Melrose says engine snags threaten Airbus, Boeing delivery goals
Melrose Industries Plc sees a stretched supply chain holding back even stronger growth at the UK aerospace firm and challenging plane manufacturers in their push to meet delivery targets. Peter Dilnot, who takes over as CEO in March, said that while the supply hitches are boosting after-market demand, they’re limiting planemakers’ ability to build jets. “The world’s got back onto aircraft much faster than anyone expected,” Dilnot said in an interview after Melrose reported earnings on Thursday. “Against that backdrop, you’ve got supply chain issues where frankly the airframers can’t keep up with the demand. You’ve got a combination of a gap in supply, increasing demand and the industry having supply-chain issues.” The biggest supply snags concern engines, and particularly forgings and castings, said Dilnot, who’s currently COO. Melrose became a pure aerospace company with the spinoff of its auto division earlier this year and a pivot away from a model of acquiring other companies. Supply chain hiccups are plaguing both major aircraft manufacturers, with Boeing Co. battling quality lapses at supplier Spirit AeroSystems Holdings Inc. while Airbus SE contends with potentially flawed components on Pratt & Whitney engines powering its A320neo aircraft. Melrose joins other industry participant to highlight the challenge facing the planemakers and their full-year delivery targets. Airbus said last week that it’s confident of meeting its delivery target for 2023, and plans to raise output next year. It’s targeting 720 deliveries this year, and handovers stood at 559 at the end of October. Boeing recently lowered its projection and now plans to ship at least 375 of its 737 narrowbodies in 2023. It was 70 shy of the target at the end of last month. Whether or not the manufacturers meet those goals shouldn’t affect Melrose’s own results, Dilnot said, as parts like wings are attached well before an aircraft is shipped. Melrose raised its guidance Thursday, saying it expects full-year revenue of GBP3.3 to 3.4b.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2023-11-17/general/melrose-says-engine-snags-threaten-airbus-boeing-delivery-goals
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Melrose says engine snags threaten Airbus, Boeing delivery goals
Melrose Industries Plc sees a stretched supply chain holding back even stronger growth at the UK aerospace firm and challenging plane manufacturers in their push to meet delivery targets. Peter Dilnot, who takes over as CEO in March, said that while the supply hitches are boosting after-market demand, they’re limiting planemakers’ ability to build jets. “The world’s got back onto aircraft much faster than anyone expected,” Dilnot said in an interview after Melrose reported earnings on Thursday. “Against that backdrop, you’ve got supply chain issues where frankly the airframers can’t keep up with the demand. You’ve got a combination of a gap in supply, increasing demand and the industry having supply-chain issues.” The biggest supply snags concern engines, and particularly forgings and castings, said Dilnot, who’s currently COO. Melrose became a pure aerospace company with the spinoff of its auto division earlier this year and a pivot away from a model of acquiring other companies. Supply chain hiccups are plaguing both major aircraft manufacturers, with Boeing Co. battling quality lapses at supplier Spirit AeroSystems Holdings Inc. while Airbus SE contends with potentially flawed components on Pratt & Whitney engines powering its A320neo aircraft. Melrose joins other industry participant to highlight the challenge facing the planemakers and their full-year delivery targets. Airbus said last week that it’s confident of meeting its delivery target for 2023, and plans to raise output next year. It’s targeting 720 deliveries this year, and handovers stood at 559 at the end of October. Boeing recently lowered its projection and now plans to ship at least 375 of its 737 narrowbodies in 2023. It was 70 shy of the target at the end of last month. Whether or not the manufacturers meet those goals shouldn’t affect Melrose’s own results, Dilnot said, as parts like wings are attached well before an aircraft is shipped. Melrose raised its guidance Thursday, saying it expects full-year revenue of GBP3.3 to 3.4b.<br/>
