Boeing Addresses Japanese-quake Disruptions (NYSE:BA)
The Boeing Company (NYSE:BA) is finding other sources to deal with the quake-related disruption occurring with Tier 2 suppliers in Japan. The company indicated they are doing this without an impact on the 777 and 787 manufacturing (heavily dependent on Japan).
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MarketWatch reports that Boeing Co. saw some quake-related disruption among its second-tier suppliers in Japan, but the aircraft builder has found other sources and there's been no impact to 777 or 787 production, Chief Financial Officer James Bell said Wednesday.
"Our major structural partners are well outside of the region where the bulk of the damage occurred," Bell said, speaking at an analyst conference.
Major components for the 777 and 787 are built in Japan. Meanwhile, Boeing is exploring a possible re-design of its popular 737 jetliner. But despite problems in its extensive global supply chain for the 787, Bell said the company would adopt the same strategy for the 737 -- with modifications -- to keep development costs down and help with foreign sales. (Source: http://www.marketwatch.com/story/boeing-works-around-japanese-quake-disruptions-2011-03-23)
BA shares are trading at $72.20, up 0.48% on volume of 1.40M shares at this point today. Boeing 's shares are now just 5.3% below its 52-week high.