| Boeing Co. (BA) is in negotiations to purchase operations from one of its main suppliers, as part of an effort to gain more control over the supply chain of its troubled 787 Dreamliner program, the Wall Street Journal reported on Wednesday citing to person familiar with the matter.
Are you watching the right charts? Here are 15 charts traders should see every day. 
-
Essential Reading for Traders
-
| | |
| | | | | According to Wall Street Journal Wednesday, aircraft maker Boeing Co. (BA) is negotiating to buy North Charleston, South Carolina-based production facility of its fuselage supplier Vought Aircraft Industries, Inc. The proposed purchase is part of an effort to gain more control over the supply chain of its troubled 787 Dreamliner program, and to gain direct role in the manufacturing process. This is also expected to see the establishment of a second assembly line for the Dreamliner. The companies involved are not confirming the reports. However, a Boeing official reportedly said the company does not comment on possible mergers and acquisitions and a Vought official responded similarly about possible sales. Boeing is reportedly close to announcing that it will buy the facility from Vought Aircraft Industries that makes sections of the Dreamliner fuselage. The negotiations have been under way for months. Recently, Boeing executives' made pronouncements at the Paris Air Show that the company was "actively looking" at establishing a second production line for the 787, but left open the question of timing and location. The setting up of a second assembly line for the Dreamliner would enable it to speed up deliveries once the technical issues are overcome. Dallas-based Vought, an aerospace contractor, is owned by private-equity firm Carlyle Group. With revenues of $1.8 billion, Vought is a major supplier to multiple military and civil aircraft programs. Vought has been a major supplier to Boeing's civil programs from early days of the 737 and was willing to tailor-build a factory in North Charleston to win a place on the prestigious 787 program. The Dreamliner program has been hit by a series of setbacks due to supply chain delays caused mainly by slower than expected completion of work from supplier facilities into the company's final assembly line, unanticipated rework, parts shortages, and fasteners that weren't installed correctly. Early Last week, Chicago, Illinois-based aerospace giant Boeing revealed that the first flight of its 787 Dreamliner would be postponed for a sixth time due to a need to reinforce an area within the side-of-body section of the aircraft. Boeing added that the first flight and first delivery would be rescheduled following the final determination of the required modification and testing plan, and the revised schedule announced within some weeks. Deliveries were scheduled to begin in the first quarter of 2010, with delivery to launch customer Japan's All Nippon Airways Co. The 787 Dreamliner is an innovative mid-sized, wide-body, twin-engine jet airliner currently under development at Boeing's Everett, Washington facility. Earlier in December 2008, the company delayed the delivery of the much awaited fuel-efficient commercial airplane by six months as a result of a 58-day mechanists' strike and a supply chain delay. The postponement of first flight of Dreamliner further pushes the delivery schedule of the aircraft, for which the company has almost 866 orders from 57 airlines around the world, making it the fastest-selling all-new jetliner in aviation history, even after a few cancellations. Dreamliner, which would become the fastest-selling wide-body airliner in history, saw orders for 32 airplanes canceled by mutual agreement with customers during the quarter. Some of the other customers have also deferred orders. In October 2007, Boeing withheld the first delivery until November or December of 2008. Again in January 2008, Boeing rescheduled the first delivery by three months to the first quarter of 2009. In late January 2008, Boeing postponed first deliveries to the third quarter of 2009. Again in December 2008, the company further delayed the delivery for another six months. Boeing launched its ambitious Dreamliner program in April 2004, with a schedule to deliver the first airplane in May 2008. BA closed Wednesday's regular trading session at $42.23, down $0.27 or 0.64% on a volume of 6.35 million shares, lower than the three-month average volume of 7.63 million shares. In the past 52-week period, the stock has been trading in a broad range of $29.05 to $69.50.
More...
Free trading ideas and analysis are always found at LearningMarkets.com.
Keep up with us:
| 
