From the Seattle Times:
Boeing to pour billion more into R&D for 787, stretch version of 747
By Dominic Gates
Seattle Times aerospace reporter
As it announced strong quarterly earnings Wednesday, Boeing also projected large increases in spending this year and next on development of the new 787 and on the forthcoming 747-8 jumbo-jet derivative.
The boost in research-and-development spending — the second in as many quarters — raised the R&D budget to almost a billion dollars more than forecast just five months ago.
The additional money for next year includes funding to pay extra mechanics in Everett, if needed.
Yet with revenue and profit for the quarter strong, executives seemed confident Boeing can absorb that extra spending. They still raised 2007 profit forecasts and tried to dispel any suggestion the bump in 787 costs meant the program is running into the kind of trouble afflicting Airbus.
From the Seattle Post-Intelligencer:
Boeing 787 gives investors a sudden fright
Shares fall as company tries to avoid problems that could threaten jet
By JAMES WALLACE
P-I AEROSPACE REPORTER
The Boeing Co. threw a scare into Wall Street on Wednesday when it announced it was pouring hundreds of millions of dollars more into the development of its hot-selling 787 jetliner to head off problems that could otherwise threaten the project.
With the first flight less than a year away, the Dreamliner is still too heavy. And some suppliers are falling behind schedule.
Boeing said it has funded a contingency plan to hire more machinists to help with 787 final assembly at the Everett plant should they be needed to keep the program on track. The additional jobs -- Boeing wouldn't say how many -- would be temporary.
Boeing Chief Executive Jim McNerney, in a conference call to discuss third-quarter earnings Wednesday, reassured analysts several times that he believes the 787 issues will be resolved and will not delay the plane's entry into service in May 2008.