Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Uncertainty dogs 787 deliveries, MAX approval ahead of Boeing Q3

10/27/2021 | 05:54am EST
FILE PHOTO: The Boeing logo is displayed on a screen, at the NYSE in New York

(This Oct. 26 story refiles to add reporting credits)

By Eric M. Johnson

SEATTLE (Reuters) - Hopes of an imminent breakthrough in deliveries of Boeing Co's 787 jetliner were fading on Tuesday after a top supplier reported a lull in activity and two industry sources said the jetmaker continued to wade through lingering factory problems.

Boeing shares fell 1.4% on the eve of quarterly earnings due on Wednesday, reaching their lowest level since Sept. 21 as uncertainty continues to plague its main commercial programs.

More than 100 long-haul 787s are parked, locking up an estimated $9 billion in cash, after a series of manufacturing issues over the past two years compounded weak demand.

"There is a substantial risk that Boeing will recognize a charge related to the program at Q3 results," Bernstein analyst Doug Harned wrote last week.

The 787 problems have stifled a crucial source of cash as Boeing's main cash cow, the 737 MAX, recovers gradually from a two-year safety crisis triggered by fatal crashes.

"We are progressing through our comprehensive inspections and reviews, and will continue to take the time necessary to meet the highest standards, while coordinating closely with our suppliers and customers," a Boeing spokesperson said on Tuesday when asked about the 787 issues.

While the MAX received Western approvals late last year, Boeing faces renewed uncertainty over the timing of its re-entry to service in China, which drives a quarter of its sales.

China had been expected to approve the MAX in November but chances are growing this will slip to next year, sources said.

China's regulator did not respond to a request for comment.

A Boeing spokesperson declined to comment on China or the MAX.

Although Boeing and Chinese regulators recently carried out a successful test flight, the clearance has become tangled in diplomatic tensions with the United States.

Boeing said earlier this year it would deliver fewer than half of the 100 or so 787s in its inventory this year, instead of the "vast majority" previously expected. So far this year it has delivered 14.

Hopes are fading that a meaningful number could be delivered before year-end, one of the industry sources said, although a handful of deliveries could not be ruled out.

One supplier said Boeing had not given parts makers an indication of its timing one way or the other, leaving uncertainty over the timetable for deliveries.

Raytheon Technologies, which supplies a raft of systems, said on Tuesday it was not shipping anything for the 787.

Boeing has been grappling with manufacturing flaws that produced structural defects in the 787 and have twice halted deliveries, with the latest stoppage ongoing since May.

(Reporting by Eric M. Johnson in Seattle, Tim Hepher in Paris, Stella Qiu and Norihiko Shirouzu in Beijing; Editing by Howard Goller)


ę Reuters 2021
Latest news "Economy & Forex"
11:44aU.S. wheat falls as weather improves; corn, soy firm after export deals
RE
11:41aAbbVie settles New York opioid case for $200 mln as trial winds down
RE
11:39aDyson loses fight for $198 mln compensation over EU energy labeling rules
RE
11:33aAirbus takes lead in Dutch KLM jet contest - sources
RE
11:31aBank of Canada keeps rates unchanged, still sees possible hike in April
RE
11:25aPRESS RELEASE : Federal Court Sanctions Slovakian Trader and His Principals for Spoofing and Engaging in a Manipulative and Deceptive Scheme
DJ
11:24aIKEA malls business to invest around $1.2 billion in India - executive
RE
11:21aOil steadies as investors assess Omicron's impact
RE
11:19aInstagram head calls for an industry body to help keep kids safe online
RE
11:10aDigital euro, Swiss franc trials were successful, c.banks say
RE
Latest news "Economy & Forex"