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Boeing hit by first quarterly loss in 7 years as H1 profits plunge 63pc
US PLANEMAKER Boeing suffered 121 per cent second quarter year-on-year net profit loss - its first quarterly loss in seven years - of US$234 million, drawn on revenues of $24.7 billion, which increased one per cent.
The company suffered a 60 per cent year-on-year first half net profit decline of $985 million, drawn on revenues of 47.2 billion, which increased one per cent.Boeing also announced it is considering ending production of the iconic 747 aircraft after 50 years of revolutionising air travel.
Boeing has made more than 1,500 747s, but new technology, changing travel patterns and economics have overtaken the world's first jumbo jet, according to Washington State's Everett Herald.
Boeing said in a recent regulatory filing that ending 747 production in the next few years is a real possibility.
Boeing absorbed $3 billion in charges before taxes from the 747, 787 and KC-46 programmes. The company already plans on reducing 747-8 production by September, when it will go from making one jumbo jet a month to one every two months. Demand for the massive aircraft has dramatically dropped off in recent years. Boeing has not had any orders for the passenger version since 2013, and only a handful of freighters orders since then.
For several years, company leaders have insisted that a rebound in air cargo would spur new orders for the 747-8 freighter. Now, they say they hope to get enough orders to keep the line open at a lower production rate.
Boeing has "a number of very viable campaigns underway to fill" delivery slots at the lower production rate of one 747 every two months, Boeing president and CEO Dennis Muilenburg said in a conference call with financial analysts and reporters.
Those campaigns are for replacement orders of older 747-400 freighters approaching retirement age, he said. "Despite air cargo's weakness, we continue to see the 747 as a unique and significant value creator for our customers in the long-term," he said.
The company continues to pursue 747 sales and is "aggressively" working to drive down production cost and increase efficiency, Mr Muilenburg said.
The company suffered a 60 per cent year-on-year first half net profit decline of $985 million, drawn on revenues of 47.2 billion, which increased one per cent.Boeing also announced it is considering ending production of the iconic 747 aircraft after 50 years of revolutionising air travel.
Boeing has made more than 1,500 747s, but new technology, changing travel patterns and economics have overtaken the world's first jumbo jet, according to Washington State's Everett Herald.
Boeing said in a recent regulatory filing that ending 747 production in the next few years is a real possibility.
Boeing absorbed $3 billion in charges before taxes from the 747, 787 and KC-46 programmes. The company already plans on reducing 747-8 production by September, when it will go from making one jumbo jet a month to one every two months. Demand for the massive aircraft has dramatically dropped off in recent years. Boeing has not had any orders for the passenger version since 2013, and only a handful of freighters orders since then.
For several years, company leaders have insisted that a rebound in air cargo would spur new orders for the 747-8 freighter. Now, they say they hope to get enough orders to keep the line open at a lower production rate.
Boeing has "a number of very viable campaigns underway to fill" delivery slots at the lower production rate of one 747 every two months, Boeing president and CEO Dennis Muilenburg said in a conference call with financial analysts and reporters.
Those campaigns are for replacement orders of older 747-400 freighters approaching retirement age, he said. "Despite air cargo's weakness, we continue to see the 747 as a unique and significant value creator for our customers in the long-term," he said.
The company continues to pursue 747 sales and is "aggressively" working to drive down production cost and increase efficiency, Mr Muilenburg said.
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