KPLU Local News
(2010-01-27)
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SEATTLE, WA
(KPLU) -
Boeing reports revenues were up 42 percent in its 4th quarter, reversing an $86 million-dollar loss from a year ago and beating analysts' expectations. But the company sees a challenging year ahead.
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Boeing's earnings guidance for 2010 topped out at $4 dollars a share, below Wall Street's predictions. Boeing Chairman and CEO Jim McNerney says the company has a healthy backlog of orders, but also must spend most of its cash this year on continued development of new airplanes. And he says the economy is still a big wild card.
"The global recession has clearly affected our airline customers, in the form of reduced air traffic growth and resulting capacity reductions," McNierny said in a conference call. "While consumer sentiment appears to be improving, we believe it will take some time for economic indicators to rebound significantly."
McNierny says Boeing has 3,300 firm orders for airplanes. But it projects delivering no more than 465 of them this year - 20 fewer than last year. And he predicts the start-up costs for its newer programs will continue to reduce profits before generating them.
Boeing expects to finish flight testing and deliver the first 787 Dreamliner by the end of this year. And the company's new version of its popular jumbo jet, the 747 dash 8, is soon to take its first flight.
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