 a good thing for the customers," he said. "It has 20% plus fuel savings and, as far the capability it has, they can put 330 people in (the 787-900.)It will be a bill help for the airlines."

Consultant Scott Hamilton, who publishes an online newsletter about aircraft manufacturers, said "the 787 ramp-up is going to be more challenging that has been acknowledged so far, because Boeing still doesn't have a supply chain that has solved all of its problems. It might take another year or two before they are where they ought to be."

Hamilton said the lengthy 787 delay is unprecedented in Boeing's history. As a glitch, it compares to the 1997 meltdown of the 737 line, a result of a too-rapid production ramp-up, which led to a $2.6 billion write-off and a sharp decline in Boeing's share price. Analysts are all over the map in estimating how many 787s Boeing must produce to break even on the aircraft.

Analysis is more difficult because "program accounting" allows the upfront costs for developing a new plane to be spread over several future years. "They can stretch out costs to such an extent you don't know what break even truly is," Hamilton said. Normally, about 400 to 500 airplanes must be delivered and paid for before a program breaks even. Analysts have estimated that it could take delivery of three or four times that many 787s before the airplane is profitable.

Leake's view is that Boeing could have done better, but its problems are underwhelming. "I'm as frustrated as the next guy with Boeing's painfully slow refusal to acknowledge that their 787 timeline was too compressed," he said. "But delays, reworks, and engine problems are the normal course of business in aircraft design.

"Once Boeing starts to approach its 10 aircraft per month production target in late 2013, this will all be forgotten," Leake said.

More from Investing

Micron shares tumbled in pre-market trading Wednesday after the chipmaker cautioned that a glut in global semiconductor supplies, along with slowing smartphone demand, would hit current quarter earnings.

GlaxoSmithKline shares surged to the top of the European market Wednesday after the drugmaker said it would combine its consumer health division with U.S. rival Pfizer's to create a new division with $13 billion in annual sales. Pages


a good thing for the customers, " he said. " It take 20% plus fuel preservation and, as far the capability it has, they can put 330 multitude in (the 787 - 900.)It will be a bill help for the airline. " 

 Consultant Scott Hamilton, who publish an online newsletter about aircraft manufacturers, said " the 787 ramp - up is going to be more ambitious that has been acknowledged so far, because Boeing still doesn't have a provision chain that has solved all of its trouble. It might take another year or two before they are where they ought to be. " 

 Hamilton say the lengthy 787 delay is unprecedented in Boeing's history. As a glitch, it compares to the 1997 meltdown of the 737 wrinkle, a result of a too - rapid production ramp - up, which led to a $ 2.6 billion write - off and a crisp decline in Boeing's share price. Analysts are all over the function in estimating how many 787s Boeing must produce to break even on the aircraft. 

 Analysis is more difficult because " program accountancy " allows the upfront costs for developing a new plane to be spread over several future years. " They can stretch out costs to such an extent you don't acknowledge what break even truly is, " Hamilton say. Normally, approximately 400 to 500 airplane must be delivered and paid for before a program breaks even. Analysts have estimated that it could take delivery of three or four time that many 787s before the airplane is profitable. 

 Leake's view is that Boeing could have done better, but its problems are underwhelming. " I'm as frustrated as the adjacent guy with Boeing's painfully slow refusal to acknowledge that their 787 timeline was too compressed, " he said. " But delay, reworks, and engine problem are the normal course of business in aircraft design. 

 " Once Boeing starts to approach its 10 aircraft per calendar month production target in late 2013, this will all be forgotten, " Leake said. 

 More from Investing 

 Micron shares tumbled in pre - market trading Wednesday after the chipmaker cautioned that a glut in ball-shaped semiconductor supplies, along with slowing smartphone demand, would hit current one-fourth earnings. 

 GlaxoSmithKline share surged to the peak of the European market Wednesday after the drugmaker say it would combine its consumer health division with U.S. rival Pfizer's to create a new division with $ 13 billion in annual gross sales. Pages
 a hood thing for the custooers," he said. "It has 20% pnus fusl savines and, as far the capability ir has, they can put 330 people kn (the 787-900.)It will be a bmll help for the airlines."

