Boeing Rises After CEO Defends 787 Dreamliner Accountingby
Company has used the same accounting practices `for decades'
Boeing midrange jet options include `so-called stretch' 737
Boeing Co. was among the biggest gainers on the Dow Jones Industrial Average after Chief Executive Dennis Muilenburg defended accounting practices for its marquee 787 Dreamliner jet as “a procedure we’ve used for decades.”
Muilenburg declined to comment on a Bloomberg News report that the U.S. Securities and Exchange Commission is investigating how the company estimated costs and sales for the 787 and 747-8 programs. Boeing is “very confident” of its accounting methods, which are consistent with reporting for other jetliners, Muilenburg said at the Barclays Industrial Select Conference on Wednesday in Miami.
The shares increased 3.3 percent to $116.34 at at the close in New York, the second-biggest advance among the 30 members of the industrial average. Boeing has declined 20 percent since the start of the year as the accounting-probe report and a forecast for declining jetliner deliveries undermined investor confidence.
Chicago-based Boeing is working to cut costs and boost productivity at its factories as it faces competition from Airbus Group SE, Muilenburg said. While the European company has garnered almost 60 percent of recent single-aisle orders, Boeing won’t pursue market share at any cost, he said.
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Boeing will continue to make big investments in cutting-edge new programs, without neglecting spending to bolster its existing product lineup, he said, a contrast to the “no moonshots” proclamation by predecessor Jim McNerney.
The company continues to explore options for the midrange market dominated by Airbus’s largest narrow-body jet, the A321. They include a new design, a “so-called stretch of the 737” and doing nothing, Muilenburg said.