Boeing (NYSE:BA) stock is sinking 6% in early trading. The plane manufacturer said that the deliveries of its 737 Max planes may drop meaningfully for a short amount of time because of a problem with the fuselages of a portion of them.
The company has stopped delivering some varieties of the 737 Max planes.
Boeing stated that there was a problem with its “aft fuselage fittings,” which could cause the planes to fail to comply with regulations. The fuselages were made by Spirit Aerosystems (NYSE:SPR), which manufactures parts for planes.
According to Boeing, Spirit utilized an unusual “manufacturing process” when it placed the fittings in a number of Boeing’s planes. Spirit reported that it has changed its production process in order to resolve the problem.
Boeing stated that the deficiency of the fuselages does not constitute any immediate safety concerns, and the FAA agreed with that assessment. As a result, no planes that have already been delivered have to be grounded.
In early trading, SPR stock is tumbling 13%.
BA Stock: Boeing’s Recent Performance
Last month, Boeing “delivered 64 planes, the most since December,” Seeking Alpha reported. Of those 64 planes, 52 were its Max jets.
Also noteworthy is that the company’s deliveries jumped 37% year over year last quarter to 130, well above analysts’ average estimate of 120.
In the last month heading into today, BA stock was up 6.2%, while it has climbed 12% this year and 17.5% in the last 12 months. Strong travel trends and major orders from a number of airlines have pushed the shares higher in recent months.
On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.