Boeing’s new 737 MAX-9 is pictured under construction at its production facility in Renton, Washington, United States, February 13, 2017.
Boeing said Wednesday it will deliver fewer 737 Max planes than expected this year as it fixes production defects found on some of the best-selling planes.
The company expects to deliver between 375 and 400 of its jetliners this year, up from a previous estimate of 400 to 450. That represents a headwind for Boeing and for airline customers eager to receive new, more fuel-efficient jetliners. fuel.
Boeing maintained its expectations for free cash flow of $3 billion to $5 billion for 2023, despite production issues.
“I’ve heard people outside of our company wonder if we’ve lost a step. To me, it’s quite the opposite,” CEO Dave Calhoun said in a memo to employees Wednesday, as the company released its third quarter results. “Most importantly, we have worked hard to instill a culture of speaking up and transparently presenting any issue, no matter how big, so we can get it right for the future.”
He said the company can now resolve these issues “once and for all.”
The manufacturer also announced on Wednesday a larger-than-expected adjusted loss for its third quarter.
Here’s how the company performed in the period ended September 30, compared to estimates from LSEG, formerly known as Refinitiv:
- Adjusted loss per share: $3.26 vs. $2.96
- Income: $18.10 billion versus $18.01 billion
Boeing reported a net loss of nearly $1.64 billion, or $2.70 per share, in the third quarter. This is an improvement compared to the same period the previous year, when the group lost $3.31 billion, or $5.49 per share.
Revenue rose 13% from the same three-month period last year to $18.10 billion, slightly above analyst estimates.
Boeing will hold a call with analysts at 10:30 a.m. ET in which executives will face questions about its production pace, demand and how it hopes to improve margins at its defense unit.
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