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Boeing (NYSE:BA) said on Wednesday that supply chain disruptions have slowed production and deliveries of its 737 MAX plane in recent weeks, but it does not expect any change to its overall plan for the year, Reuters reports.
CFO Brian West told a Goldman Sachs conference it is coping with shortages from multiple suppliers of a particular wiring connector, but overall the company would be able to produce 31 jets/month as planned.
“It’s a reflection of a crazy supply chain world that we live in right now,” West said, according to Reuters. “It’s fairly localized and isolated, but we have options and we’re working them hard.”
West also said Boeing (BA) is nearing an end to delivery delays of the 787 Dreamliner that have hurt cash flow and lifted debt, and the company would not need to tap credit lines or raise equity immediately.
However, the CFO said “all options are on the table” over the longer term, such as an equity raise, as deliveries and production bounce back.
West blamed April’s drop in 737 MAX deliveries on a lack of wiring connectors; Boeing (BA) reported total deliveries of 35 aircraft in April – including 28 MAX planes – which fell from 41 jets delivered in March.
