This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Boeing to Add Assembly Line for 787

SEATTLE ( TheStreet) -- Boeing (BA - Get Report) says it will establish a second 787 assembly line in North Charleston, S.C., a blow to Washington state and the International Association of Machinists and a boost to the South Carolina economy.

Although Washington state officials mounted an intense effort to retain 787 production, South Carolina offered an incentive package, recently approved by the state legislature, and a non-union environment.

Boeing shares closed Wednesday at $47.22, down 53 cents. But about an hour after the close, and following the announcement of the Charleston site, shares were up 93 cents at $48.20.

In the third quarter, delays related to the 787 were a major drag on Boeing earnings. The company took a $1 billion pretax charge against the 747-8 freighter program, largely because of delays resulting from the deployment of engineers to the 787.

The company also took a noncash charge of $2.5 billion because it concluded it couldn't sell the first three 787 test-flight airplanes and therefore reclassified them from inventory to research and development expense. The net loss in the quarter was $1.6 billion.

On an earnings conference call last week, CEO Jim McNerney said Boeing remains unhappy with the continued threat of strikes by its IAM workers in Everett, Wash.

"Establishing a second 787 assembly line in Charleston will expand our production capability to meet the market demand for the airplane," said Jim Albaugh, CEO of Boeing Commercial Airplanes, in a prepared statement. He said the decision "allows us to continue building on the synergies we have established in South Carolina" and will enable Boeing to ramp up to production of ten 787s a month.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
BA $144.16 -0.35%
AAPL $128.81 -0.11%
FB $78.84 -0.19%
GOOG $541.35 0.64%
TSLA $231.25 2.30%

Markets

DOW 18,093.55 +69.49 0.39%
S&P 500 2,116.15 +7.86 0.37%
NASDAQ 5,024.3010 +18.91 0.38%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs