By Alwyn Scott
NEW YORK, Sept 2 (Reuters) - Boeing (NYSE:BA) Co BA.N delivered 14
of its 787 Dreamliners in August, exceeding for the second
straight month its 10-a-month target and suggesting strong
financial performance later in the year, people familiar with
the situation said on Wednesday.
The tally, likely to be confirmed by Boeing on Thursday,
means the company has managed to deliver an average of just over
11 of the high-tech planes a month so far this year. That puts
it on track to easily meet its target of 100 for 2015.
The 787, Boeing's newest plane, has a lightweight
carbon-fiber composite fuselage and is designed to be more fuel
efficient than previous aircraft.
The high pace of deliveries comes because Boeing is getting
caught up on jets it had in the pipeline, but that had not been
delivered. It does not mean the 787 assembly lines in Washington
and South Carolina are running faster than their combined
production rate of 10 planes a month. In August, 10 of the
planes came from Everett, Washington, and four from North
Charleston, South Carolina, one of the sources said.
The high delivery suggests Boeing likely is bringing in
additional cash, since the bulk of payment comes when planes go
to customers. That is likely to please investors, who are
closely watching Boeing's cash generation, analysts said.
The planes that are boosting the delivery tally include some
of the so-called "terrible teens," early production units that
needed additional work, according to the people familiar with
the matter. Industry sources have said these were sold at
substantial discounts to list price of about $265 million.
A Boeing spokesman declined to comment on delivery totals,
other than to say they do not always match production rates.
The spokesman said Boeing is on track to produce by year end
its first 737 MAX plane, a new version of the best-selling 737.
Boeing began MAX production in May and received the first
MAX fuselage on Aug. 21 from supplier Spirit Aerosystems
Holdings Inc SPR.N . Boeing has booked 2,831 orders for the new
plane, which is designed to be more fuel efficient than current
models and is due to enter service in 2017.