Boeing Co (BA) Faces New 737 Model Production Bottlenecks

NYSE: BA | Boeing Company (The) Common Stock News, Ratings, and Charts

BA – Q3 deliveries are expected to slip below factory output as a result.

Boeing Co (NYSE:BA) has kicked up its production tempo substantially, and that decision appears to be catching up to the Seattle-based industrial giant. The planemaker is navigating its way through several issues that are going to impact delivery schedules.  

Bloomberg passes along details on the situation at hand for Boeing.

Boeing Co. is working through cascading supplier problems that will hamper third-quarter deliveries of its 737 jetliner, the planemaker’s largest source of profit.

Hiccups at the makers of fuselages and engines, combined with record 737 output, have contributed to a production logjam at the planemaker’s Seattle-area factory. Like Airbus SE, Boeing is starting to feel the consequences of its fastest-ever tempo for narrow-body aircraft as suppliers struggle to keep pace.

The company expects to deliver fewer 737s than anticipated in Q3 as a result of the various problems. Bank of America Merrill Lynch analyst Ron Epstein provided additional insight into the situation that Boeing is facing in a recent report.

“The problem may likely get worse for Boeing before it gets better,” he wrote. “That said, Boeing is building inventory until it receives engines and other components; however, once the parts arrive and deliveries are made, Boeing will have large cash inflows from airline customers and working capital.”

Boeing Co shares were trading at $343.72 per share on Thursday afternoon, down $2.35 (-0.68%). Year-to-date, BA has gained 17.71%, versus a 7.73% rise in the benchmark S&P 500 index during the same period.

BA currently has a StockNews.com POWR Rating of B (Buy), and is ranked #29 of 72 stocks in the Air/Defense Services category.

Get Free Updates

Join thousands of investors who get the latest news, insights and top rated picks from StockNews.com!

Top Stories on StockNews.com

NYSE: CMG | Chipotle Mexican Grill, Inc. Common Stock News, Ratings, and Charts

Chipotle (CMG) reports earnings, tops expectations

The chain’s stock has soared 63% so far in 2019.
NASDAQ: FB | Facebook, Inc. - Class A Common Stock News, Ratings, and Charts

Facebook (FB) reports Q1 earnings, shares surge

Facebook Inc. shares jumped in late trading Wednesday.
NASDAQ: MSFT | Microsoft Corporation News, Ratings, and Charts

Microsoft (MSFT) reports Q3 earnings, shares move higher

Microsoft reported fiscal Q3 2019 earnings on Wednesday, and the stock jumped 2 percent on better-than-expected revenue.
NYSE: CAT | Caterpillar, Inc. Common Stock News, Ratings, and Charts

Caterpillar (CAT) reports earnings, shares slide

Caterpillar Inc spooked investors for a second straight quarter.
NYSE: TWTR | Twitter, Inc. Common Stock News, Ratings, and Charts

Trump met with Twitter (TWTR) CEO Jack Dorsey at the White House

Trump held a closed-door meeting with Twitter co-founder Jack Dorsey at the White House on Tuesday evening to discuss the social media platform.

Read More Stories


More Boeing Company (The) Common Stock (BA) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All BA News
Page generated in 1.3551 seconds.