Published: Wednesday, October 22, 2008
Boeing’s profit drops due to strike, no new forecast
The Boeing Co.’s third quarter income dropped 38 percent due to the ongoing Machinists’ strike, the company said Wednesday.
Boeing declined to provide an updated earnings estimate for the four quarter, saying it would give its new forecast when the strike ends. Negotiators for Boeing and the Machinists are expected to meet with a federal mediator tomorrow. The strike began Sept. 6, shutting down Boeing’s jet production and bringing aircraft deliveries to a halt.
The aerospace giant reported its third quarter net income declined 38 percent to $695 million, sending its earnings per share down 33 percent to 96 cents.
"While the suspension of commercial airplane deliveries had a major impact on the
quarter, we effectively executed the remainder of our business and kept our focus on the strong balance sheet we have built over the past few years," said Jim McNerney, Boeing's chief executive. "That balance sheet, along with our broad-based, record $349 billion backlog, gives us exceptional flexibility for weathering an extended work stoppage and for adapting to circumstances that may arise from the global financial crisis and softening global economy."
Boeing's shares fell nearly 5 percent in early morning trading.
Boeing Commercial Airplanes third-quarter revenues were $6.9 billion, 16
percent below the same period last year. The company pointed to fewer deliveries due to the strike and supplier production challenges on customer-furnished galleys for certain wide-body airplanes. Boeing booked 149 gross orders during the quarter and 625 during the first nine months.
Boeing declined to provide an updated earnings estimate for the four quarter, saying it would give its new forecast when the strike ends. Negotiators for Boeing and the Machinists are expected to meet with a federal mediator tomorrow. The strike began Sept. 6, shutting down Boeing’s jet production and bringing aircraft deliveries to a halt.
The aerospace giant reported its third quarter net income declined 38 percent to $695 million, sending its earnings per share down 33 percent to 96 cents.
"While the suspension of commercial airplane deliveries had a major impact on the
quarter, we effectively executed the remainder of our business and kept our focus on the strong balance sheet we have built over the past few years," said Jim McNerney, Boeing's chief executive. "That balance sheet, along with our broad-based, record $349 billion backlog, gives us exceptional flexibility for weathering an extended work stoppage and for adapting to circumstances that may arise from the global financial crisis and softening global economy."
Boeing's shares fell nearly 5 percent in early morning trading.
Boeing Commercial Airplanes third-quarter revenues were $6.9 billion, 16
percent below the same period last year. The company pointed to fewer deliveries due to the strike and supplier production challenges on customer-furnished galleys for certain wide-body airplanes. Boeing booked 149 gross orders during the quarter and 625 during the first nine months.
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