Boeing finds new set of problems on 737s, further slowing deliveries – report

A new electrical issue on Boeing’s (NYSE:BA) 737s will take time to correct, which “could further impact the timing of deliveries, despite uncertainty over the number of aircraft affected by the problem,” Bank of America analyst Ronald Epstein says, Fortune reported Tuesday.

Boeing (BA) reportedly was forced to slow production at its 737 factory in Renton, Washington, last week due to a problem with junction boxes, which are used to route electrical cables through planes.

Fortune said Boeing (BA) confirmed in a statement that the company identified a “non-conforming component” on three already delivered airplanes, leading to their grounding.

“Per our standard process, we will perform any necessary rework on airplanes in our production system to ensure they meet all requirements prior to delivery,” Boeing (BA) said, noting that production has not stopped at the Renton plant.

BofA’s Epstein nevertheless maintained his Neutral rating and $200 price target on Boeing (BA) shares, according to Fortune.