Boeing Co.'s 737 Max deliveries for the year will be at the "low end" of guidance, according to a top executive at the aerospace and defense company. This announcement has caused the company's stock to fluctuate between gains and losses in midday trading.
Delivery Problems
Chief Financial Officer Brian West revealed that previously disclosed problems with some of Boeing's 737 Max jets will affect approximately 165 planes in inventory as of the end of the second quarter. This disclosure was made during a conference with industrial-sector companies hosted by Jefferies.
Impact on Deliveries
In the near term, these problems will have an impact on deliveries. However, Boeing has no intention of changing its master schedule. Despite this setback, Boeing's demand remains strong, and the delivery schedule for the Max planes will remain unchanged. The company expects to deliver 400 to 450 of the 737 Max jets this year, but it anticipates that the number will be at the "low end" of guidance.
Overcoming Challenges
To tackle these challenges, Boeing has deployed a significant workforce to resolve the issues and ensure stability in their factory. While the delays are frustrating for customers, investors, and employees, Boeing is committed to transparency and believes that it will emerge stronger from this experience.
Maintaining Financial Guidance
In addition to discussing delivery issues, West reaffirmed Boeing's free cash flow guidance for the year, which is expected to be between $3 billion and $5 billion.
Stock Performance
Boeing shares have gained 14% year-to-date, slightly trailing behind the advance of about 17% for the S&P 500 SPX.
Don't miss out on Boeing's latest positive developments in the market.
Related Articles
![Energy Companies Adapting to New Demands](https://www.signalsforex.net/img/0888b08e-b978-43c0-bdb4-4db1785eb1d5/news-article-3.jpeg?fm=jpg&q=80&fit=max&crop=1440%2C1080%2C240%2C0)
Energy Companies Adapting to New Demands
Energy companies are reorganizing to meet the demands of the evolving electricity grid. Uplight acquires AutoGrid, revolutionizing energy efficiency and connect...
![Busy Week Ahead for Second-Quarter Earnings](https://www.signalsforex.net/img/0888b08e-b978-43c0-bdb4-4db1785eb1d5/news-article-3.jpeg?fm=jpg&q=80&fit=max&crop=1440%2C1080%2C240%2C0)
Busy Week Ahead for Second-Quarter Earnings
This week will be the busiest week of the second-quarter earnings season, with a third of S&P 500 companies reporting. Alongside earnings reports, economic data...
![IFF Sales Setback](https://www.signalsforex.net/img/0888b08e-b978-43c0-bdb4-4db1785eb1d5/news-article-3.jpeg?fm=jpg&q=80&fit=max&crop=1440%2C1080%2C240%2C0)
IFF Sales Setback
International Flavors & Fragrances faces a setback as stock plunges, sales forecast falls short of expectations, dividend gets cut to enhance financial flexibil...