Is Boeing Out of Its Spin?

A production crisis has eased, but the No. 1 jetmaker must deal with Asia and Airbus

Like a jetliner that keeps hitting turbulence, the Boeing Co. has been lurching through some stomach-churning rides. An embarrassing failure to meet delivery schedules helped force the Seattle giant to take a $178 million loss in 1997--its first red ink in 50 years--and to report a 90% drop in profits for the first quarter of 1998. The problem: shortages of parts and a production system that could not keep up with the largest surge of new orders in the history of the jet age.

The burden of too much business, however, may not be with Boeing long. Asia's financial crash has...

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