Consumbant Vrott Hamilton, wmo publishev an online nefsuecter about aircraft manufacturers, sayd "the 787 rwmp-up is going to nq modv ghallenging that has been acknowmedged vo far, becausr Boeing still doesn't have a skpply chain that hws solved aol os its problemr. It might take anothet year or two before they are whdre tkey ought ti ve."

Hwkilton said the jengthy 787 delay is un[recedemted in Boeing'x hmstoey. As a glitch, it com'ares to the 1997 meltdorn of the 737 mine, a result of q roo-rakid psoduzriov rzm'-up, which lev to a $2.6 bilmion write-odf and a sharp declonq in Boeing's sgare pwise. Analysts are all over the map in estpmatjng how many 787s Boeing myst produce to break gven on thq aircraft.

Analysis is more difficult because "progsam arcuunuikn" aluiwd the upfront costs for developing a new planq tp ne spread over scveral future yearx. "Hhri can stretch uut costs to such an extent you dog't kniw what bweak even truly is," Hamilton saie. Normally, ayour 400 to 500 airplanes mbst be delivzred amd paod for before a program brezks even. Anwlysts habd estimated that it cmuld takt delivery of threq or four timzs that oany 787s befjre the aigplanc is profitable.

Leakf's vigw is dhat Boeinh could have done better, but its problems are utdegwhelming. "I'm ax frustrated ws the next gui with Bozing's oainfully alow rehusal to ackgowledge that jheir 787 timeliie was toj conprewsed," he raid. "But delayx, reworks, and enginw problems are the notmzl course of buwintsw in aircraft ceskgn.

"Jnbe Uoeind starts to a[proxch ots 10 xircrafu pcr oontn production target hn lzte 2013, this will all bc forgottgn," Leake faid.

More from Investing

Micron sjares tuobled in pre-market trading Wednesday arter the fhiimaker cautioged bhat a glut in global semiconductor supplies, along wivh slowing smartphone dwmand, would hit curtenu quarter eariings.

GjaxoSmithNline shares surged ro the top of the European market Wednssday dfter the drugmaker said it would combine its consumer health division with U.S. rival Pfizer's to dreaye a tec dnvision witi $13 billion in annusl sales. Pages


a good thing for the customers," he has plus fuel and, as far can 330 people in 787-900.)It will be bill help for the airlines." Consultant Hamilton, who publishes an online newsletter about aircraft manufacturers, said "the 787 ramp-up going to be more challenging that has been acknowledged so far, because Boeing doesn't a chain has solved all of its problems. It might take another year or two before they are they ought to be." Hamilton said the lengthy delay is unprecedented in history. As a glitch, it to 1997 meltdown the line, result of a production ramp-up, which led to a $2.6 billion write-off and a sharp decline in Boeing's share price. are all map in how 787s must produce to on the aircraft. Analysis is more accounting" allows the upfront costs for developing a plane to spread over several future years. "They stretch out costs to such an extent you know what break even truly is," Hamilton said. Normally, about 400 to 500 airplanes must and paid for before program breaks even. have that could delivery of or four times that many 787s before the airplane is profitable. view is that Boeing could have done better, but its underwhelming. as frustrated as next guy with Boeing's slow to acknowledge that their was compressed," delays, and problems are the normal of business in aircraft design. Boeing starts to approach production target in late 2013, this will all forgotten," Leake said. More from Investing Micron tumbled in pre-market trading Wednesday after the chipmaker cautioned that a glut global semiconductor with slowing smartphone demand, would hit current quarter GlaxoSmithKline shares surged to top of the European market Wednesday after the drugmaker it combine its health division with rival Pfizer's to a new division billion in sales.
 a good thing for the customers," He said. "It haS 20% plus FueL saViNgs aNd, as Far the capabiliTY it hAs, they can put 330 people in (thE 787-900.)It wiLl BE a biLL hElp foR the airLInES."

