Subscribe to our free daily newsletters
. 24/7 Space News .




Subscribe to our free daily newsletters



AEROSPACE
Boeing keeps tough line on Bombardier as earnings fall
By John BIERS
New York (AFP) Oct 25, 2017


Boeing strongly defended its tough stance in a trade dispute with Canada's Bombardier Wednesday, as it reported lower quarterly earnings in part due to unexpected costs on a military contract.

Boeing chief executive Dennis Muilenburg defended a complaint against the Canadian company over alleged illegal subsidies, a dispute that has deepened tensions between Canadian Prime Minister and US President Donald Trump.

"We like competition. It makes us better," Muilenburg said on an earnings conference call.

"We can win, but it's important that everyone plays by the same rules."

The comments came as Boeing reported an 18.7 percent drop in third-quarter earnings to $1.9 billion.

Revenues rose 1.7 percent to $24.3 billion.

Results were dented by $329 million in new unexpected costs on the KC-46 military refueling tanker due to changes as the venture moves into late-stage testing and certification. Boeing also booked expenses of more than $1 billion on the tanker in a series of announcements in 2015 and 2016.

Muilenburg said Boeing was in the home-stretch of the contract, which is ultimately expected to involve hundreds of aircraft over many years.

"We're not completely at the finish line, but we are clearly closing in," Muilenburg said.

Boeing's commercial division delivered more planes in the third quarter compared with the year-ago period, but the increase came from the narrow-body 737, which is less costly than some other models.

Revenues and profits in Boeing's military division declined, although analysts believe additional orders in defense should fuel growth in the coming period.

- Tough line on Bombardier -

The aerospace giant lifted its full-year profit forecast range by a dime to $11.20 to $11.40 per share, citing a lower-than-expected tax rate. There was no change to the forecast for revenue or commercial plane deliveries.

Heading into Wednesday's report, Boeing shares were up nearly 75 percent on the year. Analysts were generally upbeat on the results, despite the tanker charge.

"Although Boeing continues to throw off lots of cash and the business is well-positioned for growth in commercial airplanes... we think shares are overvalued," said Morningstar analyst Chris Higgins.

Shares ended down 2.9 percent at $258.42.

Muilenburg took an unwavering stance on the Bombardier controversy, which has led the Department of Commerce to propose heavy duties on Bombardier's new C-Series jetliners.

Bombardier last week reached an agreement with Boeing archrival Airbus on the C-Series planes that appeared to some observers to maneuver around the trade dispute by steering some of the work to Mobile, Alabama, where Airbus has operations.

But Boeing plans to press on with its complaint.

"Recent actions that Bombardier and Airbus announced are not actions that affect our gameplan," Muilenburg said.

Britain and Canada have threatened to halt military contracts to Boeing over the controversy. Delta Air Lines, a major customer of Boeing's, has vowed not to pay extra duties on Bombardier planes it has ordered.

"We're mindful that there are ripple effects," said Muilenburg, who emphasized that Delta remains a "very important customer" and expressed confidence the fight would not lead to devastating consequences with governments who are clients.

"We do think our long-term relationship with the UK and Canada will outlive this trade matter," he said.

AEROSPACE
Highly flexible wings tested
Edwards AFB CA (SPX) Oct 23, 2017
The subscale X-56A is scheduled for a series of research flights in November to prove enabling technology for designing aircraft with highly flexible, lightweight wings. The use of less structurally-rigid wings could be critical to future long-range, fuel-efficient airliners. A risk reduction flight Aug. 31 from Armstrong demonstrated that past challenges experienced during takeoffs and la ... read more

Related Links
Aerospace News at SpaceMart.com


Thanks for being here;
We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain.

With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords.

Our news coverage takes time and effort to publish 365 days a year.

If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.

SpaceDaily Contributor
$5 Billed Once


credit card or paypal
SpaceDaily Monthly Supporter
$5 Billed Monthly


paypal only

Comment using your Disqus, Facebook, Google or Twitter login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle

AEROSPACE
Plants and psychological well-being in space

Spacewalkers fix robotic arm in time to grab next cargo ship

NASA develops and tests new housing for in-orbit science payloads

Russia's space agency says glitch in manned Soyuz landing

AEROSPACE
Thruster for Mars mission breaks records

It's a success! Blue Origin conducts first hot-fire test of BE-4 engine

NASA awards launch contracts for Landsat 9 and Sentinel-6A

ESA role in Europe's first all-electric telecom satellite

AEROSPACE
Mars Rover Mission Progresses Toward Resumed Drilling

Solar eruptions could electrify Martian moons

MAVEN finds Mars has a twisted tail

Mine craft for Mars

AEROSPACE
Space will see Communist loyalty: Chinese astronaut

China launches three satellites

Mars probe to carry 13 types of payload on 2020 mission

UN official commends China's role in space cooperation

AEROSPACE
Myanmar to launch own satellite system-2 in 2019: vice president

Eutelsat's Airbus-built full electric EUTELSAT 172B satellite reaches geostationary orbit

Turkey, Russia to Enhance Cooperation in the Field of Space Technologies

SpaceX launches 10 satellites for Iridium mobile network

AEROSPACE
High field magnet at BER II offers Insights into a hidden order

Solid or liquid? Researcher proposes a new definition of glass

Dutch open 'world's first 3D-printed bridge'

Using space to study ultra-cold materials

AEROSPACE
Comet mission reveals 'missing link' in our understanding of planet formation

New NASA study improves search for habitable worlds

From Comets Come Planets

A star that devoured its own planets

AEROSPACE
Haumea, the most peculiar of Pluto companions, has a ring around it

Ring around a dwarf planet detected

Helicopter test for Jupiter icy moons radar

Solving the Mystery of Pluto's Giant Blades of Ice




Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News






The content herein, unless otherwise known to be public domain, are Copyright 1995-2017 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement