Boeing surprises with positive cash flow in second quarter
Boeing surprised Wall Street on Wednesday by reporting a positive second-quarter cash flow and kept its target for the year in a sign the US planemaker was gradually overcoming costly production difficulties.
Shares of the manufacturer rose 2.7% as deliveries of 737 MAX planes more than doubled and Chief Executive Dave Calhoun said Boeing was in the “final stages” of preparing to restart 787 Dreamliner deliveries, Reuters reported.
Although the company posted a higher-than-expected adjusted loss due to the charges, operating cash flow was $81 million for the quarter. Analysts had expected a $480.33 million cash burn, according to Refinitiv data.
→ Boeing beats Airbus at Farnborough Airshow 2022.
“While the second quarter results were still far from perfect, this is Boeing’s cleanest quarter in a long time,” said Robert Spingarn, an analyst at Melius Research.
Boeing’s cash flow has become a focal point for investors as the planemaker took out a large loan to weather successive crises caused by the 737 MAX grounding and the pandemic. The company’s debt stood at $57.2 billion as of June 30.
Some analysts were skeptical that Boeing would achieve its cash flow goals this year as the company grapples with supply chain disruptions and industry-wide labor shortages that have hampered production.
The resumption of Dreamliner deliveries would mark a major milestone for Boeing as it looks to turn its fortunes around amid a resurgence in air travel.
Deliveries of the plane have been halted for more than a year due to inspections and repairs to fix manufacturing flaws in an industrial headache that cost the company about $5.5 billion.
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