News
Production Cuts, Deferrals Hurt Boeing Profit
The AP (4/23, Lovering) reports Boeing "said Wednesday its first-quarter profit dropped by half, hurt by production cuts as airlines postpone deliveries of new planes. It also forecast lower earnings for the year and reduced aircraft prices." Jim McNerney, Boeing CEO, stated that the economic enviorment presented "unprecedented challanges" to the company. The company reported it will "slash spending" and "restructure parts of its business." While the earnings were less than predicted by analysts, J.B. Gorth of D.A. Davidson & Co. "said investors were encouraged by Boeing's indication that the 787 program remains on scheadule," and Boeing "lowered its outlook less than expected, considering the previously announced charges, lifting the company's shares in the early trading, he said". Boeing also announced that it's "backlog was worth $339 billion at the end of March, down 4 precent in the quarter. Lower expected prices and cancellations of 32 787s this year contributed to the decline."
The Wall Street Journal (4/23, B3, Cameron, Keeten), the Financial Times (4/23, Weitzman), the Seattle Post Intelligencer (4/23, James), the Chicago Tribune (4/23, Johnson), Bloomberg News (4/23 Ray), Rueters (4/23, Weitzman), MarketWatch (4/23, Hinton), Puget Sound Business Journal (4/22), Dow Jones Newswires(4/22, Keeton), and Air Transport Intelligence(4/23, Trimble) also cover the story.
