Completing successful program after delivering more than 1,000 airplanes over 20 years; breakthrough efficiency supported growth in air travel
The Boeing Company [NYSE: BA] announced today that it has decided to complete production of the 757 jetliner in late 2004.
"This decision reflects the market reality for the 757 as well as the growth in range and seating capacity of our market-leading Next-Generation 737 family," said Boeing Commercial Airplanes President and Chief Executive Officer Alan Mulally. "Over the long term, the increased capabilities of our newest 737s and the exciting potential of the 7E7 will fulfill the market served by the 757."
Consistent with prior disclosed estimates, Boeing will recognize a pre-tax charge in the third quarter of $184 million, or 14 cents per share, principally related to termination and shutdown costs at Boeing Commercial Airplanes. Most of the cash expenditures related to the charge will occur through 2005.
Over the past two decades, more than 1,000 757s have been delivered to 55 customers around the world. The worldwide fleet of 757s will continue to benefit from superior fleet support provided by Boeing Commercial Airplanes.
"Thousands of people around the world are to be thanked for making the 757 a success story in aviation over the past 20 years. It will continue to provide great value to the world's passenger airlines and cargo operators in service for many years to come," Mulally said.
The Boeing Company will release its third quarter results October 29th.
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