Boeing 737 Max Production Stabilization Delayed, CEO Kelly Ortberg Says
Shares fell over 5% after the executive cited wing assembly constraints at the Renton plant and provided updates on Max 10 certification.
Boeing CEO Kelly Ortberg disclosed to investors on Wednesday that stabilizing output for its 737 Max commercial aircraft family is taking longer than previously anticipated, CNBC Business reported.
Following the executive's remarks, Boeing stock experienced expanded losses, declining more than 5% during afternoon trading.
The aerospace manufacturer has been striving to progressively increase assembly rates for its most popular aircraft line following extended quality assurance and safety challenges.
Speaking at an industry conference hosted by Morgan Stanley, Ortberg identified wing production at the company's Renton, Washington facility as a current operational bottleneck. He noted that Boeing has put plans in place to mitigate the constraint.
Despite the ongoing operational hurdles, the chief executive maintained that Boeing expects to raise its overall aircraft output next year.
Ortberg also reaffirmed his expectation that regulatory certification for the Max 10 will occur "very soon." The Max 10 represents the largest variant in the 737 Max line, though its timeline is currently running years behind schedule.
Addressing potential international business, Ortberg did not state that plane orders from Chinese buyers were expected during an upcoming Sept. 24 meeting between President Donald Trump and Chinese leader Xi Jinping at the White House.
Ortberg noted that potential acquisitions from Chinese commercial carriers will be announced independently by the individual airlines according to their own timelines.
Sources
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