises caused by two fatal crashes and the COVID-19 pandemic.

Deliveries Resumed

“We still expect the first half of the year to be about 30 per month, and the back half of about 40 per month,” said Boeing’s CFO, Brian West, at a conference organized by Wolfe Research. Earlier this year, the planemaker was forced to halt deliveries of some 737s due to the faulty brackets, which connect the vertical tail with the Spirit AeroSystems fuselage.

Boeing Plans to Hit Target of 38 per Month

Despite the halt in some deliveries, West reiterated that Boeing expects to hit its production ramp-up target: 38 per month, up from 31 currently. However, the CFO said that the top end of Boeing’s $3 billion to $5 billion free cash flow forecast was “a bit pressured” due to supply-chain problems at its ailing defense business.

Boeing Shares Up

Boeing’s shares were up around 1% after briefly turning negative on Thursday. The company still aims to deliver hundreds of 737 jets this year as it seeks to recover from the crises that have plagued its operations.