The Chicago Journal

Boeing reveals plans for 737 Max production

Boeing Boeing just announced its first-quarter financial report, and the results produced had varied responses.

While the company’s revenue exceeded expectations, profits lagged.

Furthermore, despite production issues, Boeing announced plans to increase the output of its 737 Max planes.

The company

Boeing is a global firm based in the United States that designs, manufactures, and sells aircraft, helicopters, rockets, satellites, and missiles all over the world.

It is one of the largest aerospace businesses in the world, with headquarters in Chicago, Illinois.

Boeing manufactures both commercial and military aircraft, such as the well-known 737, 747, and 787 types.

Demand, supply chain interruptions, and production efficiency are all factors that impact its manufacturing speed.

In recent years, Boeing has suffered a number of setbacks, including the grounding of its 737 MAX series jets, which has reduced its manufacturing pace and financial performance.


Boeing said on Wednesday that it intends to boost 737 Max production from 31 to 38 planes by 2023.

Given the ongoing production problems with certain planes, the comment was unexpected.

Boeing needs to send jets to airlines as quickly as possible, therefore the production pace for the best-selling planes will be the quickest in years.

Airlines are hoping to profit from a revival in air travel.

Furthermore, Boeing anticipates deploying 400 to 450 737 planes in 2023.

“This is an important year for us,” Boeing CEO Dave Calhoun told staff in a memo on Wednesday.

“As demand surges across our markets, we must focus together on execution and meeting our customer commitments.”

Boeing also plans to increase 787 Dreamliner manufacturing from three planes today to five planes one month later in 2023.

Shares and revenue

Boeing announced quarterly revenues of $17.92 billion, a 28% increase over 2022 and a $2 billion increase above projections of $17.43 billion.

According to the company, demand for their aircraft has surged.

Meanwhile, Boeing’s adjusted EPS loss for the quarter ($1.27) was higher than the $0.97 predicted by Wall Street.

“We delivered a solid first quarter and are focused on driving stability for our customers,” said Calhoun.

“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.”

“Demand is strong across our key markets and we are growing investments to advance our development programs and innovate strategic capabilities for our customers and for our future.”

Read also: Breaking Down the Numbers: How Michigan’s Online Gambling Revenue Could Serve as a Model for Chicago’s Economic Growth


For 2023, the business reiterated its previous expectation of $4.5 billion to $6.5 billion in operational cash flow and $4 to $5 billion in free cash flow.

Boeing also confirmed its previous 737 Max prediction of 400 to 450 deliveries in 2023.

The data was released following a manufacturing setback with the 737 Max in mid-April, when the firm warned that a problem with fuselage brackets may cause deliveries to be delayed.

“We will work diligently through rework of affected airplanes in production and storage to ensure each meets our standards of prior delivery,” said Calhoun.

“This effort will impact the timing of deliveries over the next several months.”

Production and delivery

Dave Calhoun indicated that the problem would cause a two-week delay in manufacturing.

According to the company’s website, Boeing now has a backlog of 4,219 737 planes.

In February, Boeing’s 787 Dreamliner encountered a delivery delay, causing the firm to halt deliveries owing to a fuselage component failure.

When the company addressed the FAA’s concerns about the Dreamliner’s front pressure bulkhead in early March, the problem was resolved.

The 787 Dreamliner program, according to the business, is presently manufacturing three planes per month, with plans to increase production to five later in 2023.

They also intend to raise it to ten every month by 2025/2026.

New deals

Boeing signed an agreement with Saudi Arabia in March.

Saudi Arabian Airlines and a new business called Riyadh Air made an order with the company for about 121 787s.

A total of 78 planes are considered definite orders, with an additional 43 planes for sale.

Riyadh Air was the recipient of 72 of the 121 orders placed.

The transaction is expected to be worth $40 billion.

“It is significant,” said Calhoun.

Chicago set to lose Tyson Foods among other companies as they leave for a new headquarters

Companies with offices in Chicago have moved offices, and Tyson Foods is the latest company to join Boeing, Caterpillar, and Citadel.

The announcement

On Wednesday, the poultry producer announced it would be reuniting its employees at Arkansas, Tyson Foods’ global headquarters.

As a result, three offices in downtown Chicago, Downers Grove, Illinois, and Dakota Dunes, South Dakota, will be closed.

More than 1,000 employees will begin the move early next year, where they will work in three offices.

Tyson Foods CEO Donnie King released a statement saying:

“Bringing our talented corporate members and businesses together under one roof unlocks greater opportunities to share perspectives and ideas, while enabling us to act quickly to solve problems and provide the innovative products solutions that our customers deserve and value.”

Chicago crimes

Losing Tyson Foods will be another blow to the city of Chicago.

The city has already built a reputation for its crime, something McDonald’s CEO Chris Kempczinski has criticized.

The headquarters of the fast food chain are currently in Chicago.

Kempczinski recently claimed that crime is spreading to all corners of the city and revealed that people often ask him what’s going on in the city.

Speaking to the Chicago Economic Club last month about the plight of the city, he said:

“We have violent crime that’s happening in our restaurants… we’re seeing homelessness issues in our restaurants.”

“We’re having drug overdoses that are happening in our restaurants.”

“So we see in our restaurants, every single day, what’s happening in society at large.”

Chris Kempczinski said recruiting people for the McDonald’s office has been difficult.

“One of the things that I hear from our employees [is] … ‘I’m not sure it’s safe to come downtown.’”

McDonald’s said it would stay in Chicago.

Other companies, however, are more reticent about why they are leaving the city.

Tyson Foods said their move had nothing to do with the Chicago crime.

Other companies in Chicago

Last May, Boeing announced its departure from Chicago in favor of Washington, DC.

However, the company did not contribute to the determination of the crime.

Instead, analysts said the change signaled the company had lost the trade run to Airbus.

They suggested that Boeing primarily wanted to be seen as a defense and aerospace company.

Boeing was based in Seattle for decades, from its inception in 1916 until 2001.

Caterpillar and Citadel also announced they would be leaving Chicago and moving to various locations outside of Illinois.

The construction company was based in Deerfield, a suburb of Chicago.

Tyson Foods

Like other businesses, Tyson Foods had a tough year due to inflation.

The company said demand for chicken was extremely strong while its more expensive cuts of beef were softened.

During the last quarter, the average selling price of broiler chicken by weight decreased while the average selling price of beef and pork increased.

The price drop comes as consumers stock up on some premium cuts.

While consumer demand for meat has remained strong, consumers are switching between meats due to inflation.

Tyson Foods plans to launch new, more affordable options and add new, larger packs for value-seeking consumers.

Meanwhile, the company’s shares are down about 25% this year.


Big companies keep leaving Chicago. What’s going on?