Textron and Boeing report supply chain problems
Supply chain problems have affected Textron and Boeing’s financial performance in the third quarter (Q3) of the year.
Textron Aviation reported that its turnover was down $14m in Q3 to $1.2bn, while Boeing reported a net loss of $3.3bn on its $16bn turnover.
Dave Calhoun, president and CEO, Boeing said the supply chain, inflation, labour shortages and macroeconomic problems are “challenging for everybody” and that he is not anticipating supply chain issues getting any better in the near term.
Calhoun said the solution to the problem is not “pushing the system too fast”. He added: “We slow down when we have to and we try not to compound problems that may arise from the supply chain or from our own shops.”
Meanwhile Scott Donnelly, chairman, president and CEO, Textron said the reduction in the number of jets delivered (from 49 to 33) is due to supply chain disruptions throughout the year that have impacted production schedules. As a result, for the full-year results, Donnelly expects the aviation division of the group to lose $300m of turnover.
To combat the impact of this going into 2023, Donnelly said: “We have been increasing the number of hours and labour and activity in the factory. We’re clearly not going to get to the number that we were originally hoping to, based on some of these delays. But we’re going to keep ramping up that activity going through 2023.”
Meanwhile, a range of OEMs have acknowledged supply chain disruptions. At NBAA-BACE earlier this month, Éric Trappier, chairman and CEO, Dassault Aviation expressed concern about energy supplies and pricing, inflation and interest rates and the continuing effects of the global pandemic.