Boeing Offers Reassurance to Its Angry Shareholders

Boeing Co. on Monday forecast worldwide demand for 17,650 new jets worth $1.25 trillion over the next 20 years, as the company was blasted by shareholders for production problems that have cost it nearly $3 billion.

“There is no one at Boeing Co. who is satisfied with the performance of the company over the past year--period,” Chairman and Chief Executive Phil Condit said at the company’s annual shareholders meeting.

He acknowledged that last year’s financial performance--Boeing’s first annual loss in 50 years--had been “extremely disappointing” and that the first quarter was not much better. But he and other Boeing executives said they are optimistic about the company’s ability to cut costs dramatically and post solid and increasing profit over the coming year.

The Boeing executives spoke after dissident shareholders presented a laundry list of proposals intended largely to make the company’s directors more accountable. Shareholders rejected all seven proposals that were opposed by management, but three garnered support from at least 25% of those voting, including one recommending annual election of the entire board rather than staggered three-year terms.

The annual meeting was the company’s first held outside Seattle and the first chance for shareholders to confront executives on the production problems disclosed last fall.

Commercial airplane group President Ron Woodard, who has come in for some of the harshest criticism, acknowledged that the company’s failure to meet its production targets had been “a difficult and humbling experience.”

Boeing shares fell 44 cents to close at $50.25 on the New York Stock Exchange.