Standard & Poor's said Friday it remains concerned about the potential for more order cancellations and deferrals at Boeing Co. that could force the airplane maker to scale back production of models other than its new 787 next year.
The agency said an announcement by Boeing on Thursday that its long-delayed 787 would be ready for its inaugural test flight by the end of 2009 and that the first of the planes would be delivered by the end of 2010 — more than two years behind schedule — did not affect its ratings. It said "a delay of this magnitude" already was incorporated into its recent downgrade Boeing's ratings.
But besides the 787 program, a key concern remains the potential for further order cancellations and deferrals that could result in production cuts in 2010 for Boeing's other products, especially the 737, Standard & Poor's said in a statement.
Boeing has struggled with slumping orders for its planes due to weaker demand for air travel and cargo services. In response to tough economic conditions and tight credit markets, some airlines have had to cancel or defer orders for new planes.
The 787, a hot-selling aircraft built for fuel efficiency with lightweight carbon composite parts, has been delayed five times. That's damaged the company's credibility and driven up costs.
"The additional delays on the 787 increase the possibility that airlines that have orders for the 787 and other models could request deferrals of their non-787 orders, or other considerations that could affect the company's revenues and profitability," the agency wrote.
Boeing also said Thursday it will book a pretax charge of $2.5 billion, or $2.21 per share, in the third quarter. That includes a write-off for the first three of six test planes. Boeing had planned to refurbish and sell those planes, which have been extensively repaired, but customers didn't want them.
Shares of Boeing fell 36 cents to $51.46 in morning trading Friday.
