Investing.com -- Shares in Boeing Co (NYSE:BA) gained more than 3% in premarket U.S. trading on Wednesday after the planemaker posted better-than-expected operating cash flow in the first quarter and said it planned to increase output of its 737 jets.
Cash flow and plane deliveries have become a focal point for investors following the discovery of a manufacturing defect at a supplier, which has threatened to disrupt the company's ongoing recovery from two fatal crashes of its 737 MAX jet in 2018 and 2019.
The firm unveiled negative operating cash flow of $318 million, improving from the prior level of negative $3.22 billion. Despite still being in sub-zero territory, the figure was above estimates of $1.49B.
Boeing is also aiming to ramp up production of its 737 MAX airplanes to 38 per month later this year, the company said. Output of the widebody 787 Dreamliner is currently at three per month, although the group plans to move this number up to five per month "in late 2023."
“We are progressing through recent supply chain disruptions but remain confident in the goals we set for this year, as well as for the longer term," said president and chief executive officer Dave Calhoun in a statement.
Looking ahead, Boeing is targeting free cash flow of $3B to $5B on a non-GAAP accounting basis in its 2023 financial year, along with 400 to 450 deliveries of the 737 MAX.
However, Calhoun flagged that "near-term deliveries and production" of the 737 MAX will be impacted by "necessary inspections and rework" of the jet.