Boeing Design Partners Getting Whacked (SPR, BEAV, HON, COL, LMIA, TIE, PCP)

Shares of Boeing (NYSE:BA) are getting hit hard after the jet-maker and aerospace giant finally came clean about the delay of the Dreamliners.  The DJIA component is down 3% on the day and it has pulled the price-weighted DJIA down a bit more with it.  We have covered this wondering about the first flight delays having a cascading effect, but if you look at Boeing’s aerospace partners on the Dreamliner you will see that they are all being hit (and some even harder than Boeing):

• Spirit Aerosystems (NYSE:SPR) is the ex-Boeing unit, which makes fuselage parts, shares down 4.8% to $36.50.
• BE Aerospace (NASDAQ:BEAV) has cabin and seating contracts with Boeing, shares down almost 4% at $43.30.
• Honeywell (NYSE:HON) has the cockpit award, shares down 2% at $60.00.
• Rockwell Collins (NYSE:COL) has information management pacts with Boeing, shares down 3.3% at $73.35.
• LMI Aerospace (NASDAQ:LMIA) has Boeing as principal customer for structural components, assemblies, and kits, shares down 3.5% at $27.65.
• Titanium Metals (NYSE:TIE) has long-term Boeing titanium/metals supply pacts; shares down 1.7% at $33.29.
• Precision Castparts (NYSE:PCP) manufactures aerospace structural castings, aerospace airfoil castings, industrial gas turbine castings, shares down 3.4% at $146.75.

There are other stocks that will be affected and impacted by this, but now the game is to figure out which of these companies will have to preannounce that the Dreamliner delay will hurt their earnings for one to two quarters out.

Jon C. Ogg
October 10, 2007

Jon Ogg produces the Special Situation Investing Newsletter and does not own securities in the companies he covers.