Boeing steps up efforts to deliver 787 Dreamliner on time

Boeing is spending additional hundred million dollars on research-and-development to ensure its 787 Dreamliner delivery on time. Earlier, the American plane maker has postponed its test flight to the end of September from August, which raised apprehensions about delivery delay for its most ambitious 787 Dreamliner. Boeing management has acknowledged the problem, but ensured delivery of its first 787 to All Nippon Airways in schedule time of May 2008. Boeing Chairman and Chief Executive James McNerney said, ‘We are spending more than originally planned to ensure we make our commitments.’ Boeing’s 787 Dreamliner stole the air show in Paris and bagged good orders, but any delay in its delivery may put it on backfoot. Boeing’s rival Airbus also faced technical problems earlier, resulting in delivery delays and loss of customers. Despite development program problem, the 787 still looks set to become the most successful jet launch in the history of the aviation industry and have already booked 683 firm orders from 47 customers. Amid the delivery apprehensions, Boeing reported healthy bounce in its second quarter profits and buoyant with it, has raised its guidance for the full year. In the second quarter, Boeing has earned $1.1 billion, or $1.35 a share, and its revenue surged to $17 billion – up 14 percent. By gaining strength in second quarter, Boeing raised its 2007 profit forecast to $4.80 to $4.95 per share, from $4.55 to $4.75. It projected sales of $65 billion, up from a previous forecast of about $64.5 billion. The company also raised its 2007 operating cash flow by $2 billion, to more than $6 billion, largely reflecting the strength of new order deposits. The company maintained its 2008 earnings forecast at $5.55 to $5.75 a share. News of profitable quarter send Boeing’s shares up by 3.3 percent, to $107.83 – a new 52-week high – July 25 on the New York Stock Exchange, before settling at $107.23. Image Via: Gulf News