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Boeing upbeat on earnings forecast and 787 jet orders

Boeing Co reaffirmed its outlook on Wednesday for strong growth this year and next, telling investors it remains on pace for double-digit increases in earnings and revenue as it rides momentum linked to the new 787 jet.

The upbeat assessment came at the aerospace company's annual investor conference in Chicago at a time when Boeing is fast closing in on Airbus for the title of world's leading commercial airplane maker.

Chief executive Jim McNerney dismissed the notion of a tapering off in orders for commercial jets amid sizzling sales of the 787, which has racked up 568 orders from at least 44 different customers even before the first model rolls off the assembly line.

"The US and European legacy carriers have yet to order in any substantial quantities," he said in a response to an analyst's question at the meeting, which was Webcast. "So we don't see an immediate end to the cycle."

McNerney also said it is "inevitable" that a third commercial airplane maker, perhaps from China, will emerge eventually to challenge Boeing and Airbus. But he noted that "it's a 15-to-20-year run before we see a new entry," because it takes time to build such a complex business.

Boeing held to forecasts for earnings of between US$4.55 and US$4.75 per share this year on revenue between US$64.5 billion and US$65 billion. Next year profits are expected to grow to US$5.55-US$5.75 per share on revenue of US$71 billion to US$72 billion.

The Chicago-based company last month reported 27 percent higher first-quarter earnings that beat Wall Street projections.

The new 787 is scheduled for test flights in July and to enter commercial service next May.
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