Halfway mark

Boeing has announced its second quarter 2007 performance results. And the report shows continued strong growth.

For Commercial Airplanes, our backlog grew to a record $208 billion in Q2. We received 360 gross orders and delivered 114 airplanes in the quarter. The backlog is a reflection of the growth we’re experiencing in virtually all of our commercial airplane models. Clearly our product strategy is producing strong results in the market.

As has been the case with the past several quarters, a key piece of information analysts look for during the quarterly earnings report is how we’re doing on the 787 program. And as Boeing CEO Jim McNerney stated this morning, while the Premiere event earlier this month was a great success and a celebration of the team’s progress, we have a lot of work ahead of us.

Since the rollout we’ve continued installation and testing of the systems on the airplane. Final assembly work is underway on airplane number two, and our supplier-partners are working all the way up to airplane number seven at the moment.

It was reported during our earnings announcement that we’ve increased our R&D guidance for 2007. We think this is absolutely the right thing to do to make sure the Dreamliner is delivered as promised. Keeping our commitments to our customers is our number one priority.

We’re targeting the 787 first flight to occur by the end of September and we continue to expect first delivery in May 2008 as planned.

While we continue to manage weight and schedule challenges, and pressures regarding supplier performance, the market response to this airplane remains unprecedented. We have 683 orders from 47 customers, something no other program has achieved at this point in its development.  

Other milestones of the second quarter included the delivery to Lion Air of the first 737-900ER, and the certification of the Dreamlifter Large Cargo Freighter. The 787 Premiere itself took place after the end of Q2, but certainly all of the work and accomplishments on the program in the past quarter led to that successful rollout event a couple of weeks ago.

At the beginning of the year we set the bar pretty high for 2007 and 2008, and we continue on track. BCA projects between 440 and 445 airplane deliveries this year. Airplane deliveries in 2008 are expected to be between 515 and 520 – with delivery of more airplanes expected in 2009 than in 2008.

Still ahead are firm configuration of the 747-8 Intercontinental, and the results of the Air Force tanker competition. Not to mention the start of flight test for the 787.

As we’ve said before here in the blog, it’s a lot to accomplish. And more reason than ever to continue to keep our focus as we move forward.

Comments (9)

Todd Cohen (Philadelphia):

I have been a devoted Boeing guy for years! I look forward to the Blog entires and just looking at the sit in general. I was a private pilot, so flying is part of my DNA.

I am very happy at how well Boeing is doing. I have followed the 787 program from the very beginning and I am trying to figure out how to be on an introduction flight on a launch airline. I would be satisfied just to see one up close!

Keep the positive blog entries coming! I look to Boeing to always take the high road when it comes to the competition.

Tim Allen (Orange City, Iowa, USA):

This is a great blog, I love reading about the fortunes of Boeing. That, and I'm really excited about the 787. However, I am curious as to whether the Flight Test Journal will make a comeback for the 787 flight testing. It was fascinating reading about the 777 flight tests, however, it was "only" an upgrade to an existing model. I would love to read about the test flights of a brand new design.

-----

Tim,

We do plan a Flight Test blog for the 787. Stay tuned.

- Randy

Chris C (South Africa):

Well-done Boeing for building the finest, most efficient, and market-preferred commercial airplanes in the world! Your market strategies, products, people, and customer/passenger/investor/environmental approaches are right! Your Q2 performance results are superb…an excellent example of Boeing’s fine Working Together philosophies.

With the firm design freeze for the phenomenal 747-8 Intercontinental nearing, these are very exciting times for this amazing airplane programme. The 747-8 will be the preferred airplane in the large airplane arena, and with its industry-leading efficiencies/economics and performances, this airplane rightly so is, The Shape of the Future.

I read in a 747-8I brochure the following: This is the new 747-8 Intercontinental (with picture accompanying the caption)…this is what success looks like. I could not agree more!! Keep up the stupendous work Boeing!

Everett (Beijing,China):

The report sounds good! But I think the Boeing Company can get more orders and deliver more airplanes. Try your best, Mr. NG!

Saj (London, UK):

Indeed, theres a lot of hard work ongoing and that just tells a small portion of the story for Boeing and the wider industry.

Crucially, getting the 787 in the air and delivered on time is what most people will focus squarely on- given the resources being put forward for the jet, the project is certainly ambitious, but equally attainable.

The backlog of widebody airplanes is a testimony that the long haul product portfolio is the better mix that airlines evidently require.

The 787 family will expand on that strength and offer far more than the competition, which, even after a half decade (or more!) delay brings no competitive advantage to airlines or customers.

Dave B (Windsor, CO):

So glad I bought Boeing stock a few years back. Looking forward to seeing the 787 in mainline service!

Anthony (Seattle, WA, USA):

It would be fantastic if Boeing were to sell the 787th Dreamliner prior to delivery of the first customer airplane and long before Airbus has sold 380 A380's or 350 A350's. Good Luck!

Ron Barth (New York):

I really enjoy reading your blog and wish you posted more often. I would also like to see more 'inside information' about the sales game that goes on with all the airlines.

There obviously seems to be a lot of demand for a 787-10. Is Boeing worried this would hurt the 777 sales? What would be the difference between a 787-10 and a 777 that the Emirates and Qantas seem to be clamoring for?

It seems they could order 100-150 planes or more for a launch order for such a model and push the 787 sales over 800 or even close to 900 and Boeing could break 1000 orders on the 787 this year.

Felix (Taiwan):

Talking about the 747-8 Intercontinental, are there any updates lately? Apart from the background, facts to its technical charcteristics. If the information is available, I would really like to read more about it.

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