Boeing Sees Massive Cash Drain as 737 Max Episode Takes Toll
- CFO sees cash outflows up to $4.5 billion in first quarter
- Factory slowdown, regulatory scrutiny put pressure on finances
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Boeing Co. predicted a massive cash drain for the first quarter as regulatory scrutiny and slower output of its 737 Max jetliner following a January mid-air accident take their toll on its finances.
Cash outflow will reach $4 billion to $4.5 billion in the first quarter, Boeing Chief Financial Officer Brian West told a Bank of America conference in London on Wednesday. For the full year, free cash flow will be in the low-single-digit billions of dollars, West said. Analysts expected $5 billion, according to data compiled by Bloomberg.