Boeing under a microscope for safety issues as it reports results
By Abhijith Ganapavaram and Valerie Insinna
(Reuters) — When Boeing (NYSE:BA) CEO Dave Calhoun delivers the company's fourth-quarter results on Wednesday, he will be doing it while the planemaker is in the middle of its biggest safety crisis since the two fatal 737 MAX crashes in 2018 and 2019.
The company, long a symbol of America's manufacturing prowess, is in the crosshairs of regulators, politicians and airlines following a harrowing mid-air cabin panel blowout on a passenger-filled 737 MAX 9 jet operated by Alaska Airlines earlier this month.
Analysts say Boeing leaders will be trying to assure people that the company's focus is on aircraft safety and production quality.
«The first thing investors should realize… is they are not the direct focus of this call,» J.P. Morgan's Seth Seifman said, adding the primary audience is the Federal Aviation Administration, members of Congress and the traveling public.
«What is important is safety, quality, Boeing's processes, the way that Boeing's workforce performs, and the way that Boeing's managers evaluate and incentivize that workforce. Those are things that I think management will really need to talk about,» he said.
Before the Alaska accident, Boeing was expected to release a new financial and delivery target for 2024 and provide an update on its forecast for 2025-2026, the timeframe in which the planemaker's operations are expected to stabilize.
Boeing projected free cash flow of about $10 billion by 2025-2026, with 737 production expected to reach 50 per month.
All of that is in question after the FAA last Wednesday announced it would not approve further production rate increases for the 737 MAX.
«It gives even less confidence to their guidance and guarantees. A flat
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