Boeing Machinists’ Strike Holds Up Delivery of Jets

Boeing Co. will be unable to deliver more than two dozen airplanes to customers this month as scheduled because of the continuing strike by its machinists union, the company’s chief financial officer said Wednesday.

James Bell told analysts that the 25 to 30 scheduled September deliveries “obviously won’t be met and made.” The shortfall could be made up later if the 13-day-old strike is settled soon, although “that opportunity diminishes over time as the strike goes on,” he said.

The manufacturer has not disclosed any estimates for potential losses from the walkout.

More than 18,000 assembly workers went on strike Sept. 2 at the Chicago-based company’s commercial airplane plants in the Seattle area; Gresham, Ore.; and Wichita, Kan. No talks have since been held or are scheduled, and Bell said the two sides remained about $1 billion apart on terms for a three-year contract.

“That’s pretty significant, considering the fact that today their contract makes them the highest-paid machinists in the industry,” Bell said at a Morgan Stanley conference in Phoenix.

“Clearly, our offer on the table continues to allow them to enjoy that position, because that’s where we want them to be.... We’ll just have to work our way through trying to close that gap,” Bell added.

The machinists have called Boeing’s offer “insulting” and said it fell woefully short on issues ranging from healthcare costs to pensions.

Analyst Paul Nisbet with JSA Research said any delay in delivering airplanes would mean a deferral of revenue and profit. But he said it was highly unlikely customers would immediately cancel orders and go with rival Airbus. That’s because it can take years to receive an airplane after it is ordered.

Boeing shares fell $1.22 to $64.18.