Boeing Likes Order Outlook

Boeing(BA) reported a fourth-quarter loss, forecast 2009 earnings below analyst estimates and plans 10,000 layoffs, but the company said its bulging order book offers protection from the global recession, at least for the current year.

"We have long-term order books with financing arranged12 to 18 months in advance (and) we have significant overordering," said CEO James McNerney, on an earnings conference call. "But that doesn't mean that longer term we're immune from fundamental changes in demand, fundamental changes in the credit markets.

Boeing declined to issue 2010 guidance. "There's no questions things could happen as things move around," McNerney said. "We're not naive to the fact that even though we have it in the backlog and under contract, that there can't be some uncertainties."

Boeing expects to deliver 480 to 485 commercial aircraft this year, up from 375 in 2008, but below a July estimate of 500 to 505 aircraft. The backlog at Boeing Commercial Airplanes rose 9% last year to a record $279 billion.

For the current year, the company said it expects earnings of $5.05 to $5.35 a share on revenue of $68 billion to $69 billion. Analysts surveyed by Thomson Reuters currently estimate earnings of $5.68 a share on revenue of $68.5 billion. CFO James Bell said the new guidance assumes that deferrals or cancellations will occur but that the excess orders will absorb most of the impact.

Nevertheless, Boeing said it will reduce its workforce this year by 6% or 10,000 positions, including a previously announced reduction of 4,500 positions at Boeing Commercial Aircraft. The jobs will be eliminated "through a combination of attrition, retirements and reductions," McNerney said.