Boeing suppliers up after shorter-than-expected 787 delay

Wed Apr 9, 2008 11:06pm BST
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By Dhanya Ann Thoppil & Bhaswati Mukhopadhyay

BANGALORE (Reuters) - Shares of most of the U.S. suppliers of parts to Boeing's (BA.N: Quote, Profile, Research) much-anticipated 787 Dreamliner plane closed higher after the aircraft maker announced a shorter-than-anticipated third delay in delivery schedules.

Deliveries of the widebody, fuel-efficient aircraft have been pushed back by another six months and are expected in the third quarter of 2009. Analysts were estimating a delay of six to nine months.

Boeing now expects to deliver only 25 of the new planes by the end of 2009, less than a quarter of its previous plan to deliver 109.

Shares of Spirit Aerosystems Holdings Inc (SPR.N: Quote, Profile, Research), which provides the nose for the aircraft, closed up 13 percent at $25.93 on the New York Stock Exchange.

Precision Castparts (PCP.N: Quote, Profile, Research) shares ended up about 4 percent, while those of Rockwell Collins (COL.N: Quote, Profile, Research) and Goodrich Corp (GR.N: Quote, Profile, Research) were up more than 2 percent.

Spirit Aerosystems, which was supposed to be paid upon Boeing starting deliveries of the plane to airlines, on Wednesday said it entered into a cash advance payment agreement with Boeing.

"We are trying to get our production schedule in sync with Boeing's," Spirit spokeswoman Debbie Gann said.

Boeing, which had already delayed deliveries twice since October last year, has been in talks with a number of its suppliers over delivery of parts and payment schedules.  Continued...

 
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