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CFO
Brian West said Boeing would produce less than 38 737 aircraft
per month, which is the maximum it can produce under the Federal
Aviation Administration's (FAA) imposed limit.
Shares of the company were down 3% before the bell.
Manufacturing quality at both Boeing and supplier Spirit
AeroSystems is facing increased scrutiny following a Jan. 5
incident in which a door plug blew off a 737 MAX 9 plane
mid-flight.
"We're deliberately going to slow to get this right," West said
in a Bank of America conference. "For years, we prioritized the
movement of the airplane through the factory over getting it
done right, and that's got to change."
He added that Boeing's cash burn in the first quarter will be
somewhere between $4 billion and $4.5 billion, "higher than we
originally planned back in January."
The cash burn is due to a combination of lower deliveries, lower
production volumes at its commercial division as well as some
working capital pressure.
West added that Boeing would only take deliveries of fully
conforming fuselages from Spirit.
On a possible buyout of Spirit, West said Boeing would fund any
deal by a mix of cash and debt, rather than using stock.
(Reporting By Abhijith Ganaparavam in Bengaluru and Allison
Lampert in Montreal; Editing by Anil D'Silva and Shinjini
Ganguli)
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