The Boeing Co.’s decision to trim back production of its wide-body 777 jet is likely to bring bad news for employment at its plant in Everett, Wash., while a boost in the company’s quarterly dividend should come as good news for investors.
The bad-news, good-news situation was laid out on Dec. 12, sparking ups and downs in Boeing’s share price. By the end of today’s trading, the price was slightly down.
The planned cutback in 777 production from the current 8.3 jets per month to five per month next August points to a dramatic softening in the market for twin-aisle, wide-body jets. Production of Boeing’s 747 jumbo jets has been reduced as well. “The twin-aisle market is glutted,” Teal Group analyst Richard Aboulafia told Reuters.