Boeing said today its 787 Dreamliner will finally make its first flight by the end of this year, with initial delivery expected in the fourth quarter of 2010.
Boeing, the number two aircraft manufacturer behind EADS unit Airbus, said it expects its 787 programme to eventually be profitable, but also plans to take a third-quarter charge to write off the cost of the first three test-flight planes, which it says have no commercial value because of extensive modifications.
The date of the first test flight has been delayed repeatedly because of production problems and a two-month labour strike compounding woes for Boeing as airlines put off orders amid a slump in air travel and as the company's defence unit faces uncertainty over future US budget spending.
The latest delay was in June, when Boeing said the plane would not fly as scheduled during the second quarter so it could reinforce a side-of-body section of the aircraft.
The June delay was the 787 project's fifth, with the first coming in 2007.
"While there is no question that the execution of this programme has had its challenges and there still is work to be done, the 787 and the fundamental innovation it represents remains on track to become a true game-changer for our airline customers," Boeing chairman James McNerney said.
The third-quarter charge will be a result of reclassifying costs from the first three test planes as research-and-development expenses versus programme inventory. The change will create an estimated pretax charge of $2.5 billion, or $2.21 a share, against Boeing's third-quarter results.
Analysts were expecting a profit of $1.21 a share for the third quarter, according to Reuters Estimates.
The revolutionary carbon-composite 787 has been lauded for its fuel-efficiency. About 850 of the planes have been ordered.
"We understand the need to make the best and safest aircraft possible and appreciate that delays due to engineering issues of the current nature must be solved in order to move forward," Japan's All Nippon Airways, the initial customer for the 787 which has 55 of the planes on order, said in a statement.
"However, as launch customer and future operator of the 787, the length of this further delay is a source of great dismay, not to say frustration," All Nippon added.
Boeing, which had said earlier this year that the first 787 deliveries to customers could occur in the first quarter of 2010, also said it projects achieving a production rate of 10 planes per month in late 2013.
While it is not selling the first three test flight 787 planes, Boeing said it still expected to market three other test-flight 787s.
Boeing shares were up 9.4 per cent, or $4.51, at $52.33 in afternoon New York Stock Exchange trading. Shares of 787 suppliers such as Spirit AeroSystems Holdings and Rockwell Collins also gained.
Boeing shares have risen about 18 per cent since June 23rd, when the latest 787 delay was announced.
Reuters