During its investor conference, Boeing Co BA said it expects to generate a free cash flow of $3-$5 billion in 2023, higher than the $1.5-$2 billion expected this year.
The higher forecast follows expected ramp-up deliveries of 737 MAX and 787 jets, Boeing’s Chief Financial Officer Brian West told investors.
He also said that the company expects to deliver 400-450 MAX planes next year, more than the 375 single-aisle planes it expects to deliver this year.
At the start of the year, it had planned to deliver about 500 single-aisle aircraft, Reuters wrote. Similarly, it expects to deliver 70-80 787 planes in 2023.
Shortages of parts and labor have hobbled production, and forecast changes have left investors fretted.
The company has fallen short of Wall Street earnings estimates for five quarters in a row.
Last week, in its Q3 earnings, Boeing’s Defense, Space & Security unit recorded $2.8 billion of losses on certain fixed-price development programs, driven by higher estimated manufacturing and supply chain costs and technical challenges.
Overall sales increased 4% to $15.96 billion, missing the consensus of $17.83 billion. Adjusted loss per share widened to $(6.18) from $(0.60) a year ago.
Boeing is also expected to provide an update on the certification of MAX 7 and MAX 10 planes. The company faces a late December deadline for the Federal Aviation Administration to certify the planes under existing rules.
Price Action: BA shares are up 4.33% at $149.62 on the last check Tuesday.
Image and article originally from www.benzinga.com. Read the original article here.