Another difficult data point for Boeing's 787 Dreamliner.

Boeing announced that it will delay the first test flight of its next-generation jetliner, the 787 Dreamliner, beyond Q4, citing the recently-ended machinists strike, Bloomberg News reported.

Further, the company set no new time frame for the plane, the test flight of which has already been delayed three times and is currently 15 months behind schedule, Bloomberg News reported. An eight-week strike with the machinists union, the International Association of Machinists and Aerospace Workers, was settled November 2, with machinists approving a new contract shortly thereafter.

The Boeing Company's (NYSE: BA) shares slid $4.09 to $49.53 Wednesday afternoon amid a broader market sell-off.

Just call it a quarter of modest progress for AMR, despite the earnings per share loss.

AMR Corp., parent of American Airlines, posted a third quarter loss, excluding items, but also said it will order 42 next-generation planes from Boeing -- signaling that cost-cuts and increased efficiency may very well position the carrier for better quarters ahead.

AMR Corp (NYSE: AMR) reported a Q3 earnings per share of a loss of $1.39, excluding one-time items.

Analysts surveyed by Reuters had expected AMR to report a Q3 earnings per share loss of $1.36. AMR posted Q3 revenue of $6.4 billion. AMR's shares rose 60 cents to $9.38 in Thursday morning trading.

In the space of a short month, the financial universe has been reordered.

Europe and the United States have launched major interventions plans to stabilize the global financial system. China has cut interest rates and pledged to help further to normalize financial flows. The Treasury Secretary of Russia and the U.S. Treasury Secretary are negotiating with the same goal in mind.

There's even been progress on New York's Second Avenue Subway Line, second only to, perhaps, the Burma Road in the length of time needed to complete a public works project.

Meanwhile, in Seattle . . . Boeing and the union representing machinists remain at loggerheads over a new contract, with work idled since September 6.

The work stoppage is costing Boeing (NYSE: BA) about $100 million per day, Bloomberg News reported. Even worse, lack of progress toward a new contract with the International Association of Machinists and Aerospace Workers could ultimately cost both sides much more, says stock analyst C. Leonard Bauer.

"If the strike is not settled in a week it invariably will force another roll-out delay in the first 787 Dreamliners, and in other airplanes, which would be major operational setbacks for Boeing and the machinists," Bauer said. "We're talking purchase delays and order cancellations by airlines. That will both lower projected revenue and result in lost jobs." Bauer added that he does not have a rating on nor own shares in Boeing or any airplane manufacturer.

With its stock down 53% since it announced the first delay in the 787 Dreamliner, it would be an understatement to say that Boeing (NYSE: BA) is going through a rough patch. It has been a month since its 27,000 machinists went on strike and both sides are hurting. Now they are resuming negotiations.

How much pain is this strike creating? Boeing could lose $1.75 billion worth of revenue and take a 13% earnings hit if the strike ends up lasting seven weeks. Meanwhile, machinists -- who average $26 an hour -- are making $3.75 an hour worth of strike pay (assuming a 40 hour week for their $150 a week strike pay packet).

The dispute between Boeing and its machinists appears to be about several issues. But the most important one seems to be that Boeing wants to have the flexibility to outsource work and machinists want to limit that flexibility. I think they should agree to a compromise which would give the machinists a chance to make a proposal to keep work with them if they can do the work well at a competitive price.

What a September.

The Yankees fade during the stretch and don't make the play-offs. And Yankee Stadium, The House That Ruth Built, has closed, forever. Meanwhile, the stock market frequently looks like it wants to close.

Well, at least Boeing (NYSE: BA) is doing well. No, wait, Boeing too is closed, temporarily, due to a strike.

And now there's word that Boeing will reassess its 787 Dreamliner delivery schedule for the Japanese market once the ongoing strike ends, Reuters reported Tuesday.

Analysts fear that a failure of Boeing and the International Association of Machinists and Aerospace Workers to reach an agreement that has idled 27,000 machines could further push-back the 787's delivery timetable. The IAM strike began September 6. Boeing has already delayed delivery of its next-generation 787 airplane by 18 months. Boeing's shares rose $1.52 to $56.99 Tuesday afternoon amid a broader market rally.

Not a September Sinatra would sing about

"I guess this September was meant to be a month with all bad news, because it certainly seems that way," Stock Analyst C. Leonard Bauer said. "Boeing was one of the few bright spots on a pretty dismal domestic economic landscape. Great new products, solid orders, a good future for the company and the stock. But then management and the union can't agree on compensation. Pretty sad."

Boeing's (NYSE: BA) largest union, the International Association of Machinists and Aerospace Workers, is in its third day of a strike that's idled 27,000 workers. An aviation consultant argued that the strike could last more than a month, if history is any guide, Bloomberg News reported Tuesday.