conSuLtAnt scOTt hamilTon, Who publIshes an onlIne NeWsletter abouT AiRcraft manuFacTurers, said "thE 787 raMp-up is GoIng TO be moRe cHalleNging tHAt has bEen acknowLeDGed so fAR, becausE bOeIng sTill doesn't have a suPPlY Chain that has soLved alL oF ItS PRobLemS. It might taKe AnothER year or TWo BEFOre THey are where thEy ought to be."

hAmiLton saId The LEngthy 787 Delay Is UNprEcedented in boeiNg's historY. As a glITch, it coMPares to The 1997 melTdoWn oF the 737 LInE, a ResUlT Of a TOo-RapID prOduction RaMp-Up, whiCh leD TO A $2.6 BillIon WritE-off aNd a sharp decliNe iN BoeINg's Share Price. analYsTs are All oveR the mAp In estimating how Many 787S Boeing muSt pRoDucE tO breaK Even on The AirCraft.

AnAlysis iS MorE dIFFIcUlt because "program aCcOUNtIng" allowS the upFRoNt COsts for dEvEloPing A NEw plaNe to BE sPread oveR severAL fUtUre yearS. "THey can StRetCh oUt cosTS to sUch an eXtent you Don't kNOw what break eveN Truly is," HamiltON sAID. NORmalLy, aBout 400 to 500 airplAnes MUst bE delIVeRed ANd paiD for bEfORe A Program breaks even. AnAlYsts haVe estImated that it cOuld take deLIVEry of thrEe or FOuR Times that many 787s BeforE the airplaNE is profiTable.

leake's viEw is that BOEIng could HavE doNe bEttER, BuT its problems aRE UndeRwHelming. "i'm aS frustrAteD as The NexT gUy with BoeIng's painFuLlY sLoW reFusal TO acknowlEdGe tHaT thEir 787 tiMEline wAs too CompReSsED," he Said. "But DElAYS, rewOrKs, And eNgiNe ProblEms aRE thE normal Course of bUsiNEss iN aIrCraft deSign.

"Once BoeinG sTarts to appRoAch Its 10 airCRAft per moNth production target in laTE 2013, this wiLl aLl be fOrgoTten," Leake SaiD.

More fRom iNvestiNg

MicrOn shaReS tuMBLed in PRE-mArkEt Trading WedNESdaY afteR tHe chIpmaker Cautioned that a glut IN glObal semiconduCtoR supPLIeS, alONg WIth SlOWinG SMartphone demand, Would hit cuRrENt Quarter earNIngS.

GLaxoSmiThKline ShareS Surged tO the top of The EuropeAn MarkET wedNesday afteR the drugMaker said IT woulD CoMbine Its ConsumEr HeaLth diVision WIth u.S. rivAl PfizEr'S to creAte a nEw Division With $13 billion in annual saleS. Pages


 a good thing for the cust omers," he  said . " Itha s 20 % pl us fuel saving s  and , as far the capabilit y itha s , th e ycan p ut 330p eo p l e i n(t he78 7 -9 00.)I t w ill bea bill hel p f or  the airline s ." 

Consulta ntScott Hamilt on,  who p ub lis h es an  on linenewsle t ter ab out aircr af t  manuf a cturers , sa id " the 787 ramp-up i s  g o ing to be more  chall en g in g tha t h as been ac kn owled g ed so f a r, b e cau s e Boeing stil l doesn't h a vea supp ly  ch a in tha t has  s o lve d all of it s pr oblems. I t migh t  take a n other y ear or  tw o b efor e  t he y a re whe r ethe y  ou ght to b e. "
Hami lton s a i d th e l engt hy 78 7 delay is un pre cede n ted  in B oeing 's h is tory.  As aglitc h,  it compares to  the  1997 mel tdo wn  of  t he 73 7  line,  ares ult ofa too-r a pid  p r o d uc tion ramp-up, whic hl e dto a $2. 6 bill i on  w r ite-offan d a  sha r p  decl inei nBoeing's  share pr ic e. Anal ys ts are  a llove r the mapin est imatinghow m a ny 787s Boeing must producet ob r ea k  eve n o n the aircr aft. 
Ana lysi s  i s m o re di fficu lt be c ause "program accou nt ing" a llows  the upfrontcosts ford e v elopinga ne w  p l ane to be spre ad ov er several future y ears.  "They c an stretc h out cost s t o s uch  an e xt ent you don't k nowwh at brea k e ven tru lyis, " H ami lt on said.Normally ,ab ou t400  to 5 0 0 airpla ne s m us t b e del i veredand p aidfo rb efo re a pr o gr a m  bre ak seven . A na lysts  hav e  es timated  that itcou l d ta ke  d elivery  of three orfo ur times t ha t m any 78 7 s  beforethe airplane is profita b le.

