Boeing Cuts 737 Delivery Goal for Year

livemint.com:

Boeing booked a third-quarter loss and lowered delivery goals this year for its 737 MAX jet, which accounts for the bulk of the plane maker’s output. Boeing lost $1.64 billion in the quarter ended Sept. 30, more than analysts expected, and it reported negative cash flow from its operations.

But the company met expectations for sales, and executives kept their full-year and medium-term financial guidance unchanged. MAX production has been running at about half the company’s target while Boeing and one of its largest suppliers race to fix misdrilled holes on the jet’s fuselage. “When we set our recovery plans, we knew issues would come up along the way," Boeing CEO Dave Calhoun wrote in a message to employees.

He said improved quality procedures and a culture that rewards speaking up about problems means the company is finding more things in need of repair. “I have heard those outside our company wondering if we’ve lost a step. I view it as quite the opposite," Calhoun wrote.

The company said Wednesday that it will this year deliver between 375 and 400 of the 737 jets. It had previously set out to deliver 400 to 450 this year, and executives had said in September that they believed they could hit that target. Boeing said Wednesday that it still expected to deliver 70 to 80 787s.

Earlier this month, Boeing and the supplier, Spirit AeroSystems, expanded the scope of fuselage inspections to include hand-drilled holes in addition to those made using an automated drill. Boeing says there is no immediate flight-safety concern tied to the Spirit defect. But rooting out and repairing the misdrilled holes is complicated and time-consuming.