(CercleFinance.com) – Boeing fell nearly 6% on the New York Stock Exchange on Friday after announcing that it planned to slow deliveries of the 737 MAX, its flagship model, due to problems encountered by one of its suppliers.
In a brief press release, the aircraft manufacturer explains that this equipment manufacturer, which it does not name, informed it of the existence of ‘non-standard’ manufacturing procedures in the installation of rear fuselage fittings on certain versions of the aircraft. ‘device.
If they do not present an immediate danger to the safety of the device – which, according to him, can continue to operate normally – these elements are likely to present a risk of non-compliance with the requirements in force, underlines Boeing.
These issues are also likely to affect a significant number of undelivered 737 MAX aircraft, both in production and in storage, he adds.
As a result, the group says it expects a drop in its deliveries of 737 MAX in the short term, while the necessary work is carried out.
Boeing – which states that it has informed the US Federal Aviation Administration (FAA) of the situation – ensures that it is endeavoring to carry out inspections and replace non-compliant accessories if necessary.
It expects to update the market in the coming days and weeks as it plans to measure the impact on deliveries.
‘The MAX represents 28% of Boeing’s turnover in 2023’, underline analysts from Jefferies, who estimate around 10 million dollars the free cash flow (FCF) collected on each aircraft.
According to their calculations, the current difficulties could lead them to reduce their 737 MAX delivery forecast for this year by 20%, which currently stands at 425 units.
The title Boeing is currently dropping 5.8%, signing by far the largest drop in the Dow Jones index.
Copyright © 2023 CercleFinance.com. All rights reserved.
Did you like this article ? Share it with your friends with the buttons below.
