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10% Margin? They wish. Boeing is losing $25 million for every 787 it delivers [1]. Boeing investors would be ecstatic to get a 1% margin right now.

[1] http://www.seattletimes.com/business/boeing-aerospace/will-7...



How much of that is fixed-cost accounting loss?

Aircraft have high design costs (figure for the '87 is above), but the actual manufacturing costs should be ... somewhat reasonable. I have a hard time imagining Boeing would be selling the aircraft if they weren't recovering their marginal costs.


Coincidentally, Boeing's being investigated by the SEC for their bizarre program accounting to answer this exact question.

http://www.seattletimes.com/business/boeing-aerospace/report...

The "never make a profit" line is probably a tax-deferral strategy which is reflected by their stock price increasing ~100% in the past 5 years. Not exactly the performance you'd expect of a floundering company.




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