Italy’s Leonardo in wait-and-see mode over Boeing delays
2:05 pm Tuesday, May 07th, 2024
ROME (Reuters) – Italy’s Leonardo is waiting to see the impact of Boeing’s recent troubles on production, which could cost the Italian firm some 50 million euros in 2024, the group’s CEO said on Tuesday.
CEO Roberto Cingolani said there was still very little visibility on the issue. He added that the defence and aerospace group was ready to “take action” to mitigate any fallout but cautioned that it may have to push back the break-even of its aerostructures unit, which had been expected in 2025.
“Boeing is going through some problems, we are tuned to see the impact on (our) production, taking action to mitigate any fallouts,” Cingolani told a post-results analysts’ call.
The Italian group designs, develops and manufactures components for Boeing’s 787 Dreamliner airframe.
Cingolani said that in the worst-case scenario, a slowdown in Boeing orders could have a 50-million-euro ($53.81 million) impact on full-year results, but gave no further details.
He added that the state-controlled group had received very little information from its U.S. counterpart, which is currently overhauling its management as it grapples with a growing crisis following a mid-air panel blowout on a plane in January.
“Without precise information it is difficult to make a clear analysis. We need to talk to Boeing first, have numbers and understand what their plans are,” Cingolani said.
($1 = 0.9292 euros)
(Reporting by Giulia Segreti; Editing by Crispian Balmer)