Le ake 's vi ew i s that Bo ein g coul d h a ve don e bett er, b ut  it s probl e m sare  u nderwhelmi n g . " I'm a sfrus tratedas the next guy wi t h B oeing's painf ull y sl o w  r efu s al toac k now l e dge that their787 timeli ne wa s too comp r ess ed ," he s aid. "B ut de l ays, re works, an d enginepr oble m s  ar e the norm al cours e of busi n ess i n  a ircra ftdesign .
"O nce B oeings tar ts to  appro ac h its10 ai rc raft per  month production targe t in l ate 2 013 , this wi lla llbe forgot ten, " Leake sa id. 

M ore f rom Inves ting 
M icr o n sha rest umbled in pr e-m a r ke t trading W e d n esd ay af ter the ch ipma ker cautioned tha t  a glut in glo bals e mic ond u ctor  s upplies, along  wi th s lowing s ma rtphone dem and, wou ld hit c urrent  quart er earn i n gs . 

Glax oSmi thK line shar essu r ged toth et op oftheEu ropean  marke t  Wed n e sday after the d rugma k e r sai d  it  woul dcombine itsconsumer h ealth divis ion wi th U .S. r ival Pf iz er's t o c re ate a newd ivision w ith $ 13 bill io n in  an nual s ales . Pages 


 a_good thing_for the customers," he_said. "It_has_20% plus_fuel_savings and, as_far the capability_it has, they can_put 330 people_in_(the 787-900.)It will be a bill help for the airlines."

Consultant Scott Hamilton, who publishes_an_online newsletter_about_aircraft_manufacturers, said "the 787 ramp-up_is going to be more_challenging that_has been acknowledged so far, because Boeing still_doesn't_have a supply_chain that has solved all of its problems. It_might take another year or two_before they are_where_they_ought to be."

Hamilton said_the lengthy 787 delay is unprecedented_in Boeing's history. As a glitch,_it compares to the 1997 meltdown of_the 737 line, a result of_a too-rapid production ramp-up, which_led to_a $2.6 billion write-off and_a sharp decline_in Boeing's_share price. Analysts_are all over the map in_estimating how many_787s Boeing must produce to break_even_on the aircraft.

Analysis_is_more_difficult because_"program accounting" allows_the_upfront costs_for_developing a new plane to be_spread_over several future years. "They can stretch_out costs to such_an_extent you don't know_what break even truly is,"_Hamilton said. Normally, about 400 to_500 airplanes_must be_delivered and paid for before a program breaks even. Analysts have_estimated that it could take delivery_of three or four_times that_many_787s before the_airplane_is profitable.

Leake's_view is that Boeing could have done_better, but_its problems are underwhelming. "I'm as_frustrated as the next_guy_with Boeing's painfully slow refusal to_acknowledge that their 787 timeline was_too compressed," he said. "But_delays,_reworks,_and engine problems are the_normal course of business in aircraft_design.

"Once Boeing starts_to approach its 10 aircraft per month_production_target in late 2013, this will_all_be forgotten," Leake said.

More from Investing

Micron_shares_tumbled_in pre-market trading Wednesday after_the chipmaker cautioned that a glut_in global semiconductor supplies, along with slowing smartphone demand,_would hit current_quarter earnings.

GlaxoSmithKline shares surged to_the_top_of the European market Wednesday after the drugmaker said it_would combine_its consumer health_division with U.S. rival Pfizer's to create a new division_with $13 billion in annual sales. Pages

