Boeing Says 2011 Profit Hurt by 787, Defense Cuts |
ABC News - Jan 26, 2011 |
Boeing Co. said on Wednesday that its 2011 profit will be hurt by delays to its new 787 and higher pension expenses.
The airplane builder and defense company also said its fourth-quarter profit fell 8 percent to $1.16 billion. Revenue dropped 8 percent to $16.55 billion.
Boeing shares fell $2.55, or 3.5 percent, to $69.69 in morning trading.
Boeing is being hit by several tough-to-manage forces. The 787 is running three years late, and earlier this month it pushed back delivery of the plane from February until at least July. Pension expenses are rising. And the Pentagon as well as overseas governments are tightening defense spending. Half of Boeing's revenue is from defense and space-related work.
It plans to deliver 485 to 500 airplanes in 2011. That includes 25 to 40 of the new 787s and its revamped 747, split about equally between the two planes.
Read Full Article from ABC News
- Posted: 2011-01-26 11:00:40
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