Market Overview

Spirit Aerosystems Down Slightly Following Fuselage Derailment

Related BA
Tensions & Airlines Boost ETFs (ITA, PPA, BA, LMT)
What These 5 Defense Contractors Are Spending To Lobby Congress
Second Reading on 2Q GDP, Much More Data Due Next Week (Fox Business)

Spirit Aerosystems (NYSE: SPR) is down over one percent as investors and traders worry about the viability of Boeing's (NYSE: BA) supply chain.

Following the July 3rd derailment of fuselages being sent to Boeing's Renton plant in Washington state, Boeing's supply chain handling its production levels with just one supplier is brought into question.

Boeing has recently pushed itself to produce 42 of the 737 aircraft per month, up from 38 previously. For such high expectations of production, some may be questioning the ability of Boeing to achieve these goals with only Spirit Aerosystems providing supplies. This is a problem for Spirit because of the new supply agreement the company struck with Boeing in April.

Spirit has been a beneficiary of partnering with Boeing, as the company can suspend repaying advances made by Boeing for work done on the 787 aircrafts.

Boeing shares were last up 0.63 percent to $129.31; Spirit Aerospace was down 1.29 percent to $33.80.

Posted-In: News Events

 

Related Articles (BA + SPR)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters