Wednesday, January 11, 2017

Layoffs Reportedly On Boeing's Horizon As Airbus Wins Order Race For 4th Year

More layoffs are expected at Boeing as European rival Airbus led the U.S.'s primary passenger jet maker again in orders for 2016.

A Boeing internal memo announced plans for involuntary layoffs from its engineers and voluntary layoffs in other divisions according to a Reuters report Tuesday. But the memo didn't say how many people would be laid off.

Boeing shares fell fractionally after the opening bell on the stock market today, trading near all-time highs. Airbus shares were unchanged.

On Wednesday, Airbus said it had 731 orders for 2016, topping Boeing's 668 net aircraft orders last year. Airbus has led Boeing in orders since 2012, and in eight of the last nine years. In December, Airbus recorded 320 net orders with massive deals from India's Go Airlines and Iran Air. Boeing's figure didn't include the 80 plans it plans to sell to Iran as business restrictions are eased as part of the nuclear agreement.

Boeing's goal was for 2016 orders to match deliveries, which totaled 748 last year vs. 762 in 2015.

Airbus has suffered from supplier problems but the issues didn't seem to weigh on results as it delivered 688 last year up from 635 in 2015 and above its exceptions. In December, Airbus said it would shift six A380 deliveries from next year to 2018 and shift another six from 2018 to 2019 over issues with engine supplier Rolls-Royce.

(Gillian Rich - Investor's Business Daily News)

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