Boeing Ups Production - TheStreet

Boeing Ups Production

Shares in 2010 Dow leader Boeing were rising Tuesday after the company said it will boost 737 production.
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SEATTLE (

TheStreet

) -- Shares in 2010 Dow leader

Boeing

(BA) - Get Report

were rising Tuesday after the company said it will boost 737 production.

In early afternoon trading, Boeing stock was trading at $66.90, up $2.08 or about 3%. For the year, Boeing is up about 23% and is one of just four Dow stocks with double-digit gains.

After a recent series of hints that it would raise 737 production, the company announced it would take the rate from a planned 34 airplanes a month to 35 per month in early 2012. The move follows a May announcement of an increase from 31.5 aircraft per month to 34. "Today's announcement acknowledges the anticipated long-term growth in this market segment and the continued pressure to raise airplane output to match expected market demand," Boeing said Tuesday in a prepared statement.

"Boeing's decision to increase production on the 737 for the second time in just a month shows that it wants to fulfil demand from customers who obviously are finding better funding sources to take advantage of a traffic recovery," said Saj Ahmad, who blogs about aircraft makers at

FleetBuzzEditorial.com.

-- Written by Ted Reed in Charlotte, N.C.