However, Stock Analyst C. Leonard Bauer said what counts in work stoppages is not so much company/sector precedent, but "the reality of the facts on the ground ... the nature of the issues involved." Bauer added that he does not have a rating on nor own shares in Boeing.

"The two sides are reasonably close on the standard pay increase, it's pension payment increases and the use of outside contractor for work that the two sides are far from agreement on," Bauer said. "Boeing is booming now and the IAM wants some assurance that their retirees' pension will not go the way of other corporate pension plans, which were revised lower as corporations faced tougher times. The two sides are still pretty far apart on that issue, as well as on the use of outside contractors." Boeing's shares rose 80 cents to $64.71 in Tuesday morning trading.

Given the above, a strike of less than a month "would be a moral victory," Bauer said.

The Wall Street Journal reports that Boeing Inc. (NYSE: BA) factory workers who belong to the International Association of Machinists and Aerospace Workers (IAM) have voted to strike by a wide margin. However, thanks to the intervention of a federal mediator, the two sides have 48 hours to try to work something out. I cannot tell whether they will be able to find common ground.

Eighty-seven percent of IAM's "26,800 machinists rejected a proposed three-year contract that would have given members raises and bonuses totaling $34,000," according to the Journal. Boeing offered each union member a $2,500 signing bonus only if "the contract was ratified on the first vote." IAM's decision not to ratify costs workers that bonus. Boeing proposed an "11% pay raise over the life of the contract, as well as boosting pensions by 14% to $80 a month for each year of service. [The contract would pay the average union member] roughly $65,000 a year before overtime that averages $10,000 a year or more," according to the Journal.

IAM wants a bigger raise, more pension contributions, and lower health care payments. As the Journal wrote, IAM wants "pay raises of at least 13% and a larger pension amount. It also wants Boeing to abandon plans to have workers take on a greater share of certain health-care costs."

For Boeing (NYSE: BA), there's more hinging on today's machinists' contract vote than the company's primary labor costs over the next three years.

"The fate of future orders for the 787 Dreamliner could weigh in the balance," stock analyst C. Leonard Bauer told BloggingStocks Wednesday.

About 27,000 members in the International Association of Machinists and Aerospace Workers union in Washington State, Oregon and Kansas will vote today concerning whether to accept a three-year contract, The Associated Press reported Wednesday. Contact vote results are expected Wednesday night.

Shares of Boeing (NYSE: BA) rose 90 cents to $66.79 in Wednesday morning trading.

Despite Boeing's offer of a $5,000 signing bonus and a pay increase totaling 11% over the 3-year contract, its passage is hardly a slam dunk, Bauer said. "I know the media likes to portray every major union contract as a big deal, but this one really is a big issue. There are a lot of nervous parties watching this vote, parts suppliers to Boeing, businesses in the affected regions, and of course, almost every major airline around the world," Bauer said. "A protracted strike at Boeing would jeopardize several commercial airplane delivery timetables."

Work stoppage could hurt 787 orders

This is not the way to kick off the fall production season, typically a time when companies introduce new products and plans. Boeing (NYSE: BA) could lose up to $3.5 billion per month in revenue if a threatened strike by a machinist union occurs next week, USAToday reported Friday.

The potential action by the International Association of Machinists and Aerospace Workers could also delay the 787 Dreamliner program and other aircraft programs. About 27,000 machinists in Washington state, Oregon and Kansas would be affected.

Boeing's latest contract offer calls for an 11% pay increase in annual increments of 5%, 3%, and 3%, Bloomberg News reported Friday. Machinists would also get a $2,500 payment if they approve the new contract by September 3.

Stock Analyst C. Leonard Bauer told BloggingStocks Friday Boeing "will probably have to increase its offer to the IAM, given what's at stake for Boeing."

"Boeing is in a position where it can increase its labor cost base. Revenue remains strong, with large backorders," Bauer said. "Those facts, plus the fact that Boeing can not afford any more delays in the 787 program, means the IAM has the upper hand in these contract negotiations. I'm sure the machinists don't want a strike, either, so my call would be for Boeing to up its pay raise offer to 6%, 5%, and 5% for a 16% pay increase." Bauer added that he does not have a rating on nor own shares in Boeing.

Investors and readers are probably aware of production snags that have delayed two next-generation airplanes, Airbus' A380 Superjumbo and Boeing's 787 Dreamliner.

But now there's word of production delays for two existing aircraft, Airbus's A330 and Boeing's 777.

