The Biz Buzz

Get the most up-to-date news, insights and analysis of Tacoma, Pierce County and South Puget Sound business.

NOTICE: The Biz Buzz has moved.

With the launch of our new website, we've moved The Biz Buzz.
Visit the new section.

Boeing may reduce 747 production rate

Post by John Gillie / The News Tribune on Feb. 13, 2013 at 12:10 pm |
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.

*
The News Tribune now uses Facebook commenting on selected blogs. See editor's column for more details. Commenters are expected to abide by terms of service for Facebook as well as commenting rules for thenewstribune.com. Report violators to webmaster@thenewstribune.com.