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Boeing says 737 production woes will last through year’s end
NEW YORK, Aug 9, 2018 (BSS/AFP) – US aerospace giant Boeing on Wednesday
admitted supply chain hold-ups would affect production of its bestselling 737
jetliner until the end of the year, and could hamper third-quarter
deliveries.
The delays are primarily due to issues with fuselage and engine
manufacturers, chief financial officer Greg Smith told the Jefferies Global
Industrials Conference.
“You saw some of that making its way into 2Q deliveries a little bit, and
you’ll see more of that in Q3 where we’ll expect to have deliveries lower
than our production rate,” said Smith, adding there would be a “much more
heavily weighted” fourth quarter.
Like rival Airbus, Boeing is paying the price of a rapid increase in
production, as suppliers struggle to keep up.
“When you’re at 52 a month, the day matters, an hour matters, two hours
matter,” Smith said.
But he insisted Boeing is doing all it can to help suppliers get on top of
the backlog.
“We’re working with (the suppliers), putting resources… particularly into
Spirit,” he said, referring to Spirit AeroSystems, which produces structural
frames.
Also facing difficulties, according to Boeing, is CFM International — a
joint venture between General Electric and France’s Safran — which produces
the new-generation LEAP engine powering the 737.
BSS/AFP/MSY/1035 hrs