Boeing’s new 737 MAX-9 is pictured under construction at their production facility in Renton, Washington, U.S., Feb. 13, 2017.
Jason Redmond/Reuters
Boeing said Wednesday it will deliver fewer 737 Max aircraft than it expected this year as it works through production flaws detected on some of the best-selling aircraft.
The company expects to hand over between 375 and 400 of its workhorse plane this year, down from a previous estimate of 400 to 450. It marks a headwind for Boeing and for airline customers eager to receive new, more fuel-efficient jetliners.
Boeing maintained its expectations for 2023 free cash flow of $3 billion to $5 billion, despite the production problems.
“I have heard those outside our company wondering if we’ve lost a step. I view it as quite the opposite,” CEO Dave Calhoun said in an employee note on Wednesday, as the company reported third-quarter results. “Most importantly, we’ve worked hard to instill a culture of speaking up and transparently bringing forward any issue, no matter the size, so we can get things right for the future.”
He said the company now can fix those issues “once and for all.”
The manufacturer on Wednesday also reported a wider-than-expected adjusted loss for its third quarter.
Here’s how the company performed during the period ended Sept. 30, compared with estimates from LSEG, formerly known as Refinitiv:
Adjusted loss per share: $3.26 vs. $2.96Revenue: $18.10 billion vs. $18.01 billion
Boeing posted a net loss of nearly $1.64 billion, or $2.70 a share, for the third quarter. That’s an improvement from the same period a year earlier when it lost $3.31 billion, or $5.49 a share.
Revenue rose 13% from the same three-month period a year ago to $18.10 billion, slightly ahead of analysts’ estimates.
Boeing will hold a call with analysts at 10:30 a.m. ET when executives will face questions about its production pace, demand and how it expects to improve margins in its defense unit.
This is breaking news. Check back for updates.