* First flight and delivery will be rescheduled
* Company will update financial outlook in July
* Shares fall more than 7 percent
By Kyle Peterson
CHICAGO, June 24 (Reuters) - Boeing Co (BA.N) on Tuesday said the first test flight of its long-delayed 787 Dreamliner would be postponed again, a move sure to disappoint investors and customers who have ordered the revolutionary carbon-composite aircraft.
In a statement, the No. 2 planemaker did not give a new date for the first flight or the first delivery, which also would be rescheduled. The aircraft, already two years behind its original schedule, was to fly for the first time in the second quarter of 2009.
Boeing said it delayed the test flight to reinforce an area within the side-of-body section of the aircraft.
"Structural modifications like these are not uncommon in the development of new airplanes, and this is not an issue related to our choice of materials or the assembly and installation work of our team," Scott Carson, chief executive of Boeing Commercial Airplanes, said in a statement.
Boeing shares fell 7.8 percent, or $3.66, to $43.25 on the New York Stock Exchange.
The date of the first test flight has been delayed five times because of production problems and a two-month labor strike. The latest postponement could be a blow to the credibility of the company and its CEO James McNerney, who said as recently as May that the plane would fly in June.
"It's a setback that's going to disappoint investors. Boeing's shares will suffer a near-term setback," said Jack Ablin, chief investment officer at Harris Private Bank.
"I'm hopeful that this issue can be resolved quickly," Ablin said. "But my sense is that if it's big enough to delay the introduction, then this is a serious concern."
Boeing said its financial outlook would be updated in July to reflect any impact from the new delay.
Chicago-based Boeing and rival Airbus (EAD.PA) are being hit hard as carriers and cargo operators grapple with economic difficulties in many parts of the world. So far this year, Boeing has seen a net 45 cancellations for the 787.
In early June, Boeing said it had more than 50 customers who have placed orders for more than 850 of the airplanes.
CHICAGO, June 24 (Reuters) - Boeing Co (BA.N) on Tuesday said the first test flight of its long-delayed 787 Dreamliner would be postponed again, a move sure to disappoint investors and customers who have ordered the revolutionary carbon-composite aircraft.
In a statement, the No. 2 planemaker did not give a new date for the first flight or the first delivery, which also would be rescheduled. The aircraft, already two years behind its original schedule, was to fly for the first time in the second quarter of 2009.Boeing said it delayed the test flight to reinforce an area within the side-of-body section of the aircraft.
"Structural modifications like these are not uncommon in the development of new airplanes, and this is not an issue related to our choice of materials or the assembly and installation work of our team," Scott Carson, chief executive of Boeing Commercial Airplanes, said in a statement.
Boeing shares fell 7.8 percent, or $3.66, to $43.25 on the New York Stock Exchange.
The date of the first test flight has been delayed five times because of production problems and a two-month labor strike. The latest postponement could be a blow to the credibility of the company and its CEO James McNerney, who said as recently as May that the plane would fly in June.
"It's a setback that's going to disappoint investors. Boeing's shares will suffer a near-term setback," said Jack Ablin, chief investment officer at Harris Private Bank.
"I'm hopeful that this issue can be resolved quickly," Ablin said. "But my sense is that if it's big enough to delay the introduction, then this is a serious concern."
Boeing said its financial outlook would be updated in July to reflect any impact from the new delay.
Chicago-based Boeing and rival Airbus (EAD.PA) are being hit hard as carriers and cargo operators grapple with economic difficulties in many parts of the world. So far this year, Boeing has seen a net 45 cancellations for the 787.
In early June, Boeing said it had more than 50 customers who have placed orders for more than 850 of the airplanes.
Boeing had originally planned to fly the Dreamliner in the summer of 2007. But the date was pushed back four times.
The carbon-composite 787 promises to usher in an era of lighter, more fuel-efficient planes. With oil near $70 a barrel, cost conscious airlines are desperate for lower jet fuel bills.
"In the long term, it's going to put the break-even point for the 787 probably a little further out and it's going to increase the cost of development," said Alex Hamilton, an analyst at Jesup & Lamont Securities.
"I am a little surprised," he said. "I think a lot of confidence has been blown." (Additional reporting by Karen Jacobs; Editing by Lisa Von Ahn and Maureen Bavdek)
The carbon-composite 787 promises to usher in an era of lighter, more fuel-efficient planes. With oil near $70 a barrel, cost conscious airlines are desperate for lower jet fuel bills.
"In the long term, it's going to put the break-even point for the 787 probably a little further out and it's going to increase the cost of development," said Alex Hamilton, an analyst at Jesup & Lamont Securities.
"I am a little surprised," he said. "I think a lot of confidence has been blown." (Additional reporting by Karen Jacobs; Editing by Lisa Von Ahn and Maureen Bavdek)
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