Boeing will not raise 787 production unless market demands it

Boeing said Wednesday it will not increase 787 output and could further cut 777 output unless sales of both jets improve, its clearest indication yet that its production of large jetliners may have peaked for now. "If the market's not going to demand it, we're not going to go," CFO Greg Smith said. "It's not the end of the world" if Boeing keeps 787 production at 12 a month instead of lifting it to 14 as planned, Smith said during the event. "We can still be profitable in the program as I see it today at 12." Analysts said Smith's statement confirmed that Boeing will not overproduce widebody planes and, most importantly, does not foresee an accounting charge for the 787 if output stays at 12. Smith said the company would decide in the next two months whether to cut 777 output further. If it fails to sell enough 777s to bridge the gap to new 777X production, "then we will make an adjustment accordingly," he said.<br/>