Military

Boeing Slices 747 Production -- Again

Boeing 747
Courtesy of Boeing Co.
For the second time this year The Boeing Co. (NYSE: BA) announced Friday that it will cut its production rate for the company’s venerable 747-8 jumbo jet. Production will be cut back to 1.5 planes a month from the previously announced cut in April to 1.75 planes a month. At the beginning of the year Boeing had planned production for the 747-8 at 2 planes a month.

Lower market demand for the planes both as passenger and freight carriers is once more the reason Boeing gives for the cutback. The number of orders for the 747-8 has fallen from 110 in April to 107 currently and Boeing has delivered a total of 56 of the planes to date. As of April’s announcement Boeing said it had delivered 46 747-8s.

A company executive said:

This production adjustment better aligns us with near-term demand while stabilizing our production flow, and better positions the program to offer the 747-8’s compelling economics and performance when the market recovers. Although we are making a small adjustment to our production rate, it doesn’t change our confidence in the 747-8 or our commitment to the program.

The 10 planes delivered since April were built at the original production rate. Deliveries at the new rate are expected to begin next year.

Boeing’s stock is up about 0.1% Friday, at $122.48 after posting a new 52-week high of $122.81 earlier in the day. The 52-week low is $69.30.

Essential Tips for Investing (Sponsored)

A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.