Boeing Suppliers Pay The Price Of Production Delays
Several Boeing suppliers face uncertainties about their own production plans and overall financial outlook, because of Boeing’s recent woes.
Boeing’s list of troubles doesn’t seem to be getting any smaller. We have already seen how Spirit AeroSystems is under the same intense scrutiny as Boeing, after the MAX-9 door plug blowout last January.
Photo: Spirit AeroSystemsBut these issues cause production delays, and the delays trigger financial burdens for Boeing suppliers. Investors and market observers were expecting Spirit’s Q1 results to be bad – but they were much worse than expectations.
Spirit supplies “shipsets” for both the 737 and the 787. And with both of these programs facing delays, Spirit’s liquidity is coming under threat. The company’s free cash dropped from $824 million last December, to $352 at the end of Q1.
Photo: Dan Bennett, CC BY 2.0Head Scratching for Boeing SuppliersThese and other bad results also impact Spirit&rsquo..