A shortage of seats, toilets, and galleys is slowing down A330 and 777 assembly lines, The Wall Street Journal reported Friday (subscription required). Managers at the world's two rival commercial aviation giants suggest the snags could affect this year's financial results, but neither company has issued an earnings warning.

Shares of Boeing (NYSE: BA) gained $1.87 to $66.56, while shares of Airbus' parent EADS rose 1.27 euros to 14.85 euros on the Paris Exchange, in Friday afternoon trading.

Contractor ramp-up issues

For Boeing and Airbus, the crux of the problem stems from the relatively small size of the contractors producing equipment such as jetliner galleys, toilets and business-class seats, The Journal reported. Stock Analyst C. Leonard Bauer told BloggingStocks Friday the problem Boeing and Airbus face is "an upside problem," but a problem nonetheless.

"It's called the problem of success. Jetliner orders and deliveries have risen more than 40% in five years and contractors are straining to keep up," Bauer said. "It had to happen sooner or later, because it's hard for contractors to in some cases double production of a part in two or three years." Bauer added that he does not have a rating on nor own shares in Boeing or Airbus.

Boeing, which already has delayed its new 787 Dreamliner 14 months, announced Tuesday it will know "soon" whether a supplier's damaged part on the fourth of six test planes will affect the program, Bloomberg News reported Tuesday.

The mid-body fuselage section built by Global Aeronautica LLC, a venture with Alenia North America, was damaged "by an Alenia employee not following proper work procedures" in Charleston, S.C., Boeing said, Bloomberg News reported. Boeing said it resolved the issue, but it is currently evaluating the error's impact on the plane's timetable.

Boeing's shares (NYSE: BA) fell 52 cents to $65.20 on the news in Tuesday morning trading.

Stock analyst C. Leonard Bauer said he's "not going to think the worst" regarding a possible timetable change, until Boeing knows definitively if it will affect production and roll-out.

Boeing said on Monday its 787 Dreamliner would make its first test flight in Q4 2008, reiterating that it would make its revised test flight date for the next-generation airliner, Reuters reported Tuesday.

First deliveries of the plane were also on schedule for Q3 2009, said Dmitry Krol, Boeing's director of communications in Russia and the Commonwealth of Independent States, Reuters reported.

Boeing's (NYSE: BA) shares rose 53 cents to $73.69 in Monday afternoon trading.

Independent stock analyst C. Leonard Bauer told BloggingStocks Monday Boeing's reiteration of the company's first-flight time deadline was not gratuitous.

The first 'power on' for Boeing's (NYSE: BA) next-generation 787 Dreamliner, now set for June 2008, will be a milestone, but by no means the final hurdle for the new plane, says an analyst.

Boeing said it has overcome 787 parts shortages and that subsequent planes are arriving at the final assembly line in better and better shape, The Associated Press reported Tuesday.

Boeing is the first major aerospace company to use a decentralized manufacturing model for a civilian commercial airplane, and the company has experienced a series of related snags that have delayed the launch of the 787 by about 15 months. Commercial airlines are now expected to take possession of the first 787 planes in Q3 2009.

C. Leonard Bauer, an independent stock analyst, told BloggingStocks Tuesday that any more delays for the 787 roll-out and Boeing "will be the last aerospace company to use a decentralized manufacturing model" for a civilian commercial airplane.

Airbus has again delayed delivery of selected A380 superjumbo jets, saying the company's transition to automated production is behind schedule.

Airbus now expects to deliver 12 A380 planes in 2008, down from 13, and 21 planes in 2009, down from 25, the company announced Tuesday.

Promoted as the world's most economical, large aircraft, the A380 is about two years behind schedule. The A380 will seat 525 passengers in a normal configuration, at least 50-120 seats more than its chief competition, Boeing's (NYSE: BA) 747, the wide-body industry standard.

In Europe, shares of Airbus's parent EADS were virtually unchanged on the news, down just 2 euro cents to 12.72 euros in afternoon trading. Boeing's shares gained five cents to $84.87.

Readers of this space know that the investment bias is toward large-cap companies with demonstrated business models and who have a competitive advantage in established markets, preferably with a favorable global trend as a support. And with the above in mind, Boeing is worth an evaluation.

The Boeing Company (NYSE: BA) is the world's largest aerospace company.

In general, analysts expect 3-5% revenue growth in FY 2008, and 7-10% in FY 2009 as Boeing's increased aircraft production to meet high order backlogs offsets production delays in the 787 Dreamliner.

Moreover, although not to give short-shrift to Boeing's Integrated Defense Systems division, now the world's second-largest military contractor, behind Lockheed Martin (NYSE: LMT), the major driver of BA's future value-added will continue to be its commercial aviation operation, led by the next-generation 787 Dreamliner.