Boeing Co. dashed expectations Wednesday that the world’s largest aircraft manufacturer will solve its problems anytime soon, warning of delays in making its best-selling 737 jetliners this year and a possible slowdown in Asian demand for its jumbo 747s next year.
The Seattle-based company said for the first time that the economic turmoil in Asia may force it to make fewer 747s in 1999.
Meanwhile, Boeing has had to rework its updated 737s–by cutting new emergency exits, for example–to meet requirements by U.S. and European authorities. Lengthy flight testing and shortages of parts and labor have added to the bottlenecks.
“They’re still in the valley and not quite sure when they’re coming up on the other side,” said Van Harissis, a portfolio manager with Phoenix Investment Partners.
Boeing has delivered 33 updated 737s since the jetliner’s introduction late last year instead of the 63 it originally planned, senior vice president Ron Woodard said in a conference call with reporters.
As Boeing struggles to iron out its manufacturing woes, its European rival, Airbus Industrie, has pulled ahead in terms of winning orders. Airbus received orders for 185 aircraft in the first quarter, compared with 116 orders received by Boeing, according to trade publication Aerospace Daily.
In its monthly production update, Boeing said the Asian crisis may force a cut in production, especially of 747s, by the middle of next year. A decision will be made during the next month.
