We were writing and editing PBB today, so unfortunately this afternoon I didn’t have a chance to get caught up on some of today’s news. While I wrote this week about Boeing’s (BA:NYSE) earnings results, which were better than expected, I did not have a chance to listen to the company’s earnings call.
So guess what Boeing said in its call today?
First three guesses don’t count.
Yep. That’s right.
Boeing said today that the 787 is still too heavy. Not only that but more than one supplier is falling behind schedule.
While Boeing CEO Jim McNerney said in the call that the company was confident that the problems involved will not cause a delay with the plane’s entry to service, you know how silly those folks on Wall Street are.
Yep, given what we’ve seen with Airbus — you can understand why shares of Boeing were under the gun today. It’s not just a matter of being late, it’s also a matter of increasing costs. Wall Street doesn’t like hearing that costs to get the aircraft in the air could increase — but by a still undetermined amount.
For a pretty good summary of what McNerney said during the call, along with other comment, here’s an article from the Seattle Post-Intelligencer from this afternoon.
As we said earlier this year — this is not unexpected. It’s a new plane for cryin’ out loud.
But certainly the extent of the problems and delays with the Airbus A380 does nothing but raise the anxiety level about the 787′s delivery schedule as well.