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Boeing burns less cash burn than feared, remains 'in a tough moment'

Published 2024-04-24, 10:57 a/m
© Reuters.  Boeing burns less cash burn than feared, remains 'in a tough moment'

Proactive Investors - Boeing Co (NYSE:BA, ETR:BCO) shares rose 1.5% higher on Wednesday after the aerospace group posted smaller first-quarter losses and cash burn than analysts had forecast.

Some US$3.9 billion in cash was burnt during the three months, beating the Wall Street consensus of US$4.5 billion.

Losses for the quarter came in at US$355 million, which when adjusted came in at US$1.13 per share, higher than analysts’ forecasts of US$1.76.

Sales also improved on Wall Street guidance of US$16.23 billion after it reached US$16.57 billion – an 8% year-on-year drop.

Nevertheless, the sheer scale of the cash outflows and losses highlights the growing impact of the aircraft makers’ safety woes, with intense regulatory scrutiny leading to reduced deliveries and an increased focus on production.

“Near term, yes, we are in a tough moment,” departing chief executive Dave Calhoun said.

“Lower deliveries can be difficult for our customers and for our financials. But safety and quality must and will come above all else.”

Much of the concerns surrounding the group’s safety and quality stem from the near-catastrophic door blowout of its 737 Max model, which occurred on Alaska Airlines back in January.

Since then, a whole horde of incidents have occurred surrounding Boeing ranging from engine covers falling off to whistle-blowers claiming safety concerns were being ignored.

Over the weekend, reports revealed a 737 was forced to make an emergency landing in South Africa after one of its wheels came off soon after lifting off.

Read more on Proactive Investors CA


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