Boeing plans to boost 737 Max production to 38 planes per month despite manufacturing snag

Earnings

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A Boeing 737 Max is displayed during the Farnborough Airshow, in Farnborough, on July 18, 2022. (Photo by JUSTIN TALLIS / AFP) (Photo by JUSTIN TALLIS/AFP via Getty Images)
Justin Tallis | AFP | Getty Images

Boeing said Wednesday it will increase output of 737 Max planes to 38 a month later this year, up from 31 a month, despite a production issue affecting some aircraft. It is also planning to raise output of the 787 Dreamliner to five planes a month late this year from a current rate of three.

“This is an important year for us,” CEO Dave Calhoun said in a staff memo on Wednesday. “As demand surges across our markets, we must focus together on execution and meeting our customer commitments.”

Here’s how Boeing performed during the period ended March 31, compared with Refinitiv consensus estimates

  • Adjusted loss per share: $1.27 vs. $1.07
  • Revenue: $17.92 billion vs. $17.57 billion

Revenue jumped 28% year over year, and the company narrowed its net loss to $425 million, or 69 cents per share, from a year-ago net loss of $1.24 billion, or $2.06 per share.

Adjusting for special items, Boeing lost $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 reported a $245 million pre-tax charge on the company’s KC-46A Tanker program tied to supplier issues.

Boeing shares were up more than 3% in premarket trading after reporting results.

Earlier this month, the company disclosed a problem with two of eight fittings in a section of fuselage on certain 737 Max planes, its best-seller. Boeing had warned that the issue would slow deliveries of some aircraft.

The pace of deliveries is key to its cash flow goals since customers pay for the bulk of the planes upon delivery. Boeing on Wednesday reiterated it expects to achieve free cash flow for the year of between $3 billion and $5 billion.

This is breaking news. Check back for updates.

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