Quality problems weigh on Boeing

Article Excerpt

BOEING CO. $172 remains a hold. The aircraft maker (New York symbol BA; Conservative Growth Portfolio, Manufacturing sector; Shares outstanding: 613.9 million; Market cap: $105.6 billion; Price-to-sales ratio: 1.4; Dividend suspended in June 2020; TSINetwork Rating: Extra Risk; www.boeing.com) delivered 83 commercial jetliners in the first quarter of 2024, down from 130 a year earlier. That drop is mainly due to quality control problems with its 737 Max planes. In January 2024, a fuselage panel came loose on one of those planes. That forced the aircraft, operated by Alaskan Airlines, to make an emergency landing. As a result, regulators ordered Boeing to slow 737 production. The company now plans to buy Spirit AeroSystems Holdings Inc. (New York symbol SPR), which builds the fuselages for the Boeing 737 Max jets. That would give Boeing more control over the quality of the parts it receives from this key supplier. However, buying this firm will cost roughly $3.5 billion. Boeing is a hold. hold…