In this Feb. 17 photo, Boeing CEO Dennis Muilenburg talks with President Donald Trump at Charleston International Airport in North Charleston, South Carolina. (AP Photo / Susan Walsh)

In this Feb. 17 photo, Boeing CEO Dennis Muilenburg talks with President Donald Trump at Charleston International Airport in North Charleston, South Carolina. (AP Photo / Susan Walsh)

Muilenburg: Boeing remains on track to keep boosting profits

EVERETT — The cash is going to keep coming.

That was Boeing CEO and Chairman Dennis Muilenburg’s key message at a Wall Street conference Thursday morning.

The aerospace giant is making steady progress on pushing its profit margin to historic highs, a goal set by Muilenburg after taking over the company’s helm in 2016. The target is to hit about 15 percent operating profit by 2020 — essentially twice its average over the past 10 years.

“We’re very committed to that target,” he told the audience at the Bernstein Strategic Decisions Conference in New York.

Boeing expects to bring in less revenue by the end of its second quarter, which covers April, May and June. The decline is due to delaying deliveries of some new airplanes, chiefly Boeing’s KC-46, a new aerial refueling tanker for the Air Force.

While tankers are rolling out of the Everett plant where they are assembled, the company does not expect to start handing over the planes to the military until late this year.

Over the next few years, ramping up production of the company’s single-aisle 737 and making more of higher-priced 787s are expected to play a big role in boosting revenue and profit, Muilenburg said.

Boeing will sell more and more of the its 787-9s and 787-10s, and less of the smallest Dreamliner, the 787-8. The larger -9 and -10 versions are bigger money makers for the company.

The company is still testing the 787-10. The third production aircraft is already being manufactured, he said.

Boeing continues talking with customers about creating a bigger version of its popular single-aisle 737 — a MAX 10 to compete with rival Airbus’ A321neo. A MAX 10 “would basically be the same size of an A321 with “about 5 percent lower operating cost per seat” due to weight savings,” Muilenburg said.

If Boeing follows through on the MAX 10, it could make up as much as 25 percent of 737 sales and would first deliver to an airline probably in 2020, he said.

Boeing sees an upside beyond its commercial airplanes division, which is based in Washington.

Defense and satellite sales are expected to increase, Muilenburg said.

The company even has seen renewed interest in the two fighter jets it produces — the F-15 and F/A-18. Just a couple years ago, many industry watchers expected the F-15 line to close in the next few years.

Since then, Boeing has seen spurred interest from foreign customers that could have the F-15 line “extended in a strong way well into the next decade,” he said.

And greater demand for the F/A-18 from the U.S. and allied militaries means “that line could very well be strong and healthy through the next decade,” Muilenburg said.

This story has been modified to clarify the Boeing Company’s expected lowered operating costs resulting from improvements to the MAX 10.

Dan Catchpole: 425-339-3454;; Twitter: @dcatchpole.

Talk to us

More in Herald Business Journal

Striking Starbucks employees talk to a woman who wanted to use the drive-thru but was turned away due to the strike on Wednesday, June 15, 2022, on Broadway in Everett, Washington. Workers at the 37th and Broadway store spent their morning picketing because a fellow employee had been fired the previous day in what the workers believe is an act of union busting. (Ryan Berry / The Herald)
Everett Starbucks workers go on strike after employee fired

The employee and her fellow union members claim she was fired for supporting the union. Starbucks denies it.

Property values soar 32% in Snohomish County due to hot housing market

Assessed values are up all across the county since last year. The impact on tax bills won’t be known for a few months.

Port of Everett hosting annual open house after pandemic hiatus

Also, Rustic Cork Wine Bar plans to open a second shop at Fisherman’s Harbor — the latest addition to the port’s “wine walk.”

Holly Burkett-Pohland, the owner of Burkett’s Home & Gift, outside of her new store front on Friday, June 17, 2022 in Everett, Washington. (Olivia Vanni / The Herald)
New Everett gift store debuts in former J. Matheson space

For years, Holly Burkett-Pohland wanted to expand a business founded by her mother in 1978.

A Kenmore Air Cessna 208 Caravan. (Kenmore Air) 20220613
Kenmore Air to start daily flights from Paine Field to San Juans

Service begins July 14. Flights to Friday Harbor and Orcas Island airports take about 25 minutes.

Seattle Space Needle sues coffee chain over use of logo

The logo for Local Coffee Spot features a mug of hot coffee whose rising steam bears striking resemblance to the iconic tower.

Logo for news use, for stories regarding Washington state government — Olympia, the Legislature and state agencies. No caption necessary. 20220331
Foes of state’s capital gains tax drop plans for initiative

I-1929 sponsors say they are confident a lawsuit challenging the legality of the tax will be successful.

Smoother sailing: Arlington airport gets grant to fix runway

A $2.3 million federal grant will pave the way for a project to resurface the airfield’s main runway.

Workers build the first all electric plane, the Eviation Alice, on Wednesday, Sept. 8, 2021 in Arlington, Washington.  The plane is designed for regional travel and to carry nine passengers. (Andy Bronson / The Herald)
Eviation moves tests of electric passenger plane to Moses Lake

The Arlington company said a bigger runway and flatter terrain are better suited to early testing of the commuter aircraft.

An artist's rendering of the new Funko warehouse in Buckeye, Arizona. (Funko) 20220407
Funko warehouse layoffs begin this week in Everett, Puyallup

The layoffs, announced in April, are part of a plan to move distribution operations to Arizona.

Rendering of the front entrance of Spruce Elementary School in Lynnwood. (Edmonds School District)
Police: Edmonds schools sent $2.7 million check to fraudster

Police say the fraudster posed as a contractor for a new elementary school. A bank caught it at the last second.

Looking north, an aerial view of Paine Field in Everett. (Paine Field / Snohomish County) 20220605
Paine Field development plan envisions an expanded terminal

Once Sea-Tac Airport reaches capacity, the Everett airport is on the short list to absorb unmet demand by passengers.