Boeing shares slide 2% premarket on news of further delays in 787 deliveries

The Boeing Co. shares
slid 2% in premarket trade Tuesday, after the aerospace giant said it has identified additional rework that is required on its undelivered 787s, delaying their delivery through the rest of 2021. The company had previously disclosed talks with the FAA on the verification methodology for 787 fuselages and was carrying out inspections. “Based on our assessment of the time required to complete this work, Boeing is reprioritizing production resources for a few weeks to support the inspection and rework,” the company said in a statement. “As that work is performed, the 787 production rate will temporarily be lower than five per month and will gradually return to that rate.” The company is expecting to deliver fewer than half its 787s currently in inventory this year. Boeing delivered 79 aircraft in the second quarter and has delivered 156 in the year to date. Shares have gained 11% in the year so far, while the Dow Jones Industrial Average
has gained 14.3% and the S&P 500
has gained 16.7%.


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