April 28, 2022: Boeing reported a comprehensive adjusted loss and lower revenue than analysts expected as the company faced higher commercial and defense aircraft costs.
The manufacturer said it will hold the production of its 777X plane, which has not been certified by U.S. regulators yet, through 2023. Boeing also doesn’t expect aircraft deliveries to start until 2025, over a year later than forecast
ed the last time.
On Wednesday, after reporting results, Boeing shares decreased over 2% in premarket trading.
Boeing has increased demand for its 737 Max plane, returning to service in 2020 after two fatal crashes. But problems in production and certifications have hampered different aircraft programs.
“Through our first-quarter results, you’ll see we still have more work to do, but I remain encouraged with our trajectory. We are on track for a positive cash flow for 2022,” Boeing’s CEO David Calhoun said to employees on Wednesday. “We are a long-cycle business, and the success of our efforts will be measured for years and decades, not quarters,” he added.
The company said it is ramping up 737 Max output to 31 a month in the second quarter. It is delivering 95 planes in the first quarter, up 77 in the previous year.
Boeing reported negative cash flow for the quarter but still expects positive cash flow this year.
This year, Boeing shares are down 1% through Tuesday’s close, outpacing the S&P 500′s 12.4% drop.