Boeing to shut 757 line
Aircraft maker will discontinue the production line by 2005, take pretax charge of $184M.
October 16, 2003: 6:39 PM EDT
SEATTLE (Reuters) - Boeing Co., the world's largest aircraft maker, said Thursday that it would shut down its 757 narrow-body jet line in Renton, Wash., in late 2004 after 22 years for lack of orders, and take a third-quarter pretax charge of $184 million.
The charge equates to 14 cents per share before taxes and covers costs that will be incurred through 2005. Analysts polled by First Call were expecting third-quarter earnings of 37 cents a share.
Boeing's Seattle-based jetliner unit delivered more than 1,000 of the mid-sized 757s since 1982, but airlines in recent years have instead bought the smaller and cheaper 737 model as well as jets from rival Airbus SAS.
Boeing (BA: Research, Estimates ) is also developing a larger jet, the proposed wide-body 7E7, which would seat 200 to 250 passengers, roughly matching the 757's capacity, but would fly farther with a more comfortable cabin environment.
Earlier Thursday long-time Boeing customer Continental Airlines said it would take delivery of five 757-300s on order but would convert orders for six more to 737-800s.
Boeing's Web site lists orders for only 18 of the 757s, including Continental's 11, and the jet maker has been delivering just one or two 757s per month this year.
Excluding jets inherited with its 1997 purchase of rival McDonnell Douglas, Boeing has not shut down a jet line since 1991, when it finished building a smattering of military versions of the venerable 707.
Prior to that Boeing's last closure was the 1984 shutdown of the 727 tri-jet.
Aircraft maker will discontinue the production line by 2005, take pretax charge of $184M.
October 16, 2003: 6:39 PM EDT
SEATTLE (Reuters) - Boeing Co., the world's largest aircraft maker, said Thursday that it would shut down its 757 narrow-body jet line in Renton, Wash., in late 2004 after 22 years for lack of orders, and take a third-quarter pretax charge of $184 million.
The charge equates to 14 cents per share before taxes and covers costs that will be incurred through 2005. Analysts polled by First Call were expecting third-quarter earnings of 37 cents a share.
Boeing's Seattle-based jetliner unit delivered more than 1,000 of the mid-sized 757s since 1982, but airlines in recent years have instead bought the smaller and cheaper 737 model as well as jets from rival Airbus SAS.
Boeing (BA: Research, Estimates ) is also developing a larger jet, the proposed wide-body 7E7, which would seat 200 to 250 passengers, roughly matching the 757's capacity, but would fly farther with a more comfortable cabin environment.
Earlier Thursday long-time Boeing customer Continental Airlines said it would take delivery of five 757-300s on order but would convert orders for six more to 737-800s.
Boeing's Web site lists orders for only 18 of the 757s, including Continental's 11, and the jet maker has been delivering just one or two 757s per month this year.
Excluding jets inherited with its 1997 purchase of rival McDonnell Douglas, Boeing has not shut down a jet line since 1991, when it finished building a smattering of military versions of the venerable 707.
Prior to that Boeing's last closure was the 1984 shutdown of the 727 tri-jet.