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Boeing quarterly profit off 29pc to US$1.03 billion, sales slip 4pc
BOEING posted a 29 per cent fourth quarter decline in net profit year on year to US$1.03 billion, drawn on revenue of $23.7 billion, down four per cent.
The planemaker said a $569 million after-tax charge was due to a sluggish air cargo market. Boeing has trimmed the production rate of the jumbo jet from one a month to one in two months.
"Global air passenger traffic growth and airplane demand remain strong, but the air cargo market recovery that began in late 2013 has stalled in recent months and slowed demand for the 747-8 Freighter," said Boeing vice chairman Ray Conner.
Boeing reported record deliveries in 2015, 762 planes and 182 in the last quarter. Boeing delivered one hundred and twenty 737s, the company's bread-and-butter aircraft.
The 787 Dreamliner has yet to turn a profit and its deferred cost rose another $201 million and now stands at $28.5 billion.
This means that the company sold each Dreamliner at an average loss of nearly $6 million during the last quarter.
Boeing said that it expects to deliver fewer planes in 2016 in comparison to 2015. It has given a target range of 740 to 745 planes.
That compares with a record 762 aircraft delivered, a reduction attributed to the manufacture of fewer 737s as Boeing shifts from the 737 to the 737 Max.
Boeing is also assuming a cut in the 747-8 production rate as demand for the aircraft remains low.
The planemaker said a $569 million after-tax charge was due to a sluggish air cargo market. Boeing has trimmed the production rate of the jumbo jet from one a month to one in two months.
"Global air passenger traffic growth and airplane demand remain strong, but the air cargo market recovery that began in late 2013 has stalled in recent months and slowed demand for the 747-8 Freighter," said Boeing vice chairman Ray Conner.
Boeing reported record deliveries in 2015, 762 planes and 182 in the last quarter. Boeing delivered one hundred and twenty 737s, the company's bread-and-butter aircraft.
The 787 Dreamliner has yet to turn a profit and its deferred cost rose another $201 million and now stands at $28.5 billion.
This means that the company sold each Dreamliner at an average loss of nearly $6 million during the last quarter.
Boeing said that it expects to deliver fewer planes in 2016 in comparison to 2015. It has given a target range of 740 to 745 planes.
That compares with a record 762 aircraft delivered, a reduction attributed to the manufacture of fewer 737s as Boeing shifts from the 737 to the 737 Max.
Boeing is also assuming a cut in the 747-8 production rate as demand for the aircraft remains low.
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