Boeing Profits Down During First Quarter

Boeing Co.’s profits fell 34 percent in the first quarter of 1996 as aircraft deliveries were slowed as a result of last year’s 69-day Machinists’ strike, the company reported Monday.

But Boeing’s chairman said airline orders continue to be encouraging as the airline industry rebounds from a recession.

Profit fell to $119 million, or 35 cents a share, in the first quarter from $181 million, or 53 cents a share, in the first quarter of 1995.

Analysts surveyed by First Call had projected earnings averaging 42 cents a share. With the report below expectations, Boeing stock initially fell as much as $1.75 a share, but then recovered and was up 12 cents at $80.87 a share by early afternoon on the New York Stock Exchange.

Sales declined to $4.3 billion from $5 billion.

Boeing delivered 40 commercial jets in the first quarter of this year, compared with 59 in the same 1995 period. Deliveries were slowed because production rates were still recovering following the strike in the fourth quarter of 1995 by production workers represented by the Machinists union.