Hexcel scales back production in wake of Boeing strike

The strike by Boeing machinists has frozen work and forced Hexcel to scale back production of composite materials for the aircraft manufacturer.

Related Suppliers

Hexcel Corp. (Stamford, Conn.) announced on Sept. 15 that in response to the strike by the International Association of Machinists (IAM) against The Boeing Co. (Seattle, Wash.), Hexcel has reduced production volumes on certain aero structures and composite materials produced in its U.S. facilities and is withdrawing earnings guidance for the year.

David E. Berges, Chairman and CEO of Hexcel, said, "Start-up costs for new facilities and inflationary pressures continue to present challenges, but the added disruption caused by the strike at Boeing leaves us little choice but to withdraw our 2008 earnings guidance. We continue to believe the long-term outlook for composite materials in aerospace and wind is compelling. We will provide an update on our short term outlook when we announce third quarter results."