Ramon Lopez/WASHINGTON DC
Boeing is to reduce the production rate of the 747-400 from five to three and a half aircraft a month by the second quarter of next year in the face of a continuing soft market, particularly in the Asia region.
Company chairman Phil Condit warns that the rate could drop even lower if economic conditions do not improve. The warning comes as Boeing reports net earnings of $347 million on $13 billion sales for the third quarter of this year, compared with a net loss of $696 million in the same three months a year ago, when the company took a charge of $1 billion related to commercial transport production problems and late-delivery costs.
During the third quarter, 747 production increased from four to five aircraft but that rate is heading down again to a level which was last seen in late 1996.
Boeing salesman are reported to be mounting an aggressive market campaign in a bid to improve the near term orderbook.
The cutbacks on the 747 have not deterred Condit from forecasting that net earnings for the year will reach $1 billion and will be double that in 1999. Profits for the nine months amount to $655 million on sales of $39 billion, compared with last year's figures for the period showing $320 million profit on sales of $34 billion.
Production of the Next Generation 737, which increased from 14 aircraft a month to the current 21 a month, will rise to 24 aircraft a month in the second quarter of 1999, says Alan Mulally, the new president of Boeing's Commercial Airplane Group.
If a second line is opened at Long Beach, California, total monthly production of the twinjet will reach 27 a month by the second quarter of next year.
The 777 rate rose from five to seven aircraft a month during the quarter. This figure will drop in the fourth quarter of 1999 from seven to five, before returning to seven in the year 2000. Meanwhile, the number of undelivered aircraft held in storage totals 34 now awaiting financing.
Source: Flight International
