Aviation

Boeing Set To Cut 787 Dreamliner Production Rate To 12 Per Month

Boeing temporarily halts deliveries of 787 Dreamliner jets

Commercial Airplane’s third-quarter revenue was $8.2 billion reflecting lower 737 deliveries. Third-quarter operating margin decreased to (0.5) percent reflecting lower 737 deliveries partially offset by a higher margin on the 787 programs. During the quarter estimated costs to produce 737 aircraft included in the accounting quantity increased by $0.9 billion primarily to reflect current assumptions regarding the timing of return to service and the timing of planned production rate increases. There was no significant change to estimated potential concessions and other considerations to customers related to the 737 MAX grounding.

Commercial Airplanes delivered 62 airplanes during the quarter. Given the current global trade environment, the 787 production rate will be reduced to 12 airplanes per month for approximately two years beginning in late 2020. The 777X program is progressing through pre-flight testing and remains on track for first flight in early 2020. The company is now targeting early 2021 for first delivery of the 777X.

Boeing Co faced additional uncertainty on 10 October 2019 over future production rates for its 787 Dreamliner after Russian carrier Aeroflot formally canceled an order for 22 aircraft valued at about $5.5bn at list prices

Commercial Airplanes booked net orders worth $5 billion during the quarter, including orders for twenty 787 airplanes for Korean Air, eight 787 airplanes for Air New Zealand, and six 777 freighters for China Airlines. Commercial Airplanes backlog included nearly 5,500 airplanes valued at $387 billion.

Continue to engage global regulators and customers on safe return to service of the 737 MAX
Revenue of $20.0 billion reflecting lower 737 deliveries and higher defense and services volume
GAAP EPS of $2.05 and core EPS (non-GAAP)* of $1.45 per share
Operating cash flow of ($2.4) billion; paid $1.2 billion of dividends
Total backlog of $470 billion, including nearly 5,500 commercial airplanes
Cash and marketable securities of $10.9 billion provide strong liquidity

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Aviation

Boeing, Antonov to Collaborate on Defense Projects

– MOU represents Boeing’s commitment to work with Ukrainian industry

– Includes exploring opportunities for collaborating on in-country support of Unmanned Aerial Systems

A Memorandum of Understanding was signed today by Boeing and Antonov Company to investigate potential collaboration on defense-related projects.

“We’re happy to keep collaborating with the Antonov Company to help Ukraine’s economic development and expansion,” stated Ted Colbert, CEO and president of Boeing Defence, Space, & Security.

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“This agreement demonstrates our ongoing efforts to find more opportunities to work with Ukrainian industry, which was underscored by our signing of the Ukrainian Defence Industry Compact earlier this year.”

The areas of potential collaboration identified in the agreement consist of training, logistical support and overhaul services for tactical Unmanned Aerial Systems utilized by the Ukrainian Armed Forces, which includes the ScanEagle. In addition, the companies will also explore opportunities for Antonov to provide engineering support to Boeing.

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“A strong, innovative, and efficient defense industry is key to sustainable economic development and national security, and we are extremely excited to collaborate with Boeing,” said Ievhen Gavrylov, CEO of Antonov Company.

This agreement brings a whole new level of opportunity to implement the latest and most effective solutions – in addition to the possibility of future projects with Boeing in the aerospace and defense industry.”