CHICAGO, Wed Nov 7, 2012 – Boeing Co. announced a major restructuring of its defense division on Wednesday that will cut 30 percent of management jobs from 2010 levels, close facilities in California and consolidate several business units to cut costs.
The company told employees about the changes ahead of the planned announcement set for later Wednesday, a copy of which was reviewed by Reuters.
Boeing, the Pentagon’s second-largest supplier, said the changes were the latest step in an affordability drive that has already reduced the company’s costs by $2.2 billion since 2010, according to the document.
CHICAGO, Wed Oct 24, 2012 – Boeing Co. posted stronger-than-expected results for the third quarter on Wednesday and raised its forecast for the full year, as its defense business improved and commercial aircraft deliveries surged.
The company said it earned $1.0 billion, or $1.35 a share, compared with $1.1 billion, $1.46 a share, a year ago. Revenue rose to $20.0 billion from $17.7 billion.
Analysts surveyed by Thomson Reuters I/B/E/S had expected Boeing to post earnings per share of $1.13 for the quarter that ended Sept. 30.
“They were obviously strong in defense, which is certainly good to see,” said Ken Herbert, an analyst at Imperial Capital LLC.
Defense revenue fell 4 percent $7.8 billion, compared with a year ago, but margins widened to 10.5 percent from 10 percent.
Those shifts reflected contraction of defense spending – a growing trend as the United States and Europe cut budgets – but also showed Boeing’s ability to be “very aggressive” in cutting costs, Herbert said. “They’re ahead of the curve compared with their peers.”
CHICAGO, Wed Jul 25, 2012 – Boeing Co. reported an increase in second-quarter profit on Wednesday as rising airplane deliveries offset higher pension costs.
The plane maker and defense contractor reported a profit of $967 million, or $1.27 per share, compared with $941 million, or $1.25 per share, in the year-ago quarter.
Sales rose 21 percent to $20 billion, boosted by commercial aircraft sales.
CHICAGO, Thu Jul 12, 2012 – United Continental Holdings Inc. said it will buy 100 Boeing 737 MAX 9 aircraft and fifty 737-900ER planes in a deal that Boeing valued at $14.7 billion at list prices.
United Continental, the holding company that owns United Airlines, the world’s largest carrier, said it will begin taking delivery of the 737 MAX 9 planes in 2018.
The 100 MAX aircraft order, first reported by Reuters in May, will allow United to replace older, less-efficient aircraft to reduce fuel and operating costs, the company said in a statement.
Boeing said the combined order will allow it to exceed 10,000 orders overall for the 737 family. The 737 MAX is a new-engine variant of Boeing’s Next-Generation 737.
The additional order for fifty 737s, which will be delivered from late 2013, reflects efforts by both Airbus and Boeing to maintain production of their current products and ensure a smooth transition to newer models from 2017.
United Continental said the 737-900ER models will replace older, less-efficient Boeing 757-200 aircraft flown domestically.
The new models are expected to burn up to 15 percent less fuel per seat than the aircraft they replace, the company said.
The new set of orders takes United’s order book — anticipated through 2022 — to 272, including 50 Boeing 787 Dreamliners, the airline said.
United Continental will be the first North American carrier to fly the much-awaited light-weight, carbon-composite widebody Dreamliner.
CHICAGO, Thu Jul 5, 2012 – Boeing Co. said on Thursday it delivered 150 commercial planes in the second quarter, up from 118 in the same period a year ago, led by an increase for the 737 model.
The world’s second-largest plane-maker after EADS unit Airbus reported deliveries of 109 narrowbody 737 Next Generation planes, up from 94 delivered in the second quarter of 2011. So far in 2012, Boeing has delivered 208 737s.
Boeing also said it delivered 22 777 planes in the second quarter, as well as seven 747 jumbo jets, six 767s and six of the carbon-composite 787. Year to date, 287 Boeing commercial planes have been delivered.
Boeing gets paid for airplanes at delivery.
Deliveries of defense and space products came to 36 for the second quarter, Boeing added.
Boeing shares were up 0.2 percent to $74.39 in morning trading.
CHICAGO, Mon Jun 11, 2012 – Boeing Co. expects to sell 1,000 commercial aircraft in the calendar year 2012, including the 737 and wide-body models, the head of the company’s commercial division told Reuters on Monday.
