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10% Margin? They wish. Boeing is losing $25 million for every 787 it delivers [1]. Boeing investors would be ecstatic to get a 1% margin right now. [1] http://
by twistedpair 11y ago
10% Margin? They wish. Boeing is losing $25 million for every 787 it delivers [1]. Boeing investors would be ecstatic to get a 1% margin right now.
[1] http://www.seattletimes.com/business/boeing-aerospace/will-787-program-ever-show-an-overall-profit-analysts-grow-more-skeptical/ http://www.seattletimes.com/business/boeing-aerospace/will-7...
- dredmorbius 11y agoHow much of that is fixed-cost accounting loss? Aircraft have high design costs (figure for the '87 is above), but the actual manufacturing costs should be ... somewhat reasonable. I have a hard time imagining Boeing would be selling the aircraft if they weren't recovering their marginal costs.
- mikeyouse 11y agoCoincidentally, Boeing's being investigated by the SEC for their bizarre program accounting to answer this exact question. http://www.seattletimes.com/business/boeing-aerospace/report-boeing-faces-sec-probe-of-dreamliner-747-accounting/ http://www.seattletimes.com/business/boeing-aerospace/report... The "never make a profit" line is probably a tax-deferral strategy which is reflected by their stock price increasing ~100% in the past 5 years. Not exactly the performance you'd expect of a floundering company.