"You've got to accentuate the positive
Eliminate the negative
And latch on to the affirmative
Don't mess with Mister In-Between."
-- "Accentuate the Positive," Johnny Mercer and the Pied Pipers, 1944
You've heard about Boeing's new 737 variant, right? The one it designed for AMR
As a result, Boeing confirmed last week that it's unlikely to make much progress working down plane backlogs in the immediate future. While production rate increases have been approved, Boeing won't max out production of the classic 737, for example, until 2014 (by which time it expects to be churning out 42 planes per month). Meanwhile, the company expects to be selling planes faster than it can build them for at least the next two years.
This may not please customers impatiently awaiting their planes, of course, but as problems go, it's a nice one for Boeing to have.
Ac-cen-tu-ate the positive
Boeing also pointed out last week that, whatever problems it may be having keeping up with demand, at least it doesn't have to worry about kinks farther up the supply chain. According to Boeing Commercial Airplanes President Jim Albaugh, parts makers that include Spirit AeroSystems
In other words, assuming Boeing can build it ("it" being the planes), the parts will come.
Care to place a wager on when Boeing will announce its next production ramp-up to help keep pace with all these new orders? Add the stock to your Watchlist, and we'll keep you updated on all the most important developments.
Fool contributor Rich Smith does not own (or short) shares of any company named above. Motley Fool newsletter services have recommended buying shares of Spirit AeroSystems Holdings. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.