The problems are starting to ease for aircraft manufacturer Boeing, which is now ramping up production of the company's cash cow, the 737 model. The stock turned positive after the news.
Boeing has struggled with major production problems in the past year as supply disruptions have caused a shortage of components, while the company has struggled to regain customer trust after the two high-profile accidents in 2018 and 2019 that led to the 737 Max aircraft model being grounded from all traffic.
Now, however, it appears that the pace at the factories has been increased. Boeing expects the company to have a monthly production rate of 38 737 planes by the middle of the year, which is several months earlier than expected, according to information provided to Bloomberg.
The production of the 737 model, which is a twin-engine jet, is particularly important as it is seen as Boeing's cash cow.
The company aims to reach free cash flow of $10 billion in either 2025 or 2026 without losing market share to competitor Airbus. For 2023, the forecast is $3-5 billion.
Boeing's stock traded just below zero for much of Thursday evening, but turned positive when the production increase data was released. At 9 p.m., the stock is up 0.4 percent.
Source: DI.SE