“I think we are going to get there, there’s a lot of demand for big aircraft out there,” Boeing Commercial Airplanes CEO Jim Albaugh said.
He was speaking on the sidelines of an IATA airlines meeting in Beijing.
CHICAGO, Tue May 15, 2012 – Global airlines are fundamentally healthy, and demand for new airplanes is growing, Boeing Co. CEO Jim McNerney said on Tuesday.
The planemaker is raking in orders from airlines around the world as they expand their fleets or upgrade to more fuel-efficient jets.
Speaking on a webcast of the company’s annual investor conference, McNerney said Boeing was on track to build 10 787 Dreamliners per month by the end of next year.
Some experts doubt the company can hit its production rate target for the light-weight, carbon-composite airplane that came to market last year after three years of development delays.
Boeing, the world’s largest aerospace and defense company, turned in a stronger-than-expected first-quarter profit last month as it pulled in orders while accelerating production on all its commercial airplane programs.
CHICAGO, Wed Apr 25, 2012 – Boeing Co., the world’s largest aerospace and defense company, posted a higher quarterly net profit on Wednesday, helped by an increase in commercial airplane deliveries, and raised its earnings forecast for the year.
The company said its first-quarter net profit was $923 million, or $1.22 per share, compared with $586 million, or 78 cents per share, a year earlier.
The company, which competes with EADS unit Airbus for orders, said revenue rose 30 percent to $19.4 billion, topping expectations for $18.4 billion. The company said its order backlog at the end of the quarter was $380 billion, up from $356 billion at the beginning of the year.
The company increased its profit forecast for 2012 to a range of $4.15 per share to $4.35 per share. The previous upper end of the range had been $4.25 per share. The company reaffirmed its 2012 revenue outlook, which is in a range of $78 billion to $80 billion.
CHICAGO, Wed Mar 14, 2012 − The head of Boeing Co’s. Commercial Airplanes unit reaffirmed on Wednesday that the plane-maker can correct a glitch on the 787 Dreamliner and meet its delivery goals for the plane this year.
The light-weight, carbon-composite airplane is already three years behind its development schedule. In February, Boeing reported signs of “delamination” on the rear fuselage of some 787s, calling into question the company’s plan to build 10 of the airplanes per month by the end of next year.
“I see nothing to date that leads me to believe that we won’t deliver all the 787s we have in our plan by the end of the year,” Jim Albaugh told a JP Morgan Aviation, Transportation and Defense conference that was broadcast over the Internet.
Delamination occurs when stress causes layered composite materials to separate. The issue was the result of a manufacturing error that occurred at a Boeing plant in South Carolina.
Boeing has said that the problem may affect the first 55 Dreamliners built and that it will take 10 to 14 days per plane to repair. Boeing has said the repair may affect deliveries in the first part of 2012, but not in the longer term.
“Between the 787 and the 747, we should deliver between 70 and 85 of those airplanes this year. It’s split pretty evenly between the two airplanes,” Albaugh said. The 747 is the largest commercial airplane Boeing makes.
Many experts doubt that Boeing can hit the 10-per-month rate target for Dreamliners. The current rate is 3.5 per month.
Despite the delays, the Dreamliner is a hit among customers, who have ordered about 870. Boeing delivered the first 787 last year. The company assembles 787s at plants in Washington and South Carolina. Boeing expects the first 787 assembled in South Carolina to be completed next month.
WASHINGTON , Mon Mar 12, 2012 – The World Trade Organization has ruled that aircraft manufacturer Boeing received $3 billion to $4 billion in illegal subsidies in the form of federal research grants and local tax breaks, the top trade official said on Monday.
But Trade Representative Ron Kirk called the decision “a tremendous victory” for the United States because he said a separate WTO panel ruled last year that European governments provided $18 billion in subsidized funding for Airbus.
“It is now clear that European subsidies to Airbus are far larger – by multiples – and far more distortive than anything that the United States does for Boeing,” Kirk said in a statement.
“The United States is ready to address all of the WTO findings, and we expect Europe to do the same. Airbus is a mature, highly capable company with ready access to commercial financing. It doesn’t need the launch aid that European governments are continuing to provide,” he added.
The WTO appellate body ruling on Monday faulted the United States for research funded by NASA and the Department of Defense that benefited Boeing and for tax breaks granted by the state of Washington and city of Wichita, Kansas.
The United States will have six months to comply with the ruling, once it is formally adopted this month, Kirk said.