What's Going On With Boeing Stock Monday?

Boeing Co BA shares are trading lower Monday after the company reportedly discovered new quality defects in its 737 Max airplanes.

What To Know: Boeing plans to do more work on about 50 of its 737 Max planes before they are delivered after supplier Spirit AeroSystems Holdings SPR found a couple of mis-drilled holes in fuselages, per Reuters.

Although the findings could delay some near-term deliveries, they are not expected to cause any further groundings. Boeing reportedly confirmed the developments to Reuters. Boeing Commercial Airplanes CEO Stan Deal also wrote a letter to employees.

“This past Thursday, a supplier notified us of a non-conformance in some 737 fuselages. I want to thank an employee at the supplier who flagged to his manager that two holes may not have been drilled exactly to our requirements,” Deal said in a letter to staff.

“While this potential condition is not an immediate flight safety issue and all 737s can continue operating safely, we currently believe we will have to perform rework on about 50 undelivered airplanes,” he added.

This is the latest effort from Boeing to tighten up its operations since a panel flew off a 737 aircraft during a commercial flight in early January, forcing an airline to make an emergency landing, which ultimately caused the FAA to ground 171 Boeing planes.

Boeing shares got a lift last week after the company reported strong quarterly results. Boeing withheld financial guidance for the year, vowing to focus on safety and quality operations.

“While we report our financial results today, our full focus is on taking comprehensive actions to strengthen quality at Boeing, including listening to input from our 737 employees that do this work every day,” Boeing president and CEO Dave Calhoun said at the time.

Related Link: Boeing 737 MAX Deliveries May Be Delayed Due To Newly Discovered Quality Defects: Report

BA Price Action: Boeing shares were down 2% at $205.20 at the time of publication, according to Benzinga Pro.

Photo: courtesy of Boeing.