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REUTERS/Nick Oxford Acquire Licensing RightsNov 1 (Reuters) - Spirit AeroSystems (SPR.N) on Wednesday projected higher-than-expected cash burn for 2023 as it slashed anticipated deliveries of 737 fuselages, but its new CEO said returning the embattled aerospace supplier to positive cash flow will be his "principle goal." "However, we have other cash levers to pull," including organizational inefficiencies and more closely enforcing contracts with its own supply chain, he said. LOWERED 737 DELIVERY EXPECTATIONSOn Wednesday, Spirit increased its anticipated free cash burn to between $275 and $325 million for 2023, compared with the $200 million to $250 million range. Executives said they anticipate positive margins on the 787 program by the first half of 2025 as a result of the agreement with Boeing. Third-quarter cash burn was $136 million, compared with a cash burn of $73 million a year ago.

Persons: Nick Oxford, Patrick Shanahan, Robert Stallard, Shanahan, Abhijith, Maju Samuel, Louise Heavens, Jonathan Oatis, Marguerita Choy Organizations: Spirit AeroSystems Holdings Inc, REUTERS, Boeing, Vertical Research Partners, Airbus, Revenue, Thomson Locations: Wichita , Kansas, U.S, Bengaluru

Meanwhile, Boeing and Spirit, a supplier for the U.S. planemaker and European rival Airbus(AIR.PA), are contending with a lapse involving misdrilled holes on Boeing’s 737 MAX. Boeing is expected to report a loss of $2.23 per diluted share, compared with a loss of $5.49 a year ago. Spirit is projected to report a loss of $1.03 a share, compared to a loss of $1.22 a year earlier, according to LSEG data. The target may no longer be achievable if Boeing can no longer meet its goal of delivering 400 737s this year. Spirit, which reports Nov. 1, has already revealed preliminary results as part of a new price agreement with Boeing.

Persons: Benoit Tessier, Whitney, Rob Stallard, ” RTX, Ron Epstein, Vertical's Stallard, Patrick Shanahan, Pat, Michel Merluzeau, Shanahan, Valerie Insinna, Pratyush Thakur, Ben Klayman, Josie Kao Organizations: Boeing, International Paris Air, Le, REUTERS, Rights, Pratt, U.S, Airbus, Research, LSEG, ” Bank of America, Thomson Locations: Le Bourget, Paris, France, Washington, Bengaluru

A Boeing 737 MAX-10 lands over the Spirit AeroSystems logo during a flying display at the 54th International Paris Air Show at Le Bourget Airport near Paris, France, June 22, 2023. Under the agreement announced on Wednesday, Spirit will get a higher price per 787 unit in the near term, while 737 unit prices will be cut from 2026 to 2033. The agreement also includes a "control clause" requiring Boeing's input if Spirit were to be acquired. Overall, the agreement should stabilize Spirit and pave the way for a future agreement with Airbus, he added. Boeing said the agreement "will enhance operational stability in our production system and help us deliver on our customer commitments."

Persons: Benoit Tessier, Tom Gentile, Robert Stallard, Patrick Shanahan, Abhijith, Valerie Insinna, Arun Koyyur, Jonathan Oatis Organizations: Boeing, International Paris Air, Le, REUTERS, Wednesday, Airbus, Research, Thomson Locations: Le Bourget, Paris, France, Bengaluru, Washington

Visitor passes the Raytheon Technologies Corporation (RTX) logo at the 54th International Paris Air Show at Le Bourget Airport near Paris, France, June 22, 2023. In July, RTX said a rare powder metal defect could lead to the cracking of some engine components and called for accelerated inspections affecting 200 engines by mid-September. Repair work that CEO Greg Hayes had initially expected would take 60 days is now projected to last up to 300 days per engine. An average of 350 jets could be grounded per year through 2026, with as many as 650 jets sitting idle in the first half of 2024. Disclosing higher-than-expected gross costs of $6-7 billion for dealing with the problem, RTX said it expected an up to $3.5 billion pre-tax hit to profits over the next several years.

