It appears that Boeing (NYSE: BA) is facing another delay for deliveries of its 787 Dreamliner and the company’s CEO is facing a major challenge to his credibility. After two significant set-backs in the delivery timetable, the firm has said it is on schedule for next year.
The German daily Die Welt writes that it has become aware of delays though letters from Boeing to customers. As Reuters points out "None of the 55 or so airlines which have bought the plane have canceled their orders, but many have said they will seek compensation for late deliveries."
Leaving aside the embarrassment to Boeing’s management, more delays on the time table could have a severe effect on the company’s earnings forecasts. Boeing’s stock has already taken a beating because of its earlier problems with the 787. It now trades at $85.69 down from its 52-week high of $107.83.
If the news is accurate, Boeing may have to adjust its financial projections. And, that will likely mean a sell-off in the company’s shares.
Douglas A. McIntyre