Published: Friday, January 9, 2009
Boeing jet sales drop in 2008
The company will likely trail Airbus in 2008 sales and deliveries.
EVERETT -- After posting record sales in 2007, the Boeing Co. saw its order book decline roughly 50 percent last year as demand for aircraft cooled.
The year also presented Boeing with a 15 percent drop in aircraft deliveries because of parts shortages and a 57-day strike by its Machinists. As a result, Boeing will fall behind rival Airbus in both deliveries and orders in 2008.
"While we clearly faced obstacles, 2008 also was a time of accomplishment at Commercial Airplanes," said Scott Carson, president of the division, in a statement Thursday.
Carson noted that the 2008 order total of 662 jet orders was Boeing's eighth highest on record. Boeing logged its highest order year in 2007 with 1,413 orders.
Rival Airbus will update its yearly totals next week. However, the European jet maker had won 756 net requests as of the end of November. Airbus fell behind Boeing in orders the past few years although both aerospace companies have taken in 1,000 orders on average the past three years.
Boeing's backlog of unfilled orders stands at more than 3,700.
"With a balanced base of customers from all regions of the world, from airlines with varied business models, and with strong orders across our product line, we are now focused on executing this strong backlog position," Carson said.
Boeing's order book in 2008 was slanted heavily in favor of its single-aisle 737. With 484 orders, the Renton-built 737 represented roughly 73 percent of the company's requests last year.
Boeing added 93 net orders for its fuel-efficient 787 and 54 for its 777. The "mighty" 767 has benefitted from delays to the Dreamliner, picking up 28 orders in 2008. Boeing's 747 jumbo jet added three requests.
As expected, Boeing delivered 375 planes last year as compared with 441 in 2007. A labor dispute last fall shut down the company's jet factories for nearly two months. Production also was interrupted because of shortages of galleys. Boeing additionally had to deal with faulty parts from a supplier, which affected all of its commercial jets except the 787.
Boeing delivered 41 aircraft in December after handing over just four jets in November. But the company fell far short of its goal of delivering 500 aircraft this year, which would have included deliveries of 25 Dreamliners. Boeing has delayed initial deliveries of its 787 to the first quarter of 2010.
Cowen & Co. analyst Cai von Rumohr said Boeing's December numbers were an encouraging improvement over those for November, although he had anticipated the rebound.
However, he remained cautious about the company's performance in 2009.
"Given the tough economy, stretchouts-cancellations remain an issue ... and cash flow is apt to be under pressure."
Airbus also will lead Boeing in deliveries. The company had delivered 437 aircraft at the end of November.
Boeing shares rose 3 cents to close at $44.79 on Thursday.
The Associated Press contributed to this report.
Reporter Michelle Dunlop: 425-339-3454 or mdunlop@heraldnet.com.
The year also presented Boeing with a 15 percent drop in aircraft deliveries because of parts shortages and a 57-day strike by its Machinists. As a result, Boeing will fall behind rival Airbus in both deliveries and orders in 2008.
"While we clearly faced obstacles, 2008 also was a time of accomplishment at Commercial Airplanes," said Scott Carson, president of the division, in a statement Thursday.
Carson noted that the 2008 order total of 662 jet orders was Boeing's eighth highest on record. Boeing logged its highest order year in 2007 with 1,413 orders.
Rival Airbus will update its yearly totals next week. However, the European jet maker had won 756 net requests as of the end of November. Airbus fell behind Boeing in orders the past few years although both aerospace companies have taken in 1,000 orders on average the past three years.
Boeing's backlog of unfilled orders stands at more than 3,700.
"With a balanced base of customers from all regions of the world, from airlines with varied business models, and with strong orders across our product line, we are now focused on executing this strong backlog position," Carson said.
Boeing's order book in 2008 was slanted heavily in favor of its single-aisle 737. With 484 orders, the Renton-built 737 represented roughly 73 percent of the company's requests last year.
Boeing added 93 net orders for its fuel-efficient 787 and 54 for its 777. The "mighty" 767 has benefitted from delays to the Dreamliner, picking up 28 orders in 2008. Boeing's 747 jumbo jet added three requests.
As expected, Boeing delivered 375 planes last year as compared with 441 in 2007. A labor dispute last fall shut down the company's jet factories for nearly two months. Production also was interrupted because of shortages of galleys. Boeing additionally had to deal with faulty parts from a supplier, which affected all of its commercial jets except the 787.
Boeing delivered 41 aircraft in December after handing over just four jets in November. But the company fell far short of its goal of delivering 500 aircraft this year, which would have included deliveries of 25 Dreamliners. Boeing has delayed initial deliveries of its 787 to the first quarter of 2010.
Cowen & Co. analyst Cai von Rumohr said Boeing's December numbers were an encouraging improvement over those for November, although he had anticipated the rebound.
However, he remained cautious about the company's performance in 2009.
"Given the tough economy, stretchouts-cancellations remain an issue ... and cash flow is apt to be under pressure."
Airbus also will lead Boeing in deliveries. The company had delivered 437 aircraft at the end of November.
Boeing shares rose 3 cents to close at $44.79 on Thursday.
The Associated Press contributed to this report.
Reporter Michelle Dunlop: 425-339-3454 or mdunlop@heraldnet.com.
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