BA Boeing Co

By Michael Dabaie

Boeing Co. said Tuesday that it has identified additional rework that will be required on undelivered 787s, and the 787 production rate will temporarily be lower than five per month.

Shares fell 2.2% premarket to $233.01 on the New York Stock Exchange.

Boeing said it has been talking with the Federal Aviation Administration on verification methodology for 787 fuselages and conducting associated inspections and rework. As part this, the company said it identified additional rework needed on undelivered 787s.

Boeing said it is reprioritizing production resources for a few weeks to support the inspection and rework. As that work is performed, the 787 production rate will fall below five per month before gradually returning to that rate. Boeing said it now expects to deliver fewer than half of the 787s currently in inventory this year.

The Wall Street Journal, citing people familiar with the matter, reported Monday that a new production problem has surfaced with Boeing's 787 Dreamliner, likely further delaying deliveries.

"We will continue to take the necessary time to ensure Boeing airplanes meet the highest quality prior to delivery. Across the enterprise, our teams remain focused on safety and integrity as we drive stability, first-time quality and productivity in our operations," the company said in a release Tuesday.

Boeing said Tuesday its 787 deliveries in the second quarter were 12, with 14 year to date. Among its major commercial airplane programs, the company delivered 79 in the quarter and 156 in the year-to-date period.

Write to Michael Dabaie at michael.dabaie@wsj.com

(END) Dow Jones Newswires

July 13, 2021 08:15 ET (12:15 GMT)

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