| HeraldNet - Snohomish County's online news source |
 TUESDAY, FEBRUARY 9, 2010 4:11 pm |
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Business 
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Boeing shares tumble 6 percent An aerospace analyst sees obstacles in the company's 787 program and labor negotiations -- and possible cuts in defense spending. EVERETT -- The Boeing Co. shares lost 6.3 percent on an analyst's concerns about the company's 787 program, upcoming labor negotiations and the defense business.Wall Street did not concur with Boeing officials' predictions Wednesday that the aerospace giant's financial outlook remains unchanged for 2008 and 2009. Boeing's shares dropped nearly $5 in the past two days after reporting lower than expected second-quarter earnings Wednesday. An analyst from Cowen & Co. downgraded Boeing's to "neutral" from "outperform," citing concerns about both Boeing's defense and commercial programs. Boeing's shares closed at $62.53 on Thursday, down $4.19 for the day. On Wednesday, Jim McNerney, Boeing's chief executive officer, assured investors that the company remained on track to meet its revenue estimates of between $67 billion and $68 billion this year and between $72 billion and $73 billion in 2009. "While we faced some challenges this quarter that affected our results, we remain confident in our outlook for the remainder of the year and 2009," he said. Boeing blamed its lower earnings on costs associated with its delayed 787 Dreamliner program and a poor mix of less-profitable airplane deliveries in the quarter. The Cowen analyst, Cai von Rumohr, sees a number of hurdles standing in Boeing's way of meeting its goals. The aerospace company could see a decline in its defense programs under a new presidential administration in 2009. Boeing predicts defense business revenues of $32 billion to $33 billion this year increasing to $33.5 billion to $34.5 billion in 2009. Should Republican candidate John McCain end up in the White House, he intends to reduce funding for programs such as Boeing's C-17 Globemaster air lifter, its airborne laser and its Future Combat System for the Army, according to a budget proposal McCain's staff gave to the Washington Post. Democrat Barack Obama's intention to scale down troops in Iraq also could lead to lower defense spending. The eventual ramp-up of production on Boeing's delayed 787 Dreamliner jet program also gave the Cowen analyst cause for concern. Boeing has pushed back the first delivery of its mostly composite 787 by 15 months to the third quarter of 2009. The company intends to increase production rapidly, despite initial troubles with its global suppliers and assembly problems. Boeing estimates it will deliver 25 Dreamliners by the end of next year and reach a rate of 10 deliveries each month by 2012. As Boeing works to put its 787 into the air for the first time late this year, the company heads into contract negotiations with its two leading unions in the Puget Sound region. That also gave Cowen's von Rumohr cause for concern. Both the Machinists and engineers union leaders will hold a conference call with Boeing investors later this month. Sticking points for the unions include pension, health care and wages. Boeing's stock has declined $45 from its high, one year ago today, of $107.83. Reporter Michelle Dunlop: 425-339-3454 or mdunlop@heraldnet.com. |
- A revolutionary 747
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- Everett rethinks boutique wineries
- A tidy lawn could be law in Lynnwood
- Snohomish County's bargain housing won't last
- Boeing's 747-8 takes off after weather delay
- Plan for I-5 closures this week
- A new bowling alley for Monroe?
- Lake Stevens man homeless after fire
- I-5 bridge joint may give you a jolt, but it isn't damaged
- Vote on school levies by Tuesday
(11) - A tidy lawn could be law in Lynnwood (10)
- Everett police officers cleared in 2008 shooting death (5)
- 1949 travel aid shows how few places blacks were welcome in Washington (4)
- I-5 bridge joint may give you a jolt, but it isn't damaged (4)
- Everett rethinks boutique wineries (4)
- Lynnwood sets height limit on grass: 8 inches (4)
- County archive software paid for but waiting for set-up (3)
- Three politicians who want Gregoire's job in 2012 (3)
- Toyota has powerful D.C. friends (3)
- Edmonds educator, famous announcer dies
- Mill Creek to appeal ruling on annexation
- Through the air, with the greatest of ease
- E-W thriving under new coach
- The path to citizenship
- EUUC puts on ‘Pants & Shoes’
- Wolfpack wins the ‘Battle'
- Lynnwood’s annexation plans OK’d
- Arlington's Cascade Valley Hospital celebrates expansion, national award and 100 years of service
- Business Licences Feb. 2010
- Technology tips for launching your own business
- Business Events Feb. 2010
- Tech Talk: No excuse today for going without a Web site
- State already raising fees and rates that restrict business growth
- Some legislators again targeting people’s initiative petition rights
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