BOEING SUFFERS FIRST OPERATING LOSS SINCE '69.Byline: Knight-Ridder Tribune tribune, in ancient Rome, one of various officers. The history of the office of tribune is closely associated with the struggle of the plebs against the patrician class to achieve a more equitable position in the state. From c.508 B.C. The Boeing (language) BOEING - An early system on the IBM 1130. [Listed in CACM 2(5):16, May 1959]. Co. on Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant announced the largest quarterly financial loss in its history and laid part of the blame on a $100 million loss at Douglas Douglas, city, Isle of Man Douglas, city (1991 pop. 19,950), capital of the Isle of Man, Great Britain. It is a popular resort, connected by rail to Ramsey and Port Erin, on the Irish Sea. Tourism is the chief industry. Products Division in Long Beach. Boeing posted a loss for the three-month July-September period of $696 million, its first operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. since 1969. Although the company had said earlier this week that it would take a $1.6 billion charge against third-quarter earnings because of production problems in Seattle, the overall loss of nearly $700 million, amounting to 72 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , was more than most analysts had anticipated. Boeing's sales for the quarter were $11.4 billion. Phil Condit, chairman and chief executive officer of Boeing, on Friday repeated earlier company statements that the $1.6 billion charge was the added expense of inefficiencies and parts and labor shortages A Labor shortage is an economic condition in which there are insufficient qualified candidates (employees) to fill the market-place demands for employment at any price. This condition is sometimes referred to by Economists as "an insufficiency in the labor force. as the company dramatically boosted the rate at which it produces airplanes. Production is rising from 18 airplanes per month last year to a planned 43 per month by next spring. Condit said out-of-sequence work assembly work done out of the proper order costs about five times as much as in-sequence work. He said most of the added production costs were due to out-of-sequence work. Production problems got so bad that on Oct. 3, the company announced it would close down its 747 and 737 assembly lines for about a month in order to catch up on behind-schedule work. Condit said Boeing will deliver about 335 airplanes this year, down from an earlier estimate of 345. Production snarls in Seattle are expected to cost the company an additional $1 billion through the end of 1998. Boeing spokesman Larry McCracken said that despite the third quarter loss, the company should end the year with an overall profit. Boeing's commercial aircraft building unit in Long Beach Douglas Products Division, formerly Douglas Aircraft Co. lost about $100 million during the quarter, McCracken said. Boeing officials attributed this to increased expenses on the MD-95 plane, production inefficiencies and the fact that several planes delivered during the quarter were actually leases instead of sales and therefore contributed a minimal amount of revenue for the period. The operating loss is apparently the largest ever for Douglas. For the quarter ended June 30, the last period in which Douglas Aircraft Co. reported its finances as part of McDonnell Douglas McDonnell Douglas was a major American aerospace manufacturer and defense contractor, producing a number of famous commercial and military aircraft. It merged with Boeing in 1997 to form The Boeing Company. Corp., the division earned a profit of $14 million. Since the merger with Boeing, financial figures for Douglas are not broken out separately. The company did not disclose sales figures sales figures npl → cifras fpl de ventas at the Douglas plant, which employs more than 10,000 people in Long Beach. The C-17 program, which is now part of the Boeing Information, Space and Defense Systems group, employs an additional 8,500 people in the city. Information on the C-17 program is not provided separately. Condit said he expects the company to make an announcement on what will happen to the Douglas Products Division on Nov. 3. He gave no indication as to what decisions will be announced. However, he did say the company may have additional write-offs in connection with Douglas assets and restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). at Douglas. It is widely anticipated that Boeing will shut down production of the MD-90 and MD-80 airplanes after current orders have been filled. The jumbo jet MD-11 is expected to continue in production, possibly only as a cargo carrier. Boeing is expected to develop the 100-passenger MD-95 into a family of small planes. Ironically i·ron·ic also i·ron·i·cal adj. 1. Characterized by or constituting irony. 2. Given to the use of irony. See Synonyms at sarcastic. 3. , it has been Boeing's aggressive sales and rock-bottom pricing, resulting in a surge of orders last year and this year, that is responsible for the company's financial problems now. A year ago, as Boeing announced it would step up production, some of its suppliers began warning that they would be unable to keep pace. |
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