Persons: Benoit Tessier, Pratt & Whitney, RTX, Greg Hayes, Safran, Hayes, Germany's, Robert Stallard, Valerie Insinna, Abhijith, Tim Hepher, Arun Koyyur, Nick Zieminski, Grant McCool Organizations: Raytheon Technologies Corporation, International Paris Air, Le, REUTERS, Pratt &, RTX Corp, Airbus, Pratt, Raytheon, GE, CFM, Boeing, Aero, Germany's Lufthansa, AIRBUS, U.S, Spirit Airlines, JetBlue Airways, Hawaiian Airlines, Jefferies, Vertical Research Partners, Thomson Locations: Le Bourget, Paris, France, Clayville , New York, Washington, Bengaluru

Microscopic contaminants were found in a metal used in the engine's high-pressure turbine discs - part of the engine core. In an interview, Chief Executive Greg Hayes acknowledged the airlines' frustration over a spate of problems with the Geared Turbofan (GTF) engines over the last seven years. While the latest GTF issue could be the last straw for some, we suspect that the negative (share price) response is overdone". Low-cost Indian carrier Go First, which plunged into financial crisis this year, blamed "faulty" Pratt & Whitney engines for the grounding of about half its 54 Airbus A320neos. Announcing quarterly earnings on Tuesday, RTX increased its 2023 sales expectation from $72 billion to $73 billion to $73 billion to $74 billion.

Persons: Whitney, Pratt, Greg Hayes, Safran, RTX, Robert Stallard, Wizz, Hayes, Pratyush Thakur, Valerie Insinna, Mike Stone, Susan Mathew, Rajesh Singh, Tim Hepher, Shounak Dasgupta, Sharon Singleton, Nick Zieminski Organizations: Pratt, Airbus, U.S, RTX Corp, Raytheon Technologies, CFM International, GE, Reuters, Research, Spirit Airlines Inc, JetBlue Airways, Wizz, Thomson Locations: Paris, Bengaluru, Washington, Chicago

Boeing shares rose 2.5% in early afternoon trade after the company reaffirmed its plans to generate $3 billion to $5 billion in free cash flow this year, as well as deliver 400 to 450 737 MAXs and 70 to 80 787 Dreamliners. Deliveries will increase to about 40 MAXs a month during the back half of the year, he said. Reuters reported earlier this month that Boeing's schedule called for suppliers to produce 38 737 MAXs a month from June. Reuters GraphicsBoeing's first-quarter cash burn slowed to $786 million from $3.57 billion a year earlier on higher jet deliveries. Reporting by Abhijith Ganapavaram in Bengaluru and Valerie Insinna in Washington; Editing by Anil D'SilvaOur Standards: The Thomson Reuters Trust Principles.

April 26 (Reuters) - Boeing Co (BA.N) said on Wednesday that it planned to ramp up production of its 737 MAX jets to 38 per month by year-end, while backing its annual cash-flow goal, offering some relief to investors after a new manufacturing snafu threatened to derail deliveries. Reuters reported earlier this month that Boeing's schedule called for suppliers to ramp up to 38 737 MAXs a month in June. Overall, Boeing reaffirmed plans to generate $3 billion to $5 billion in free cash flow this year, as well as deliver 400 to 450 737 MAXs and 70 to 80 787 Dreamliners. Boeing reported an adjusted loss per share of $1.27, wider than analyst expectations of a loss of $1.07 per share, per Refinitiv data. Boeing executives are expected to detail the scope of the problem on an investor call later in the day.

☆ Boeing investors seek answers after latest 737 production glitch
▼ + stars: | 2023-04-24 | by ( Valerie Insinna | ) www.reuters.com time to read: +2 min

Investors are clamoring for details on the extent of the problem, which Boeing said involves a “significant” portion of the 737 fleet where two brackets were improperly installed. But Wall Street has received little information from Boeing on its plan to fix the problem and the overall financial impact. “I'd like to have some numbers and some scale of the materiality of this, whether it affects deliveries, cash flow and all the rest,” Vertical Research Partners analyst Robert Stallard said. Calhoun said last week that Boeing will not revise current plans to increase MAX production this summer. However, the company has slowed 737 MAX deliveries, and the resulting delivery delay will remove approximately 9,000 seats from airlines’ summer schedules.

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