Boeing annual profits drop 34%
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Boeing Co. has posted a full year 2008 net profit of US$2.7 billion – 34% down from the US$4.1 billion gains seen in 2007. The figures we hit by a fourth-quarter loss US$56 million, as revenues declined due to strikes at Boeing’s US manufacturing works.
Boeing’s Commercial Airplanes unit (BCA) recorded a Q4 2008 loss of US$968 million, compared to a US$973 million profit in the corresponding period of 2007. The machinists’ strike is estimated to have reduced Boeing’s Q4 earnings by US $1.2 billion.
BCA delivered approximately 105 fewer aircraft in 2008 due to the strike.
As announced in November, Boeing expects deliveries of the 747-8 Intercontinental passenger plane to begin in the Q2 of 2011. The 787 Dreamliner is expecting to make its first flight in Q2 2009, with deliveries to begin in Q1 2010.
Commenting on the results, Boeing’s Chairman, President, and CEO, Jim McNerney, said; “The progress we made in many areas of Boeing during 2008 was outweighed by the impact of the strike and our performance on some key development programs. Our imperative going forward is improving execution where it needs to be improved, maintaining strong performance across all our production programs, and preserving our financial strength to grow in these challenging economic times.”
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