Responding to what it calls “significant deterioration in the business environment”, Boeing will cut 777 production rates by nearly 30% by the middle of 2010 and will delay planned increases on the 747-8 and 767 production lines.
Key points:
- 777 production cut from 7/month to 5/month – 29% cut by June 2010.
- 767 and 747-8 rate increases will be delayed.
- 737 unaffected by current cuts.
The cuts are due to:
- “delivery deferrals requested by customers in response to
unprecedented declines in global passenger and air-cargo.”
Overall impact means:
- Boeing overall 1Q09 earnings will be reduced by 38 cents per share. 31 cents of it is attributable to the 747 program being in a loss position.
- The remaining 7 cents comes from lower margins on deliveries on other commercial programs.
- No cancellations on 747, 777 or 767. A Boeing spokesperson added that there were no 737 cancellations as well.
Photo Credit Boeing
This post was originally published to the internet between 2007 and 2012. Links, images, and embedded media from that era may no longer function as intended.
This post originally appeared at Flightglobal.com from 2007 to 2012.