Boeing expects sales to grow by $10 billion this year, even without the pending McDonnell Douglas (MDC)merger, with commercial-airliner production rates virtually doubling by year-end.
Group sales recovered to just under $22.7 billion in 1996, while Boeing's net profit climbed back above $1 billion. The real upturn, however, is expected to take place this year, with projections of a 45%hike in sales to $33 billion.
The upswing will be helped by some $3.5 billion from the acquisition of Rockwell's aerospace and defence businesses in December, but the bulk is due from a surge in airliner production.
With recently announced rate increases, output is due to rise from 22.5 airliners a month to 40 by year-end. By then, Boeing will be building 21 737s a month and seven 777s. Although the group's commercial-aircraft backlog ended 1996 at around at $79 billion, Boeing counts another $9 billion in commitments.
Boeing's pending partner, MDC, also celebrated another record set of results, showing net profits of $788 million, despite a dip in sales below $14 billion. With new military C-17 transport and Longbow Apache orders, the backlog that the group brings with it into the merger was swelled to $23.7 billion.
Source: Flight International
