- Title: Boeing, suppliers slip as planemaker's crisis deepens
- Date: 17th December 2019
- Summary: VILLAROCHE, FRANCE (FILE - 2016) (REUTERS) EMPLOYEE AT WORK AT FRENCH AEROSPACE ENGINE MAKER SNECMA (SNECMA IS OWNED BY SAFRAN, WHICH PRODUCES ENGINES FOR BOEING 737 MAX JET) EMPLOYEE SECURING SCREWS SNECMA FACTORY VARIOUS OF EMPLOYEES AT WORK AT SNECMA FACTORY RENTON, WASHINGTON, UNITED STATES (FILE - MARCH 17, 2019) (REUTERS) VARIOUS OF PLANES ON TARMAC VARIOUS OF BOEING PLANE TAKING OFF
- Embargoed: 31st December 2019 14:32
- Keywords: Boeing Co Safran Senior Plc crashes shares suspend production of 737 MAX jet
- Location: VILLAROCHE, COLOMIERS AND MONT-DE-MARSAN, FRANCE / RENTON, WASHINGTON, UNITED STATES
- City: VILLAROCHE, COLOMIERS AND MONT-DE-MARSAN, FRANCE / RENTON, WASHINGTON, UNITED STATES
- Country: Various
- Topics: Economic Events
- Reuters ID: LVA001BAD63IF
- Aspect Ratio: 16:9
- Story Text:Shares of Boeing Co and its main global suppliers fell on Tuesday (December 17) after the U.S. planemaker said it would suspend production of its best-selling 737 MAX jet in January, its biggest assembly-line halt in more than two decades.
The 737 MAX has been grounded since March after two crashes in Indonesia and Ethiopia killed 346 people within five months, costing the plane manufacturer more than $9 billion so far.
Britain's Senior Plc, which makes parts including airframes and engine build-up tubes for the MAX, was one of the first suppliers to comment on the suspension, saying it was working closely with the U.S. planemaker to assess the impact of a production shutdown on its 2020 sales.
Safran, which produces engines for the MAX aircraft and owns aerospace engine maker SNECMA, has warned if the aircraft's grounding lasts until the end of the year, its cash conversion could dip below its targeted 50-55% range of recurring operating income.
Boeing's shares fell 1.3% in light premarket trading to $322 whilst shares of France's Safran SA and Senior Plc were down between 9% and 3%, respectively.
(Production: Rosalind Church)
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