BOEING POSTS SECOND QUARTERLY LOSS IN A ROW.

Byline: Felix Sanchez Staff Writer

The Boeing Co. posted its second straight quarterly loss in 2003, totaling $192 million, and announced it is reducing previous estimates for 2004 profits and the number of commercial jets it expects to deliver.

A commercial aviation market that continues to sputter despite earlier optimistic projections and likely won't begin recovering before 2005 led to the losses.

It's also ignited speculation that the once popular 757 commercial passenger jet may be on the chopping block, and raised questions about the future performance of the 717 100-seat passenger jet that is built in Long Beach and was almost scrapped in 2001.

Boeing CEO Phil Condit acknowledged it's possible the 757 production could be shut down but stressed Boeing was closely watching potential sales in the Chinese commercial flying market that could mean new business for the single-aisle jet.

There have been no orders for the 757 since 2001.

Condit seemed to be more optimistic about the 717, which combined with Boeing's C-17 military transport manufacturing facility here make Boeing the largest private employer in Long Beach, with more than 14,000 workers.

But no interest still means no interest, Condit said.

``Obviously, if you don't have airplanes to build ... we are not going to build them on spec,'' Condit told financial analysts during a conference call announcing Boeing's second quarter performance.

``There is interest in that kind of an airplane (717). We clearly have more running room with it than the 757. So we're not in any near-term decision on the 717,'' Condit said. In particular, Boeing is courting the so-called STAR Alliance, a global commercial partnership of airlines, for new 717s.

Boeing almost closed the 717 in late 2001 but has opted to slow its production rate to about one a month. Long Beach workers were recently buoyed by deals between Boeing and Midwest Airlines and AirTran Airways for new 717s.

But Midwest's firm order will be slowed down to only one delivery a quarter starting in 2006 as part of restructuring to avoid bankruptcy. And AirTran's order, six firm orders with possibly four more 717s, paled in comparison with its companion order for nearly 90 Boeing 737s.

Second-quarter results were dominated by a $1.1 billion charge, announced last week, reflecting the weak demand and high costs of its satellite and launch businesses.

The world's largest aerospace company lowered its estimate for next year's earnings by 35 cents per share to a range of $1.75 to $1.95 a share.

It also narrowed its forecast for 2004 deliveries to between 275 and 290 airplanes - tightened from 275 to 300 - although it said it remains on track to deliver 280 planes this year. It pegged revenue at $52 billion for next year instead of a range of $52 billion to $54 billion.

Revenues slid 8 percent to $12.8 billion from $13.9 billion, a decline marked by a 24 percent drop in the airplanes division to $5.8 billion.

The Associated Press contributed to this report.

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BOEING'S TWO STRAIGHT LOSSES

SOURCE: The company

Associated Press