Boeing reports record revenues of $58.2b

In a year which began with an earthquake in its home base of Seattle and ended with the aftermath of September 11 and all its impact on air travel - the Boeing Co managed to achieve record revenues of $58.2 billion in 2001.

Net earnings were also a record $2.8 billion while earning per share stood higher by 40 per cent at $3.41, according to global figures released exclusively to Gulf News ahead of their publication.

Apart from the 13 per cent rise in revenues, the highlights of 2001 results included an operating margin of 6.7 per cent and a strong free cash flow of more than $2.7 billion.

Boeing delivered 527 commercial airplanes last year, continued with the Sonic Cruiser and 777-300ER project, launched the 767 tanker programme with orders from Italy, Japan and started on it talks with U.S.

It won a C-130 avionics modernisation programme worth up to $4 billion, apart from achievements on the military side.

However, it is with some seriousness that Boeing looks towards the future - especially in the aftermath of September 11 events.

"We do have to deal with repercussions in the marketplace. These include a sharp and perhaps prolonged reduction in demand for new commercial airplanes, and a shift in defence priorities to homeland security and the need to root out and destroy an elusive, often faceless enemy," said Philip Condit, Boeing Co chairman and CEO, in his message to shareholders.

He said the commercial airplane market could stay down for a few years. "Production rates could be depressed for as long as three or four year. In 2002, we will deliver 380 jetliners, compared with 527 in 2001.

"But we know we can deal with that, based on recent experience."

Boeing jetliners deliveries fell from 620 in 1999 to 489 in 2000, but company earnings went up.

"We understand lean enterprises, and we are using that understanding to achieve some phenomenal efficiencies," Condit said adding that the company would introduce moving assembly lines for the 717 and 737, with the 747 close behind.

The company sits on assets of over $48.34 billion.