Boeing CEO Says Firm Will Remain Profitable

Boeing Co. Chairman and Chief Executive Phil Condit said he expects the aerospace giant to remain profitable despite the severe downtown in the airline industry and a likely decline in orders for aircraft.

Condit said his optimism is based on a strategy begun in 1996 to transform Chicago-based Boeing from a company with 80% of its business in commercial aircraft to one with better balance that includes military aircraft, space and communications components.

Briefing reporters before a speech to the Commerce Club of Chicago, Condit said the company’s goal is to run healthy core businesses and to create products and services.

Condit compared what is happening to the airline industry now with what occurred during the Persian Gulf War, but he expects a recovery in air travel to take longer this time.

Condit said he expects about a 20% reduction in aircraft deliveries next year, with a rebound sometime in 2003.

Boeing shares rose $1.53 to $34.33 on the New York Stock Exchange.