(New York) Boeing’s stock fell on Wall Street on Thursday, in reaction to statements by the group’s financial director Brian West, according to which the aircraft manufacturer no longer plans to generate cash in its 2024 financial year.
Around 1 p.m., the stock fell 6.70%. Entangled in a series of difficulties, including a flight incident on January 5, the group has erased around a third of its market capitalization since the start of the year.
“We expect to draw down rather than grow our cash flow this year,” Mr. West said at a conference organized by Wolfe Research in New York.
The financial director said he expects a positive cash flow in the second half, but which will be insufficient to compensate for the negative balance of the first six months.
During the presentation of the aircraft manufacturer’s results at the end of April, Mr. West confirmed the forecast of positive cash flow for 2024, to the tune of less than five billion dollars.
Boeing must face a slowdown in its production rates, linked to structural difficulties but also to directives imposed by the American Civil Aviation Regulatory Agency (FAA).
After the incident on January 5, when the door of an aircraft operated by Alaska Airlines came off in mid-flight, the FAA carried out a thorough inspection of the group’s sites.
It then required the company to limit the production of its flagship plane, the 737, to 38 units per month, while Boeing was aiming to accelerate the pace.
Over the first four months of the year, the manufacturer delivered only 107 aircraft, including 83 from the 737 family.
In addition to the lack of financial income following the slowdown in its production, Boeing also had to compensate several companies forced to keep their 737 Max 9 aircraft on the ground after the Alaska Airlines incident.
On Thursday, Mr. West also indicated that the group had had to interrupt its deliveries to China following a problem with the approval of a lithium battery by the Chinese Civil Aviation Agency (CAAC).
The CFO said he expected the development to negatively impact Boeing’s cash flow.