Boeing holds firm in face of downturn

NEW YORK - Despite a fast-shrinking market for jet aircraft, the giant American group Boeing reported surprisingly strong second-quarter profits yesterday, earning almost as much as it did a year ago, writes Larry Black.

The world's largest aircraft manufacturer made dollars 426m, or dollars 1.25 a share, compared with dollars 432m - dollars 1.27 a share - on slightly higher sales of dollars 7.98bn. But it warned that second-half sales would probably be 20 per cent lower, giving 1993 sales of dollars 26bn against dollars 30.2bn.

The company said economic conditions in most of its markets meant the trend to slower sales was likely to continue through 1994. New orders for commercial airliners are below production rates, and many large customers are renegotiating delivery schedules.

Boeing delivered 202 aircraft during the first half of 1993 compared with 243 in the first six months of 1992. Military orders declined 14 per cent to dollars 2.13bn and now account for less than 20 per cent of Boeing's business.