BA image

Boeing Co (BA) Faces New 737 Model Production Bottlenecks

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.

Try StockNews.com Premium Today!


Get access to our daily newsletters, Best Stocks List, POWR Ratings, and much more!
Free for 14 days -- no credit card required!

Sign Up Now

BA at a Glance

BA Current POWR Rating™
Overall POWR Rating™
BA Current Price $350.74 1.25%
More BA Ratings, Data, and News

BA Price Reaction

The day of this event (Aug. 9, 2018)
BA Closing Price$343.72 0.68%
BA Volume2,302,100
45.84% from avg
Leading up to this event
BA 1-mo return1.71%
After this event
BA 1-day return1.96%
BA 3-day return2.04%
BA 5-day return0.03%

BA Price Chart



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 0.968 seconds.