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Boeing warned it will burn more cash in the first quarter than previously expected as the US planemaker grapples with the aftermath of a door panel blowing out during the flight of one of its planes.
Brian West, chief financial officer, said cash outflow will reach $4 billion to $4.5 billion in the first quarter, higher than forecast in January. A plan to reach a cash flow target of $10 billion by 2025-2026 would also take longer, West said, at a Bank of America conference in London.
Boeing has had to limit production of its 737 Max planes in the wake of the crisis as it tries to improve the quality of its production and face increased regulatory scrutiny.
“We are currently unable to manage these short-term financial results due to ongoing stability work,” West said. “Our expectation is that we will become more predictable and better positioned, but it will take time.”
This is a developing story.