Summary: Jet maker Boeing Co.'s 3Q results were not the jet-setting figures the company had hoped for. The Chicago-based company posted a 31 percent decline in profits Wednesday; it also raised concerns regarding its still-in-development 787 commercial airliner, saying hundreds of millions more were needed to reduce the weight of the plane before its first test flight. CEO Jim McNerney tried to assuage investor worries yesterday saying the fuel-efficient plane "will be done on time." But wary investors pushed Boeing's stock lower despite raised guidance for 2007 earnings and revenue - reflections of a prosperous commercial plane business. In composite trading yesterday, shares fell $2.73, or 3.3 percent, to close at $80.86.
Related links: Boeing Q3 2006 Earnings Call Transcript • Airbus' Loss in Market Share is Boeing's Gain • Boeing: Get Ready to Fly • Embraer Poised to Capitalize on Airbus' Jumbo-Jet Sized Difficulties • Boeing's Outsourcing for the 787 Dreamliner • Boeing is Set for Takeoff • Boeing Bolsters R&D for New 787 to Avoid Delays [WSJ]
Potentially impacted stocks and ETFs: Embraer-Empresa Brasileir de Aero. (ERJ) • iShares Dow Jones US Aerospace & Defense (ITA), PowerShares Aerospace & Defense (PPA), Vanguard Industrials ETF (VIS)
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