Boeing says Ukrainian tensions are creating “bad weather” for business


Boeing said Monday that ongoing tensions between the United States and Russia over Ukraine could create “bad weather” for its business and disrupt supply chains.

Boeing relies heavily on Russia’s VSMPO-AVISMA to supply titanium, a lightweight metal widely used in airplane manufacturing.

Russia has mobilized tens of thousands of troops near the Ukrainian border, urging demand for a new security agreement in Europe and threatening barrage of sanctions if US and European officials invade.

Airplane manufacturers said they would monitor and evaluate sanctions and restrictions that could be imposed by the US government and responses from Russia that could directly affect a company’s supply chain, business partners, or customers.

On Monday, US President Joe Biden warned of “quick and serious consequences” from the United States and its allies if Moscow attacked Ukraine.

Western aerospace companies are struggling to increase their titanium inventories and strengthen their supply chains in case metal enters a potential trade war between Russia and the West.

Boeing CEO David Calhoun said last week that the company “has been protected for quite some time, but not permanently.”

Separately, the Chicago-based company said it expects negative operating cash flow in the coming quarters until deliveries begin to return to historical levels.

The company also flagged that additional funding may need to be considered if the pace and scope of recovery deteriorates.

Reuters

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