Boeing delay hits Vought Aircraft

Local company makes component for 787

The postponed debut of Boeing Co.'s 787 airplane is slowing production at a North Charleston plant that makes sections of the new passenger jet.

Vought Aircraft Industries Inc. said during its first-quarter earnings announcement Monday that it "is implementing actions to rebalance its work force," its startup schedule and its spending plans at its factory on the outskirts of Charleston International Airport.

Boeing last month knocked back the commercial launch of the 787 by another six months, to the third quarter of 2009. The inaugural test flight of the Dreamliner isn't expected until the fourth quarter of this year. The company initially had planned to deliver the first 787 to Japan's All Nippon Airways this month.

Vought has 333 employees in North Charleston, where it makes barrel-shaped rear fuselage sections from high-strength composite materials.

In a statement to The Post and Courier, the company said it does not anticipate the latest delay at Boeing will lead to any layoffs or furloughs in North Charleston, but it said the new timetable will "alter the pace of our ramp-up activities."

"As we implement internal plans to deal with Boeing's schedule, we anticipate making some adjustments in work assignments, including some shift changes," the company said.

The delays also will affect investments

in the local plant, with Vought saying "we are not going to be spending as fast as anticipated on long-term assets (such as equipment)."

The postponed aircraft launch also means the profitability of the Vought factory will be pushed back. The Dallas-based company estimates it will not break even on the 787 contract until it delivers at least 300 fuselage sections. The curtailed schedule calls for Boeing to complete just 25 Dreamliners in 2009, down from the planned 112.

The Vought plant and a neighboring facility operated by Global Aeronautica provide more than half of the 787 airframe. Global Aeronautica joins together three large fuselage sections made by Vought and two other suppliers while installing thousands of internal components.

The finished pieces are then loaded onto a cargo plane and flown to Boeing's final assembly line near Seattle.

Vought owns 50 percent of Global Aeronautica, but it is selling that stake to Boeing.

Elmer Doty, Vought's chief executive, said Monday he is "very pleased" with the progress being made in North Charleston after some early production glitches. The most recent delivery, which Doty termed "Airplane Three," contained 98 percent of the components that Boeing wants installed.

"Airplane Four will be even better," he said.

Doty said the 787 program will continue to require additional investments by Vought when production of the jet eventually kicks into high gear. Last week, the company said it secured $200 million in bank loans that primarily will be used to fund Dreamliner expenditures.

Doty also praised Vought's local employees, saying "they're doing a really good job under some tough circumstances."

Vought reported a profit of $28.7 million for the quarter ended March 30, up 49 percent from the same period of 2007. Revenue increased 12 percent to about $425 million.

Reach John McDermott at jmcdermott@postandcourier.com or 937-5572.