Boeing takes $1 billion hit for jumbo jet program's delays

Seattle Times ^ | 09/06/09 | Staff

[AngelesCrestHighway]

Boeing will take a $1 billion charge to its third-quarter earnings to reflect growing production costs and slow demand for the new version of its 747 jumbo jet. The company said this morning that the 747-8 program is in a loss position, meaning Boeing currently projects it will lose money on the plane. Boeing said it now expects the first flight of the 747-8 Freighter to occur by early next year with the flight test program taking place in 2010. As recently as last month, the program's top executive had indicated he expected the first test plane to fly in November. First delivery of the 747-8 Freighter is now expected in the fourth quarter of 2010. The pre-tax hit to earnings amounts to 90 cents per share.

[NavyCanDo]

Conversation at tonight's dinner table will go something like this..... You remember that trip to Maui we were going to take next April, after we get our productivity merit pay? Don't go out and buy any new swim suit just yet.

[AngelesCrestHighway]

Working at Boeing turned into a roller coaster ride....

[Regulator]

Looks like the outsourcing management model kinda went to hell.

Gosh, all those UDub MBA's aren't as great as they thought they were. Oh Well.

[grey_whiskers]

How's that offshoring working out for you, Boeing?

About as well as using all Indians did for Sun Microsystems, eh?

Cheers!

[CodeToad]

Boeing has more managers than workers and they expect to be profitable???

[buzzer]

That 747-8 stuff ain’t outsourced. You’ve meant the 787 thing that got outsourced.

Boeing ain’t late on almost every project.They’re late on every project ! I’d guess it’ll be smarter to give the tanker contract to Northrop-Grumman and get some jobs here in the south.

[grey_whiskers]

Right on both counts, you are.

I slink corrected.

Cheers!