Financial results and news out of Boeing (NYSE:BAC) has been getting worse by the month as the company delay its new 787 and a revamped version of the 747.

Today Boeing released results for the third quarter and sharply cuts it forecasts.

While revenue rose 9% to $16.7 billion, the company lost $2.2 billion compared to a profit of $1.1 billion in the same period last year. EPS for the third quarter were ($2.23) compared to $.96 last years. Last year’s strike and supplier production problems reduced year-ago revenue by an estimated $2.1 billion and earnings by an estimated $0.60 per share. The current quarter’s revenue growth was not what it seemed.

The cut in the company’s forecasts for the year was breathtaking. Earnings guidance for 2009 has been adjusted to between $1.35 and $1.55 per share, from $4.70 to $5.00, to reflect the 787 and 747 impacts.

It is clear now that the board of Boeing must ask Jim McNerney to leave as CEO. He has already pushed out his head of commercial aircraft which leaves no one else for the board to blame.

Shareholders have paid an awful price for McNerney’s follies. During the last two years, Boeing shares have dropped 43%. The delays in launching planes have been abundant. Boeing needs new management.

Prediction: McNerney is out by year’s end.

Douglas A. McIntyre

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