Boeing Shares Decline After CFO Walks Back 2024 Cash-Flow Target
Boeing CFO Revises 2024 Targets: Crisis?
Boeing shares dropped after CFO Brian West revised the company's 2024 cash-flow targets, indicating a continued cash burn rather than recovery. The situation is exacerbated by additional certification demands from China, which have stalled aircraft deliveries to a key market. Despite these challenges, Boeing remains focused on improving operational and financial performance throughout the year.
What was the percentage drop in Boeing's share price following the announcement, and how significant was this change in the context of recent months?
Boeing's share price fell by as much as 6.7% in US trading following the announcement of the cash-flow target withdrawal and the expected cash burn in the second quarter. This drop was the largest intraday decline in almost four months for the company's stock. The announcement added to the company's ongoing challenges, including production issues, delivery delays, and safety concerns, which have been putting pressure on Boeing's financial performance and market value.
What impact has China's request for additional certification on aircraft parts had on Boeing's operations and financial performance?
China's request for additional certification on some aircraft parts has had a significant impact on Boeing's operations and financial performance. This has halted deliveries to one of the world's most important aviation markets, leading to a worsening financial profile for the company. The cash burn in the second quarter is expected to be similar or even worse than in the first three months of the year, when Boeing ran through almost $4 billion. This setback in China is particularly significant as resuming deliveries of the 737 Max to the country is vital for generating cash as well as reducing its stockpile of already built aircraft lingering from a global grounding nearly five years ago and the Covid-19 pandemic that followed.