Boeing has announced a significant reduction in the production of its 737 Max jetliner, limiting it to below 38 units per month. This decision comes in the wake of regulatory scrutiny and a mid-air accident involving the aircraft in January. The company's Chief Financial Officer (CFO) emphasized that Boeing will not rush the production process and expects to feel the impact of this production constraint over the next several months. As a result, Boeing predicts a substantial cash drain in the first quarter, with expectations of burning through more cash than previously anticipated. The planemaker has also delayed a company cash-flow goal, attributing these measures to efforts to improve quality amid a worsening crisis. Notably, Boeing has ceased taking incomplete fuselages from Spirit, and the production rate is not expected to return to 38 units per month until later in the year. The Commercial Airplanes unit is projected to incur losses this year. Additionally, Boeing plans to spend up to $4.5 billion by the end of March to enhance quality control on the 737 MAX production line, following incidents where panels and parts have blown out of planes in mid-air. Boeing's stock is down 1.5% in pre-market trading.
Boeing Sees Massive Cash Drain as 737 Max Episode Takes Toll 📉🛬🇺🇸 https://t.co/Pd85yofk5W
WATCH: Boeing will burn through more cash in the first quarter than previously expected. The planemaker also pushed back a company cash-flow goal as it constrains production of its 737 model https://t.co/3LKzYGmX1b https://t.co/zLKXfAebJY
Boeing will burn through more cash in the first quarter than previously expected. The planemaker also pushed back a company cash-flow goal as it constrains production of its 737 model https://t.co/7JLu4hIpJq https://t.co/IJk8wikwFa
🇺🇸BOEING BURNS CASH TO SAVE REPUTATION They will spend up to $4.5 billion by the end of March, higher than previously estimated, as they struggle to improve quality control on their 737 MAX production line. Recently, panels have blown out of planes in mid-air, along with parts… https://t.co/ps52tf0R6d
WATCH: Boeing said it would burn more cash in the first quarter than previously expected and pushed back a company cash-flow goal as it constrains 737 production to improve quality amid a worsening crisis at the US planemaker https://t.co/3LKzYGnuQJ https://t.co/XeIleeUADe
Boeing said it would burn more cash in the first quarter than previously expected and pushed back a company cash-flow goal as it constrains 737 production to improve quality amid a worsening crisis at the US planemaker https://t.co/7JLu4hIXyY https://t.co/jMb6HQQwmC
Boeing sees massive cash drain from 737 MAX crisis CFO says: *Boeing has stopped taking incomplete fuselages from Spirit * Production won't get back to 38 per month until late in year *Commercial Airplanes unit will lose money this year https://t.co/uC4lXHsllz by @juliejohnsson
Boeing said it would burn more cash in the first quarter than previously expected as it limits 737 production to improve quality amid a worsening crisis at the US planemaker https://t.co/fvuj8YElcO
Boeing delays cash flow goal as it limits 737 production in bid to improve quality https://t.co/fOCQCr5khB
Boeing predicted a massive cash drain for the first quarter as regulatory scrutiny and slower output of its 737 Max jetliner following a January midair accident take their toll on its finances. https://t.co/nrQXxgyBiX
Boeing delays cash flow goal as it limits 737 production https://t.co/YT3833JsDn https://t.co/v2LDV8XOoA
Boeing warns on first-quarter cash burn -FT
Boeing warns on first-quarter cash burn oh $BA https://t.co/xmrMU6Rzw5
$BA (-1.5% pre) Boeing has decided to keep 737 production below 38/month -CFO says - SI https://t.co/5IQ3LG14g2
$BA (-1.5% pre) Boeing Sees Massive Cash Drain as 737 Max Episode Takes Toll - BBG https://t.co/HuTtV2iHGR
Boeing warns on first-quarter cash burn https://t.co/xisLXfCx3r
Boeing CFO says made decision to keep 737 production below 38/month https://t.co/ibaT1aTCGh https://t.co/68jfMEx5iT
Boeing cautions that regulatory scrutiny and slower output of its 737 Max jetliner following a January mid-air accident will take a toll on its cash flow projections https://t.co/ALHSCvfnIv
$BA ❖ BOEING CFO SAYS MADE DECISION TO CONSTRAIN 737 PRODUCTION BELOW 38 PER MONTH ❖ BOEING CFO SAYS WE WON'T RUSH OR GO TOO FAST ❖ BOEING CFO SAYS WE'LL FEEL IMPACT OF 737 PRODUCTION CONSTRAINT OVER THE NEXT SEVERAL MONTHS