Boeing Adjusts 747-8 Program Production and Delivery Schedule
- Deliveries of 747-8 Freighter to begin third quarter of 2010; deliveries of 747-8 Intercontinental passenger model to begin second quarter of 2011.
- Company working with customers to minimize disruption.
EVERETT, Wash., Nov. 14 /PRNewswire-FirstCall/ -- Boeing (NYSE: BA) today
announced an adjusted schedule for production and delivery of the 747-8
Freighter and Intercontinental airplanes.
The revised schedule is based on a production and flight-test plan
developed in conjunction with the company's suppliers that provides additional
time for addressing issues that have slowed the program's progress. Those
issues include supply chain delays driven by design changes to the airplane,
limited availability of engineering resources inside Boeing, and the recent
Machinists' strike that halted production in the company's factories.
Delivery of the first 747-8 Freighter will move from late 2009 to the
third quarter of 2010. The first 747-8 Intercontinental passenger jet
delivery moves from late 2010 to the second quarter of 2011.
"Our entire team has worked hard to mitigate growing schedule risk on this
program but have been unable to overcome the collective impact of work
statement increases to the original design, a tight supply of engineering
resources, and the recent Machinists' strike," said Boeing Commercial
Airplanes President and CEO Scott Carson. "We are clearly disappointed in what
this schedule change means for our customers, employees, suppliers and other
stakeholders. However, it is the appropriate and prudent decision to ensure a
successful program, and we are committed to working with our customers to
mitigate any disruption it causes them."
The revised schedule is the result of a comprehensive assessment of the
production system and flight-test plan that began in late August and concluded
with the incorporation of the impact of the recent strike.
"The remaining work on the 747-8 program is well defined," said Ross R.
Bogue, vice president and general manager - 747 Program and Everett site.
"This schedule adjustment provides the time we need to finish that work and
bring both airplanes to market successfully for our customers."
The risk of a schedule adjustment on the program was previously identified
and was provisioned for in Boeing's third quarter financial results. The
company will provide updated financial guidance and a post-strike assessment
of the schedule for all its commercial airplane programs at a later date.
Forward-Looking Information Is Subject to Risk and Uncertainty Certain
statements in this report may constitute "forward-looking" statements within
the meaning of the Private Securities Litigation Reform Act of 1995. Words
such as "expects," "intends," "plans," "projects," "believes," "estimates,"
and similar expressions are used to identify these forward-looking statements.
These statements are not guarantees of future performance and involve risks,
uncertainties and assumptions that are difficult to predict. Forward-looking
statements in this press release include, among others, statements regarding
future results as a result of our growth and productivity initiatives, our
financial outlook and the benefits of the IDS structure. Forward-looking
statements are based upon assumptions as to future events that may not prove
to be accurate. Actual outcomes and results may differ materially from what is
expressed or forecasted in these forward-looking statements. As a result,
these statements speak only as of the date they were made and we undertake no
obligation to publicly update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise. Our actual
results and future trends may differ materially depending on a variety of
factors, including the continued operation, viability and growth of major
airline customers and non-airline customers (such as the U.S. Government);
adverse developments in the value of collateral securing customer and other
financings; the occurrence of any significant collective bargaining labor
dispute; our successful execution of internal performance plans including our
company-wide growth and productivity initiatives, production rate increases
and decreases (including any reduction in or termination of an aircraft
product), availability of raw materials, acquisition and divestiture plans,
and other cost-reduction and productivity efforts; charges from any future
SFAS No. 142 review; ability to meet development, production and certification
schedules for the 747-8 and/or 787 program and the ability to meet scheduled
deliveries of the 747-8 and/or 787 airplane; technical or quality issues in
development programs (affecting schedule and cost estimates) or in the
satellite industry; an adverse development in rating agency credit ratings or
assessments; the actual outcomes of certain pending sales campaigns and U.S.
and foreign government procurement activities, including the uncertainty
associated with the procurement of tankers by the U.S. Department of Defense
(DoD) and funding of the C-17 program; the cyclical nature of some of our
businesses; unanticipated financial market changes which may impact pension
plan assumptions; domestic and international competition in the defense, space
and commercial areas; continued integration of acquired businesses;
performance issues with key suppliers, subcontractors and customers;
significant disruption to air travel worldwide (including future terrorist
attacks); global trade policies; worldwide political stability; domestic and
international economic conditions; price escalation; the outcome of political
and legal processes, changing priorities or reductions in the U.S. Government
or foreign government defense and space budgets; termination of government or
commercial contracts due to unilateral government or customer action or
failure to perform; legal, financial and governmental risks related to
international transactions; legal and investigatory proceedings; tax
settlements with the IRS and various states; U.S. Air Force review of
previously awarded contracts; costs associated with the exit of the Connexion
by Boeing business; and other economic, political and technological risks and
uncertainties. Additional information regarding these factors is contained in
our SEC filings, including, without limitation, our Annual Report on Form 10-K
for the year ended December 31, 2007 and our Quarterly Reports on Form 10-Q
for the quarters ended March 31, June 30, and September 30, 2008.
