787 Delay Did Not Hit Quarterly Results

Decidedly mixed. That's how the world's financial markets appear to be handling news of Boeing's posted third-quarter profit, which rose more than expected.

On Wednesday, Boeing reported a Q3 net profit of $1.1 billion, or $1.44 per share. That compares to $694 million (89 cents per share) for the same period in 2006. The numbers -- fueled by continued strong demand for Boeing's commercial aircraft -- beat Wall Street forecasts, according to Reuters.

Strong commercial airliner sales are likely to continue in the near-future, Boeing CEO Jim McNerney said. Firm orders for Boeing planes now stand at 919, he said... and could surpass last year's record of 1,044. The planemaker also delivered more planes for the quarter, 109 compared to 100 for Q3 of 2006.

Shares in Boeing rose initially following the news, but fell off in midday trading... a result of Boeing's scaled-back revenue forecast for 2008, due to the recently-announced delay in deliveries of the upcoming, composite-bodied 787 Dreamliner.

As ANN reported, Boeing came clean on Dreamliner delays two weeks ago, saying its schedule for the 787 slipped by six months due to vendor parts shortages, and uncompleted work by suppliers. First delivery is now scheduled to All Nippon Airlines in November 2008, at the earliest.

Last week, Boeing also replaced former 787 program chief Mike Bair with Pat Shanahan. During Wednesday's announcement, McNerney took pains Wednesday to allay fears of further Dreamliner angst.

"I would characterize it as an aggressive plan with normal margins in it," said McNerney of Boeing's revised plan. "The likelihood of a surprise is not high."

Regardless of whether Boeing can meet its revised schedule, the fact remains the planemaker will deliver far fewer Dreamliners in 2008 than it originally planned... which will hit Boeing's projected bottom line in revenue. Boeing now projects a revenue forecast for 2008 somewhere between $67.5 billion and $68.5 billion -- down from previous estimates as high as $72 billion.

FMI: www.boeing.com