Boeing Updates Commercial Airplane-Production Progress

Boeing Commercial Airplane Group (BCAG) continues to stabilize production of 7-Series jetliners.

In preparation for the next production-rate increase in April, BCAG and its supplier team have maintained overall parts shortages, behind-schedule jobs and out-of-sequence work at levels at or better than the recovery plan announced last fall.

"Factory operations are, in general, getting back on track and overtime is down to below 17 percent from a high of more than 20 percent," said Ron Woodard, president --Boeing Commercial Airplane Group. "While the Boeing Commercial Airplane Group production-recovery plan continues, management remains focused on ensuring long-term production health across all of the group's programs and divisions."

Boeing intends to increase 747 production from four per month to five per month this summer; and the Next-Generation 737 from seven per month to 14 per month this spring. Total 737 production (all models) will increase from 21 per month to 24 per month at that time.

"Achieving near-term rate increases will present challenges. Managing the production situation in preparation for those rate increases is the daily focus of our organization," Woodard said. Woodard added that the Commercial Airplane Group's factories would be back on track in 1998, although process inefficiencies and work-arounds will continue until the entire production system is in balance.

Boeing plans to deliver approximately 115 commercial jetliners in the first quarter of 1998.


Certain statements in the financial discussion and analysis by management contain "forward-looking" information that involves risk and uncertainty, including projections for deliveries, sales, research and development expense and other trend projections. Actual future results and trends may differ materially depending on a variety of factors, including the Company's successful execution of internal performance plans; future integration of McDonnell Douglas Corporation; product performance risk associated with regulatory certifications of the Company's commercial aircraft by the U.S. Government and foreign governments; other regulatory uncertainties; collective-bargaining labor disputes; performance issues with key suppliers and subcontractors; government export and import policies; factors that result in significant prolonged disruption to air travel worldwide; global trade policies; worldwide political stability and economic growth; changing priorities or reductions in the U.S. Government defense and space budgets; termination of government contracts due to unilateral government action or failure to perform; and legal proceedings.