Business

<< Previous   of   Next >>   ADVERTISEMENT   Related Stories • Boeing has 'great confidence' 787 will fly on time 2/6/08   CONTACT THE HERALD Mike Benbow, Business Editor benbow@heraldnet.com   Published: Wednesday, February 6, 2008 787 delays cost dearly, supplier says Associated Press HARTFORD, Conn. -- Production delays for the Boeing Co.'s 787 are putting a strain on cash flow at a United Technologies Corp. division that spent $200 million last year on research and development for the new widebody jet. Boeing announced last month that the inaugural flight of the Everett-built 787 will be delayed up to another three months, pushing delivery of the first plane into early 2009. It's the plane's third delay. "We have started negotiations with Boeing, talking about the fact that this latest delay especially is going to cause us heartburn from a cash flow" perspective, Greg Hayes, United Technologies' vice president of finance and accounting, said at an annual aerospace and defense conference in New York. "It's been a difficult process because of delays in the aircraft. Obviously, we were disappointed in the first delay last year and the second delay that was just announced," he said. United Technologies' Hamilton Sundstrand division spent nearly $200 million for the 787 in 2007, about half of all research and development spending at Hamilton Sundstrand, Hayes said. The division is contributing the airline's auxiliary power system, cabin temperature management and control, pressurization control, heating and cooling and other systems. "So there's pressure on R & D even this year," he said Suppliers of Hartford-based United Technologies are also feeling the financial impact, he said. Mary Hanson, a spokeswoman for Boeing's 787 program, would not comment on discussions Boeing has had with other businesses. Boeing's new schedule calls for test flights to begin by late June.

1. Good grief! 2. Swine flu lingers, making traditional flu season unpredictable 3. Two vie to serve as Snohomish County prosecutor 4. Last hurrah for Huskies’ Locker? 5. Koster for Congress? He’s still undecided 6. Here’s how home foreclosure sales really work 7. A store credit card can save you cash, but is it worth it? 8. New site sought for Snohomish pool project 9. Families get an early gift: free Christmas trees 10. Prep Roundup: Lake Stevens wins two wrestling meets 2 - Top 10 Stories Most Talked about 3 - Top 10 Stories Most Emailed

• Wildcats fall to familar foe in semis • ‘Nutcracker' times three • Road warrior • Mavericks reloading • Holiday Lightings & Santa Sightings • Cities prepare for winter blast repeat • Wolfpack duo takes last shot at state tourney • This Weekend in Your Town • Tips for the stormy season • Boeing will build, flight test and deliver 787s in South Carolina to spe ... • Snohomish County EDC promoting job growth in key industry clusters • $4 million grant to advance brain tumor research has Everett links • Providence medical center construction tops off its 12-story steel frame ... • Tulalip affordable housing project to be financed by KeyBank, Raymond Ja ... • Arlington's Lak of Ink has a growing following for Luke Kooyman's creati ... • Bank of the Northwest formed • Cascade Bank earns $1.6 million