Boeing Mulls S. Carolina Production

CHICAGO (TheStreet) -- Boeing(BA Quote) says it will decide "over the next couple of weeks" whether to add a second 787 production line in Charleston, S.C., despite continuing problems in its far-flung program to develop the aircraft.

In the third quarter, Boeing continued to disappoint investors, reporting a loss of $1.6 billion. That loss broke down to $3.59 a share, including $2.46 a share related to 787 cost reclassification for the first three aircraft, and 99 cents a share for 747 charges related to delays brought on largely by the diversion of engineers to the 787.

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On an earnings conference call, CEO Jim McNerney described the 787 program model as "a bridge too far, leading edge kind of development, which is what we are trying to recover from right now." He added: "When you look back you see that we lost of some of the discipline, particularly in the context of outsourcing so much of the work."

Nevertheless, McNerney said continuing conflict between Boeing and the International Association of Machinists, which represents about 27,000 Everett, Wash., workers, requires consideration of a Charleston line. "There would be execution challenges associated with that choice, but keep in mind we have a pretty good-sized operation in Charleston today," McNerney said. The challenges would be "more than overcome by strikes happening every three or four years in Puget Sound," he said. "The company and the IAM have had trouble figuring it out between themselves the last few negotiations, and I've got to find a way to figure it out."