Boeing Falls On Problems About 787:

Boeing has been facing problems about its 787 dream liner since the past few days and the stock has taken a knock due to these problems. But, most of the engineers in the company say that there is nothing to worry about and this is just a short term problem. The stock rose nearly 3 percent after this clarification.

Mike Sinnett , an engineer at the Boeing company said at a news conference, “We\’re in the high 90 percents. We\’re right where the 777 program was at this stage. The prevalence of more significant issues, such as a battery fire, is in the same order of magnitude as previous programs. There\’s no metrics that are screaming at me that we\’ve got a problem.”

The engineer fully supported the plane and he said that this worry is a short term worry and there is nothing else to worry about. The plane just has some fire issues and that’s it, he says.

He also added, “I am 100 percent convinced that the airplane is safe to fly. The plane lacked cabin pressure to expel smoke because it was on the ground. In that scenario, we expect that there would be sufficient time to evacuate the plane safely.” That is the sole reason why they have grounded the plane and after this clarification, Boeing shares soared and were higher by 3 percent from yesterday’s close.

The company has been posting some excellent results from the past few years and that made the stock to trade in a clear up trend from the past few years. This grounding of one or two planes wouldn’t pose much problem to this big blue chip company.

But, some of the analysts think that the company will have to face further problems about the make of this air line and will have to re design it to make sure that they don’t face any further problems with this air plane.

Myles Walton and Amit Mehrotra, analysts at Deutsche Bank, said in a note to clients, “We\’d expect a similar timeline here. There\’s no doubt in my mind that on the engineering side they are doing the right thing as far as dealing with these issues. They need to really reach out strongly with information to the press corps to make sure they understand exactly what happened and exactly what they are doing about it.”

Some of the analysts are watching out for this quarter’s results and then, they will take a call according to the revenue and profit figure. Shares of this company have been falling from the past few days and they are down by around 1.5 percent in this week.

On Monday, the first dream liner has been grounded due to some issues and the stock tanked nearly 3 percent on that day. On Tuesday, the stock fluctuated hard on news about the clarification but covered its losses by the end of the day. All together, the stock is still trading in the negative territory for the week.

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Category: Finances
Keywords: Dow Jones, Boeing, Debt, Planes, ASX, Herbalife, ALcoa