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Machinist Strike Weighs on Boeing 3Q Profits

Boeing announced Wednesday morning third-quarter earnings of 96 cents a share on a net profit of $695 million.

Profits for the quarter declined 38 percent. Revenues for the quarter were $15.29 billion, a 7 percent dip.

Boeing Headquarters
Boeing Headquarters

Analysts were expecting results of around 98 cents a share .

The company said that its results were hit by an ongoing machinists' strike and supplier production challenges on customer-furnished galleys for certain wide-body airplanes. Those items reduced third-quarter commercial airplane deliveries by approximately 35 units and net earnings by an estimated $0.60 per share, the company said.

"While the suspension of commercial airplane deliveries had a major impact on the quarter, we effectively executed the remainder of our business and kept our focus on the strong balance sheet we have built over the past few years," said Chairman, President and CEO Jim McNerney, in a statement. "That balance sheet, along with our broad-based, record $349 billion backlog, gives us exceptional flexibility for weathering an extended work stoppage and for adapting to circumstances that may arise from the global financial crisis and softening global economy."

The aircraft maker said its backlog grew to a record $349 billion. The plane maker and defense contractor said it would not update its financial outlook until after the end of the strike by its largest union, now in its seventh week. The two sides are set to resume talks on Thursday.

  • Read the full earnings release here ...