Boeing 787-800 (40690/1) (ZA001) N787BA taxies at Boeing Field (BFI/KBFI) on May 4, 2010 following a test flight. (Photo by Michael Carter)
The Boeing Company said it expects to deliver 25 to 40 787s and 747-8s this year, roughly equally split between the two types, as it reported that earnings for the 2010 fourth quarter dipped 8%, to $1.16 billion from $1.27 billion in the year-ago period on fewer transport deliveries and higher pension expense. Net income for the year jumped 152%, however, to $3.31 billion from $1.31 billion earned in 2009.
"Boeing delivered strong operating performance and exceptional cash generation from core production and services business in 2010, which helped mitigate the impact of development program challenges," Chairman, President and CEO Jim McNerney said in a statement.
Revenue fell 6% for the year to $64.31 billion but earnings from operations jumped 137% to $4.97 billion from $2.10 billion in 2009. Fourth-quarter revenue slid 8% to $16.55 billion and operating income plunged 35% to $1.1 billion from $1.69 billion in the fourth quarter of 2009.
Boeing Commercial Airplanes revenue fell 11% to $8.18 billion for the fourth quarter on lower deliveries of the 747 and 777 and 7% to $31.83 billion for the full year. Earnings from operations for the fourth quarter of 2010 plunged 39% to $627 million from $1.02 billion in the year-ago period while full-year operating earnings totaled $3.01 billion for 2010 versus an operating loss of $583 million in 2009 on special items related to the 747-8 and 787 programs.
BCA is producing two 787s per month and expects to reach a rate of 10 per month by the end of 2013, McNerney said during the company's fourth-quarter webcast. ANA is scheduled to receive the first 787 during the third quarter, while Cargolux is scheduled to take delivery of the first 747-8F mid-year. First delivery of the 787-9 is expected in late 2013, he said.
Boeing Corporate President and CFO James Bell said that as of the fourth quarter the 787 program was not in a loss position, although "the cumulative impact of 787 schedule revisions has put pressure on program profitability." The early 787 and 747-8 deliveries will be delivered at "potentially zero margins," Bell said.
For 2011, Boeing expects revenues of $68-$71 billion, reflecting the impact of initial 787 and 747-8 deliveries. BCA expects to deliver 485-500 aircraft this year, up from 462 in 2010 and also expects that orders will exceed deliveries, with annual revenues of $36-$38 billion. The company booked net orders for 530 units last year.
Commenting on a possible 737 successor or a re-engining, McNerney said, "For me, putting our [existing 737] backlog at risk twice—once with a re-engining … and then again with a new airplane—only makes sense if the new airplane wants to be developed in 2025 or beyond…. We're leaning toward development in the 2020 timeframe."
(Perry Flint - ATWOnline News)
The Boeing Company said it expects to deliver 25 to 40 787s and 747-8s this year, roughly equally split between the two types, as it reported that earnings for the 2010 fourth quarter dipped 8%, to $1.16 billion from $1.27 billion in the year-ago period on fewer transport deliveries and higher pension expense. Net income for the year jumped 152%, however, to $3.31 billion from $1.31 billion earned in 2009.
"Boeing delivered strong operating performance and exceptional cash generation from core production and services business in 2010, which helped mitigate the impact of development program challenges," Chairman, President and CEO Jim McNerney said in a statement.
Revenue fell 6% for the year to $64.31 billion but earnings from operations jumped 137% to $4.97 billion from $2.10 billion in 2009. Fourth-quarter revenue slid 8% to $16.55 billion and operating income plunged 35% to $1.1 billion from $1.69 billion in the fourth quarter of 2009.
Boeing Commercial Airplanes revenue fell 11% to $8.18 billion for the fourth quarter on lower deliveries of the 747 and 777 and 7% to $31.83 billion for the full year. Earnings from operations for the fourth quarter of 2010 plunged 39% to $627 million from $1.02 billion in the year-ago period while full-year operating earnings totaled $3.01 billion for 2010 versus an operating loss of $583 million in 2009 on special items related to the 747-8 and 787 programs.
BCA is producing two 787s per month and expects to reach a rate of 10 per month by the end of 2013, McNerney said during the company's fourth-quarter webcast. ANA is scheduled to receive the first 787 during the third quarter, while Cargolux is scheduled to take delivery of the first 747-8F mid-year. First delivery of the 787-9 is expected in late 2013, he said.
Boeing Corporate President and CFO James Bell said that as of the fourth quarter the 787 program was not in a loss position, although "the cumulative impact of 787 schedule revisions has put pressure on program profitability." The early 787 and 747-8 deliveries will be delivered at "potentially zero margins," Bell said.
For 2011, Boeing expects revenues of $68-$71 billion, reflecting the impact of initial 787 and 747-8 deliveries. BCA expects to deliver 485-500 aircraft this year, up from 462 in 2010 and also expects that orders will exceed deliveries, with annual revenues of $36-$38 billion. The company booked net orders for 530 units last year.
Commenting on a possible 737 successor or a re-engining, McNerney said, "For me, putting our [existing 737] backlog at risk twice—once with a re-engining … and then again with a new airplane—only makes sense if the new airplane wants to be developed in 2025 or beyond…. We're leaning toward development in the 2020 timeframe."
(Perry Flint - ATWOnline News)
1 comment:
Hello Michael Carter.
Congratulations on your blog Aero Pacific. Am Maikson, editor of Aviation blog In Manaus, Brazil, and also follow his blog. I would love to be a partner of Pacific Aero. would be happy to have more friends in aviation beyond the borders of Brazil. I await your response. And we visit www.maoaviation.blogspot.com; is always welcome to our blog!
E-mail: maikson.santos @ gmail.com
Hugs from Manaus and Brazil
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