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Technology Stocks : Boeing keeps setting new highs! When will it split? -- Ignore unavailable to you. Want to Upgrade?

To: Dale J. who wrote (1861)	10/9/1998 1:09:00 PM
From: Diamondcutter	Read Replies (1) \| Respond to of 3763

<<BA had problems getting parts/supplies on time. This caused idle time for the workers, followed by extensive and expensive overtime, assembly was done out of order which caused more problems and more delays, etc. etc. etc. According to BA management these major production problems have been resolved.>> I agree, those particular problems are (largely) solved. Unfortunately, when these planes were sold a couple or more years ago, they were priced upon the assumption that BA's production costs would continue to fall down the expected learning curve as production rose. The parts delivery problem, 737NG teething issues, etc mean that recovering to this curve is difficult, if not impossible, without wholesale change regarding how a plane is assembled. This is why we're expecting $2 earnings for 1999 at the peak of the cycle, parts are delivered on time and even as production rates hit their targets. Diamondcutter