Boeing Company has released its third-quarter results, posting a decline in net income by 38 percent to $695 million. The company cited the ongoing machine workers strike and production challenges for wide-body airplanes, which delayed commercial airplane deliveries. It also stated that the global financial crisis has not significantly impacted the company's write-downs.
"While the suspension of commercial airplane deliveries had a major impact on the quarter, we effectively executed the remainder of our business and kept our focus on the strong balance sheet we have built over the past few years," said chairman, president and CEO Jim McNerney. "That balance sheet, along with our broad-based, record $349 billion backlog, gives us exceptional flexibility for weathering an extended work stoppage and for adapting to circumstances that may arise from the global financial crisis and softening global economy."
The Commercial Airplanes segment's revenues declined 16 percent in comparison to the third-quarter of last year, down to $6.9 billion and its earnings from operations dropped from $945 million to $394 million since last year.
A positive for Boeing's Commercial Airlines segment remains the 787 Dreamliner, part of a recent purchase agreement with American Airlines. The aircraft had successful testing of its hydraulic system, landing gear, and pressurization of the static airframe. Including the agreement with American Airlines, the 787 Dreamliner program has won 895 net airplane orders from 58 customers.
Boeing forecasts a strong demand for delivery of fuel-efficient commercial airplanes and expects to finance deliveries beginning in 2009. The company also announced that it will update its financial guidance after the machine workers' strike concludes.