[an error occurred while processing this directive]
BBC News
watch One-Minute World News
Last Updated: Wednesday, 25 October 2006, 21:07 GMT 22:07 UK
Broadband exit hits Boeing profit
Model of Boeing's new 787 Dreamliner
Boeing says it has passed key production milestones for the 787
Boeing has suffered a slump in quarterly profits, due mainly to the cost of terminating its unsuccessful in-flight broadband service.

Boeing decided to scrap the Connexion high-speed service earlier this year after lukewarm interest from airlines.

The move cost Boeing $280m (149m) in the third quarter, leading to a 31% fall in profits to $694m in the period.

But Boeing said its core business was strong, with deliveries set to rise in 2007 and 2008 and record orders.

Dreamliner schedule

It has now taken 432 orders for its new 787 plane - known as the Dreamliner - and reiterated that it expected to deliver the plane on schedule in 2008.

The firm has staked much of its future on the success of the 787 and has been competing fiercely for orders with rival Airbus' A350 aircraft.

In contrast, Airbus has suffered a string of delays to its flagship A380 superjumbo and will not fulfil its first order until the end of 2007 - a year behind schedule.

We aim to achieve a new level of consistently strong financial performance
Jim McNerney, Boeing chief executive.

Boeing delivered 100 planes during the quarter, up from 62 in the equivalent period last year, and expects to fulfil 395 orders this year.

Deliveries are expected to increase to between 440 and 445 next year and to rise again in 2008.

Boeing's order book is currently worth $229bn, 12% higher than at the same time last year.

Despite the costly exit from Connexion, Boeing said its core civil and military aviation businesses were performing strongly.

"As we continue to drive our growth and productivity efforts, we aim to achieve a new level of consistently strong financial performance," said Jim McNerney, Boeing's chief executive.

Boeing shares fell 3.2% on market worries about its 2007 outlook.

Boeing exits in-flight broadband
17 Aug 06 |  Business
Boeing posts loss on probe costs
26 Jul 06 |  Business
Emirates deal boosts Boeing sales
18 Jul 06 |  Business
Boeing will build 'stretch' 787
27 Mar 06 |  Business
Boeing raises 787 delivery target
22 Dec 05 |  Business
Boeing unveils record order book
05 Jan 06 |  Business

The BBC is not responsible for the content of external internet sites

Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit


Americas Africa Europe Middle East South Asia Asia Pacific