NEW YORK (Reuters) - Boeing Co said on Wednesday it was sticking with the troubled lithium-ion battery technology that this month grounded its high-tech 787 Dreamliner, and that the grounding had no significant financial impact on its 2013 forecast.
Boeing said it will speed up production of the new plane as planned, responding to revelations that the battery has had more problems than previously disclosed.
CEO Jim McNerney said it was "business as usual" and that the company also had not advised suppliers to slow down their shipments of pieces of the 787, the most widely outsourced jet in the company's 97-year history.
"Nothing that we have learned has told us that we have made the wrong choice on the battery technology," McNerney said on a conference call with analysts and journalists.
"We feel good about the battery technology and its fit for the airplane. We have just got to get to the root cause of these incidents and we will take a look at the data as it evolves, but there is nothing that we have learned that causes us to question it at this stage."
The probe into the cause of two burnt batteries this month involves hundreds of experts from Boeing and outside the company but is "highly compartmentalized" and "it's not drawing any critical resources from any other growth programs we've got," McNerney added.
"Our plan is to continue production of the 787 and to continue the development of the wide-body airplanes," McNerney said.
The statements came as Boeing posted higher-than-expected profit.
Its shares were up 1.2 percent at $74.52.
Aviation safety agencies in the United States and Japan are investigating what caused lithium-ion batteries to burn on two 787 passenger jets earlier this month, prompting the worldwide grounding.
Boeing has since halted 787 deliveries, and analysts have raised concerns about the cost of the grounding and fixing the battery problem on about 125 jets that Boeing has built so far.
But Boeing released a forecast for 2013 that included no significant impact from the 787.
The company said it expects to deliver at least 60 Dreamliners in 2013 -- fewer than the 80 jets or more that some analysts expected -- but a figure that implies a four-month delay in delivery, since Boeing is making five 787s a month.
McNerney said Boeing still plans to increase 787 production to seven a month by mid-year and 10 a month by year-end.
The new production forecast raised some eyebrows. Russell Solomon at Moody's Investors Service was forecasting 100 787 deliveries, and said Boeing's forecast of more than 60 was "significantly weaker than we had expected."
Concern about the battery rose on Wednesday after Japan's two biggest airlines said they had repeatedly replaced sub-par lithium-ion batteries on their Dreamliners in the months before the two incidents that led to the 787 groundings.
The comments from All Nippon Airways Co Ltd, the biggest 787 customer to date, and Japan Airlines Co Ltd indicated problems with the battery system reliability long before one caught fire on a JAL 787 at Boston's Logan Airport on January 7. A second was badly charred and melted on an ANA domestic flight a few days later, prompting the pilot to make an emergency landing and evacuation.
The two airlines operate 24 of the 50 787s in service. United Airlines is the only U.S. carrier currently flying the 787.
McNerney said the earlier battery replacements were not made because of safety concerns.
"There's been no incidents that we're aware of where a battery has been replaced for any sort of safety concerns," he said. "It's a replaceable unit designed to be replaced and a matter of routine maintenance."
He said the replacement rate had been "slightly higher" than predicted.
McNerney declined to give any cost estimates for the 787 problems or discuss the investigation in any detail. The NTSB, which is leading the investigation in the U.S. has not yet established a cause for either of the two battery incidents.
NET FALLS, STILL BEATS
Meanwhile, Boeing said net income fell to $978 million, or $1.28 per share, in the fourth quarter, from $1.39 billion, or $1.84, in the year-ago period, when it posted a special tax gain.
Analysts expected earnings of $1.19 a share.
Ken Herbert, an analyst at Imperial Capital, said wider profit margins from Boeing's commercial airplanes unit helped the company beat estimates, even as defense revenue declined slightly.
But he was disappointed by the 2013 profit outlook of $5.00 to $5.20 a share, compared with his target of $5.60. The figures include pension charges.
The consensus Wall Street estimate was $5.13 a share for 2013, according to Thomson Reuters I/B/E/S.
Total revenue for the quarter rose 14 percent to $22.3 billion.
The company said it booked 394 net aircraft orders in the quarter, adding that its total order book was nearly 4,400 planes valued at $319 billion, a record tally. In the third quarter, it recorded 369 net orders and had an order book of about 4,100 airplanes valued at $307 billion.
For the first time, Boeing released so-called core results, which exclude most pension expenses that are part of standard accounting measures. Boeing said core earnings rose 9 percent to $1.84 billion in the quarter from $1.69 billion a year ago.
Core earnings per share fell 24 percent to $1.46 from $1.92, but the year-earlier figure included a one-time tax benefit of about 52 cents a share.
Boeing said the new measures better reflected its operating performance by factoring out market fluctuations and interest rate assumptions that can make pension expenses change significantly from quarter to quarter.
(Reporting by Alwyn Scott; Editing by Jeffrey Benkoe and Marguerita Choy)
Source: http://news.yahoo.com/boeing-profit-drops-sees-no-significant-impact-787-125728755--finance.html
justin tv justin tv Sarah Savage Jaimie Alexander Army Navy Game john lennon leann rimes
Justin Bieber really loves his fans, appearing to grab a teen’s left breast as they posed for a picture together. The girl in the photo with Bieber smiled for the cameras, but said things are not as they appear on her Twitter page. The teen girl, who tweets under the handle JocelynnBieber, took to the ...

For the most part of the previous week the dollar was trading in narrow ranges against European currencies, and only in the end of trading session it started showing some preferences. As a result ?green back? fell against the euro and strengthened against the pound. At the beginning of trading session American currency came under pressure against the yen, but till the end of the week it leveled all losses and fixed ?profit?. A single currency was supported by economic data, mostly indexes on Germany and EU, and low-interest loans of the CB of outlying countries. And the pound came under pressure because of investors? unconfidence in stability of the positions of British CB concerning easing program, which testified to transparent economic growth as a result of weak economic statistics. There were a few US economic statistics, which showed as usually conflicting results of economic indexes. The US production activity worsened according to the data from regions ? Chicago PMI just got revised down, under the level of 50.0, according to the report of the Richmond FRS for January, the index fell to -12 from +5 a month earlier, Kansas City FRB index fell for the third month in succession. But, the US PMI, researched by the Markit, rose to the level of 56.1 in January. Houses sale fell by 7.3% m/m in the housing market, but it is obvious that 20.0% y/y rise smoothed over the situation, leaving positive emotions concerning the housing market?s dynamics. According to the employment rates index, a number of unemployment insurance claims decreased two week in succession, but in this case there are some doubts about its authenticity, because of misrepresentation of economic data at the beginning of the year. This week mews package is rather rich in important information. It might seriously influence the market?s mood. First of all, it includes the topic of the US employment rates, represented by the labor market report for January, preliminary GDP data for the 4th quarter and publication of the protocols of the last FOMC meeting. Forecasts expect positive results, a number of working places is expected to increase by +156/160 thousands, and the main economic index is also expected to rise to by +1.3% q/q. It can support the dollar if the released results do not disappoint the market. Concerning the protocols, on the threshold of publication of the economic data, it is possible that dollar selling might be observed as there are strong expectation which testify to mild policy of the EU Central Bank. But, signs of conflicts between the members of the committee might amend the situation.






Loyalty has gone out the window, a new Deloitte survey finds. Only eight percent of survey respondents say that they always stay at the same hotel brand, while just 14% say they always fly the same airline.