By FITSNews || Boeing’s second quarter profits were down 21 percent from a year ago as the Chicago-based aircraft manufacturer struggled to keep up commercial airline deliveries.
Boeing reported earnings of $787 million during the quarter – down from $998 million a year ago. That decline was driven by a 12 percent drop in revenue generated by the Chicago-based company’s commercial aircraft division.
Nonetheless, Boeing’s stock is up more than 59 percent this year as air travel has picked up around the world and orders have continued coming in for the company’s new 787 Dreamliner, which will be manufactured at a facility in North Charleston, S.C. beginning in 2011.
The Dreamliner is more than two years behind schedule, due to both design and supply chain problems.
Made of 50 percent carbon fiber composite material, the 787 is lighter, stronger and more fuel-efficient than most commercial jets – which are made primarily of aluminum. This revolutionary, money-saving design resulted in a record number of Dreamliner orders from airline companies when the plane was first offered for sale six years ago.
Since then, however, the plane has proven to be a “Nightmare Liner,” as numerous glitches in its design as well as problems with Boeing’s supply chain and labor force pushed its scheduled launch further behind schedule – costing Boeing billions.
Initially scheduled for delivery in May of 2008, the first Dreamliners aren’t scheduled to arrive until the fourth quarter of 2010.
Boeing’s financial reports are watched closely in South Carolina given the hundreds of millions in taxpayer-funded incentives that were awarded to the company last October when it decided to locate its new manufacturing facility in North Charleston.
Opponents claim that S.C. politicians misled the public about the true size of the incentives package (recently calculated by the Charleston Post and Courier at $900 million), referring to the deal as a “bailout for Boeing.” Supporters of the deal point to a recent study showing that the facility will have an annual economic impact of $6 billion and create at least 16,000 permanent jobs in the Palmetto state.
For more on that high-profile spat, click here.
We continue to urge both parties to keep their focus on South Carolina’s small businesses, which account for more than 95 percent of jobs in this state. In fact, according to the latest data from the S.C. Department of Revenue, 97.5 percent of the state’s 68,738 full-time employers are small businesses.
By JM July 28, 2010 at 11:08 am
BA stock is only up 26% YTD, not 59%, by my reckoning…
By CNSYD July 28, 2010 at 12:20 pm
Liars, damn liars and then statistics. E.G., “97.5% of the state’s 68, 738 full time employers are small business”. And this proves what? You could have 68,738 one man shops. What does that prove? What counts is how many EMPLOYEES there are and what is their wage rate. Do a little constrast of the salary of a WalMart greeter as compared to a BMW or Boeing journeyman. I know, facts hurt the story.
By fitsnews July 28, 2010 at 12:25 pm
CNSYD-
Actually, in addition to those 68,738 small businesses, over 100,000 South Carolinians are currently self-employed.
Put that in your calculator.
-FITS
By CNSYD July 28, 2010 at 12:54 pm
FITS, you still evade the wage rate part of the question. So there a lot of street corner hot dog vendors, what does that prove? Does your cost/benefit calculator indicate that incentives should be made available for all individual one man shops that work out of their toolbox in their garage?
By Crooner July 28, 2010 at 1:43 pm
How many of the 100,000 self employed are working more than three hours a day? Lazy SC bastards. They work long enough to buy a twelve pack and then go home to watch TV and take a nap.
By eggaday July 28, 2010 at 1:45 pm
did ya’ll know that small businesses asking for loans now have to have 80% of the loan balance available in cash to get the loan….
reckon boeing could get a loan?
By CNSYD July 28, 2010 at 2:43 pm
eggaday, if a “small business” had earned $787 million in one quarter, had fixed assets such as factories and machinery, order books for future production, etc. they should not have a problem. I hear what you are saying and do not say it is right or fair, but my whole life I have heard that financial institutions don’t loan money to anyone who needs it.
By Billy Bob July 28, 2010 at 5:33 pm
Horseshit to your stupid statistics – Best thing you can do for small business is plop a big business in their midst. Look at BMW.
By snodgrass July 28, 2010 at 5:35 pm
I firmly support small businesses. After all, they epitomize the entrepreneurial spirit that helps cultivate the American Dream. However, that’s about all small businesses can offer in this economic reality.
We’ve spent too much and produced too little. Unless we reverse that trend, no business, small or large, will offer meaningful prospects for a recovery anytime soon.
By tinker July 28, 2010 at 8:54 pm
THE ONLY PEOPLE MAKING MONEY THESE DAYS ARE LOBBYISTS, BEER-MAKERS, AND BULLET MAKERS…
By carl the greenskeeper July 30, 2010 at 10:09 am
Well, I mean, I have a small entreprenurial enterprise going with my grass business and I do a little consulting for other greenskeepers on the side, but I could use a loan. Maybe with a low rate and some nice parting gifts, a toaster, a clock maybe. I asked the SBA about it and do you know what they said? They said appraisal on my grass plot had fallen too far so to get a loan so I had to have 20% in cash. Then they said my IRA had fallen in value too much, so I couldn’t pledge that. I have a small trust, to protect my assets, the beer can collection, the classic soft drink bottle collection, the mowers, the weedeaters, you know, the tools of the trade, so to speak. So they told me I had to pledge all the trust property and agree not to use it without their written ok. I said, Hey, you know, how about a little something for the effort? I’ve been at this for years, now I can’t stay in business without your loan, but to get your loan I have to put myself out of business. Do you know what they said to me? Gunga Galunga. Gunga Galunga! So, I don’t have that going for me, which is not nice.
By CNSYD July 30, 2010 at 10:39 am
Carl, if your business goes belly up, how many Mexican illegals will be unemployed?
By Analyst July 30, 2010 at 12:11 pm
http://www.thestate.com/2010/07/30/1396017/putting-sc-on-radar-screen.html
By carl the greenskeeper July 30, 2010 at 2:37 pm
CNSYD, I’m an independent, developing a hybrid grass for greens. A little bent grass, some bermuda and a touch of sensimilla. That way, you can smoke or sell the clippings. Makes a great house warming gift for the couple who has everything. But, you know, I’m just barely legal myself, so its just me and the lawn edger.