Page last updated at 12:58 GMT, Wednesday, 22 October 2008 13:58 UK

Boeing strike eats into profits

Machinists Union members man the picket line
Workers are striking about outsourcing among other issues

Boeing's continuing battle with its plane assembly workers has led to a sharp decrease in its profit.

The planemaker reported third-quarter net profit of $695m (425.9m) or 96 cents per share, down from $1.1bn and $1.44 cents per share a year earlier.

The company said the strike action, plus some delays in production, had cost it 60 cents per share in profit.

Some 27,000 of Boeing workers walked off the job on 6 September in protest over pay, outsourcing and other issues.

Revenue at the company was $15.3bn, marking a fall of 7%.

Both Boeing and the International Association of Machinists and Aerospace Workers are set to resume talks on Thursday with the help of a federal mediator.

However, the company has said that it can cope with long-lasting worker action.

Boeing has had a difficult six months. The global economic crisis, fluctuating oil prices and concerns about the financial viability of several airlines have all led to its share price plummeting 41% over the period.

Last week, it reached a four-and-a-half-year low at $39.99.

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