Boeing (BA) stock slid 2.8% on Wednesday after the company reported losses that were narrower than fear, but still reported negative free cash flow of nearly $4 billion as a result of the 737 Max crisis that has shaken the aerospace giant.
Boeing reported a first quarter core, or adjusted, loss per share of $1.13, narrower than the $1.72 estimated, on revenue of $16.57 billion, which was above forecasts of $16.25 billion but an 8% decline from a year ago.
The plane maker also reported negative operating cash flow of $3.36 billion, compared with a loss of $318 million last year, and negative free cash flow of $3.92 billion, compared with a loss of $787 million last year. Boeing said the results reflect lower commercial delivery volume and did not give updated production plans.
“Our first quarter results reflect the immediate actions we’ve taken to slow down 737 production to drive improvements in quality,” Boeing president and CEO Dave Calhoun said in a statement. “We will take the time necessary to strengthen our quality and safety management systems and this work will position us for a stronger and more stable future.”
After the release, Boeing shares initially rose in early trade, but fell midday after Moody’s downgraded Boeing’s unsecured debt rating to Baa3 from Baa2, citing the “inadequate performance of Boeing’s Commercial Airplanes segment.” Boeing stock has lost more than 36% so far this year.
Boeing’s troubles begin in early in 2024, when an Alaska Airlines 737-9 MAX jet suffered a high-profile door plug blowout. It led to a grounding of its 737-9 MAX fleet, increased scrutiny of the plane maker’s 737 production and safety processes, and decreased overall plane production.
It also led to a new whistleblower documenting production issues with the 787 Dreamliner and the eventual departure of CEO Dave Calhoun. Boeing stock was the second-worst performer in the S&P 500 (^GSPC) during the quarter.
Boeing declined to give 2024 guidance in its report.
In terms of Q1 deliveries, earlier this month, Boeing reported it delivered 83 planes in total, including 67 737…
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