CHICAGO - US AEROSPACE giant Boeing, buffeted by strike and supply problems and threatened by more delays with its new 787 airliner, announced a 38 per cent fall in third-quarter net profit on Wednesday.

The group said net profit fell to US$695 million (S$1.04 billion) while earnings per share declined 33 per cent to 96 cents, missing analysts' consensus forecast of 99 cents.

'Clearly, the results were affected by the machinists' strike, as well as by the supplier issues we face on the 787 programme,' said Boeing chief executive Jim McNerney on a conference call.

Boeing's 27,000 machinists, representing 16 per cent of the company's workforce, walked off the job on Sept 6 in a dispute over new contracts, causing delays in production and deliveries.

The group, which is also a defense supplier, said the strike had reduced deliveries of third-quarter commercial airplanes by approximately 35 units and net earnings by an estimated 60 cents share.

The strike by machinists is estimated to be costing the company US$100 million per day. According to a running union tally, the 47-day-old strike has cost more than US$4.6 billion to date.

Third-quarter revenues fell seven per cent to US$15.3 billion, from US16.5 billion in the same period in 2007.

Shares in Boeing closed down 7.83 per cent at US$12.48.

As well as reducing revenue and profit, the strike risks further delaying the launch of Boeing's new commercial plane, the 787 Dreamliner, for which 895 orders have been placed by 58 customers.

Boeing has declined to discuss any further delays to the 787, a fuel-efficient mid-sized plane, saying only that an update will be given once the strike has ended.

'I'm hopeful we can find a way forward here, sooner rather than later,' said Mr McNerney during the conference call.

'The economic environment is a reminder we have to respond quickly.'

The company and the machinists' union have agreed to resume federally mediated contract talks on Thursday.

'Boeing will provide updated financial guidance and an assessment of the schedule for its affected airplanes after the strike concludes,' it said.

For the 787, the programme 'made progress during the quarter despite the labor strike,' meeting 'key milestones' including hydraulic system and landing gear tests and analysis of the structural integrity of the plane.

The first deliveries of the 787, initially planned for the first half of 2008, have been pushed back to the third quarter of 2009 due to production difficulties.

Other supply problems in the third quarter stemmed from a lack of finished kitchens for large aircraft, Boeing said.

For the defense sector, Boeing said it expected a slowdown in spending in the months ahead. Sales from defense increased 6.0 per cent in the third quarter on a 12-month basis.

'Boeing expects total US defense spending growth to moderate, but is focused on improving the outlook for individual programmes by keeping them operationally healthy,' the company said.

Boeing's total order backlog totaled US$349 billion, a record, the company said. -- AFP