Business Corpus: Boeing Suppliers GE, Spirit To Weigh On Deliveries Amid Ramp-Up PlansBoeing warned that supply-chain issues will hit Q3 deliveries, offering a reminder of the risks the aerospace giant and rival Airbus face as they look to boost production rates. The post Boeing Suppliers GE, Spirit To Weigh On Deliveries Amid Ramp-Up Plans appeared first on Investor's Business Daily.

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Boeing (BA) warned Wednesday that supply-chain issues will hit third-quarter deliveries, offering a reminder of the risks the aerospace giant and rival Airbus (EADSY) face as they look to boost production rates.

CFO Greg Smith said the number Boeing deliveries actually made to customers will be lower than what is produced in Q3 because of issues with suppliers, like fuselages from Spirit AeroSystems (SPR) and engines from General Electric (GE)- Safran International joint venture, CFM.

"You'll see a more heavily weighted fourth-quarter," he said at the Jefferies Global Industrials Conference.

The supplier woes come as Boeing looks to boost production of its 737 line from 52 to 57 per month. Meanwhile, rival Airbus wants to build 63 A320neos per month by Q2 2019, up from 55 currently, and is looking to ramp up production of the narrow-body even higher to 70 to 75 per month as demand soars for narrow-body jets.

Smith was asked about Airbus' aggressive production plans and said Boeing is using a more disciplined process.

"The demand is there. But if your supply chain or yourself can't meet that demand, there is no upside for you or your customer or supplier to put you in that risk profile that's not necessary," Smith said.

Indeed, some Airbus customers have converted some orders due to delays delivering aircraft, with Boeing being the beneficiary in a few cases. In particular, problems with United Technologies' (UTX) Geared Turbofan engine have held up some key deliveries. But GE and Rolls-Royce have had trouble keeping up with rising production rates as well.

Boeing shares fell 1% to 347.09 on the stock market today. Airbus' U.S.-listed shares were also down 1% to 31.30. GE also fell 1% and Spirit AeroSystems was off 0.8%.

Suppliers, already constrained, aren't making any promises to help Airbus' reach it's lofty goal.

"Today we are not going to commit to a higher rate," CFM executive VP Sebastien Imbourg said last month ahead of the Farnborough Airshow. "We are looking continuously at the supply chain. We are already on a very incredible ramp-up."

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The post Boeing Suppliers GE, Spirit To Weigh On Deliveries Amid Ramp-Up Plans appeared first on Investor's Business Daily.