Aerospace and defense giant General Dynamics reported its first quarter where an airplane delivery was missed as a result of supply chain issues, noting late shipments from supplier Honeywell.
General Dynamics received 21 out of 24 expected deliveries during the quarter, CEO Phebe Novakovic said during a Q1 earnings call. The CEO specified that two aircraft did not deliver due to late engine deliveries, while the one remaining large-cabin aircraft was plagued by registration delays.
Novakovic told analysts that the shortage of parts “especially from Honeywell” made production less efficient.
Due to the delay in parts, General Dynamics is unable to increase its build rate until supply is more predictable, according to Novakovic. The company anticipates the problem will improve by the third quarter, but noted that issues with two large suppliers “will take a little longer to resolve.”
Other aerospace manufacturers have also reported delivery issues from suppliers. An analyst asked during an April 27 earnings call whether delays at Bombardier were also due to disruptions from Honeywell, though the company declined to name suppliers involved.
Honeywell CEO Darius Adamczyk bluntly told analysts on a Q1 earnings call they are not the problem.
“In terms of the bottlenecks, it’s not Honeywell," said Adamcyzk, noting that it is seeing issues within its own suppliers.
“That’s our job to manage,” the CEO told analysts. “And frankly, the earnings call is not the right place to actually have those kinds of discussions.”