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Boeing may reduce 747 production rate

Post by John Gillie / The News Tribune on Feb. 13, 2013 at 12:10 pm with No Comments »
February 13, 2013 2:04 pm
Disappointing sales for Boeing newest 747 airliner could force the company to cut back the production pace on its Everett assembly line next year, the company said in a newly released filing with the federal Securities and Exchange Commission

747-8 on Everett assembly line
747-8 on Everett assembly line
The production rate increased from 1.5 to 2 airplanes per month in May 2012.But the company failed to win significant new orders last year with just one new net order for the 747-8.  In the last five years, the company has won just four net orders for the plane.Boeing explained its situation this way in its federal filing:

“We have a number of unsold Freighter and Intercontinental production positions beyond 2013. If we are unable to obtain orders for multiple Freighter aircraft in 2013 consistent with our near-term production plans, we may be required to take actions including reducing the number of airplanes produced and/or building airplanes for which we have not received firm orders. 

“We also remain focused on reducing out-of-sequence work, improving supply chain efficiency and implementing cost-reduction efforts. If market and production risks cannot be mitigated, the program could face an additional reach-forward loss that may be material,” the company said.

Boeing has just 67 unfilled orders for the 747-8. Thirty-nine of those are for freighters. The remainder are for passenger jets.

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