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CONDIT: BOEING IN STRONG POSITION FOR FUTURE GROWTH

 PARIS, June 11 /PRNewswire/ -- The Boeing Co. (NYSE: BA) is confident it has the financial strength to weather today's aerospace problems and is better prepared than ever to meet new challenges, the president of the Seattle-based aerospace concern said today.
 Speaking to business and aerospace journalists at the Paris Air Show, Philip Condit said, "We understand the current environment and we're taking decisive action to maintain our profitability throughout the current downcycle."
 Condit said The Boeing Co.'s financial position remains the strongest in the U.S. aerospace industry. With that as a foundation, he said, "We're continuing to focus a decade ahead because we know if we don't -- if we fall behind -- it's tough to catch up."
 For the long-term, he added, the Boeing strategy is to "keep ahead of the competition by delivering products and services that clearly represent the best value for our customers. This is true whether our customer is the Pentagon, NASA or one of the world's commercial airlines."
 Condit noted that faced with the challenge of decreasing defense outlays, Boeing Defense & Space Group reduced its overhead in line with the reduction in the business base. He said this has been accomplished by consolidating facilities, streamlining the organization and driving accounting responsibility closer to where costs are incurred and decisions are made.
 The result, said Condit, is that 1992 marked the return to profitability for the Defense & Space Group, which posted an operating profit of $204 million on sales of $5.4 billion. "We expect defense spending to stabilize and for our Defense & Space Group to continue to have annual sales in the $4-billion to $5-billion range over the near term."
 On the commercial side of the business, Condit said airframe manufacturers continue to be impacted by the ongoing difficulties facing most airlines. "Until the airline industry can achieve sustained levels of acceptable profitability, future orders for new airplanes will remain at today's levels," he said.
 However, he stated that by combining airline cost-reduction efforts and manufacturers' production decreases together with a shot of economic growth, air travel and airline profits will recover. "Increased orders for new airplanes or requests to accelerate existing orders will follow," he asserted.
 He pointed to several positive indicators. "The recent order from the Civil Aviation Administration of China (CAAC) was a welcome addition to our order books for 1993," he said, noting that China has now committed to receive 225 Boeing jetliners worth $9 billion.
 "Altogether, the number of Boeing airplanes on order since the 1991 Paris Air Show has increased by 228 wide-body airplanes and 246 737s and 757s. Given the industry's troubled times, we're pleased with the number of airplanes our customers have ordered."
 Condit said airline as well as government customers are demanding higher and higher quality at competitive prices. He said it is The Boeing Co.'s intention to continually build on its established record for excellence to meet the rising expectations.
 "The current high level of product and service quality offered by Boeing is a result of countless improvements made by our employees over many years," he explained.
 "Our emphasis is to expand and accelerate these past improvement activities such that every person and organization will be continuously identifying ways to improve processes, products or services. I believe the result will add up to a breakthrough in production equal to a breakthrough in aerodynamics."
 Condit reiterated that Boeing is strong and in a much better market position to weather the current environment than during previous cycles. "We have the financial strength to sustain our leadership, so we're confident about our future."
 -0- 6/11/93
 /CONTACT: Paul Binder of The Boeing Co., 206-655-6123/
 (BA)


CO: The Boeing Co.; Boeing Defense & Space Group ST: Washington IN: AIR ARO SU:

SW -- SE001 -- 1009 06/11/93 10:31 EST
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Date:Jun 11, 1993
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