Boeing shares fall as United defers $5b order

Boeing shares fell Tuesday after United Continental said it will defer jetliner orders worth nearly $5b as part of a cost-saving drive. The airline's decision affects Boeing's 737 jet, one of its biggest moneymakers, and raised some fears that Boeing may not lift 737 production as planned and could miss financial targets. The world's biggest plane maker said United's move would have no impact on production. United said it will convert orders for 61 Boeing 737-700 planes due to be delivered in the next two years into the newer 737 MAX model, but that it was still deciding on which size MAX planes to order and when they would be delivered, creating uncertainty for Boeing investors. United also will convert orders for four 737-700s to larger 737-800s due for delivery in 2017. Boeing shares fell 1.8% in early trading on the New York Stock Exchange and were last down 1.6% at $147.56. United shares rose 3.4% to $65.08. "We don't know when are they (the MAXs) going to come but they are going to come as 737 MAX, most likely MAX 8 or 9s," United CFO Andrew Levy said. "The reason we are doing this primarily is because we just don't need these airplanes right now." Boeing said United's move would not alter its planned increases in 737 production rates and stressed it continues to have orders for more 737s than it can produce. Boeing will keep the 737-700s on its books until United finalizes the MAX order.<br/>