Boeing delivers 527 jets in 2001, above forecast

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CHICAGO, Jan 3 (Reuters) - Boeing Co.(BA), the world's largest maker of
commercial airplanes, said on Thursday it delivered 144 jets in the fourth
quarter, boosting its total for the full year to 527, five more than it
projected after the Sept. 11 attacks slashed air travel worldwide.

Chicago-based Boeing in December said it was still on target for 522
deliveries, up from 489 in 2000 and below the record 620 jets it delivered
in 1999.

Boeing spokesman Larry McCracken said the totals were higher than expected
as the company worked with customers to help them take airplanes on order.

The totals included 85 narrow-body 737s in December and 299 for the year, or
57 percent of the total. The wide-body 777 accounted for 16 deliveries in
December and 61 for the year.


Any additional information on 2003 deliveries will not be released until
Jan. 23, when the company reports its fourth quarter financial results.

Boeing also said it delivered 87 military aircraft in 2001, led by the 36
shipments from its F/A-18E/F Super Hornet fighter line.

The company expects to deliver 350 to 400 jets in 2002 and less than that in
2003. It expects to lay off as many as 30,000 workers -- or about 30 percent
of its commercial airplane work force -- by the end of 2002 to cope with the
airline downturn.

Boeing has begun slashing jetliner production to roughly half its current
rate and announced it would take a $700 million charge, which would
virtually eliminate its fourth quarter profit.

In a Dec. 13 announcement, Boeing blamed a variety of factors for the
charge, including severance pay, supplier penalties and lost value of
aircraft and spares.

Before the December deliveries were announced Boeing shares rose 1.7 percent
to close at $38.75 on Thursday on the New York Stock Exchange.

The stock has fallen 11 percent since the Sept. 11 attacks and was the worst
performing issue in the Dow Jones industrials average in 2001, losing 41
percent for the year.


©2001 Reuters Limited.

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