Boeing profits slump by a fifth

Aircraft giant Boeing has reported a sharp drop in profits between April and June amid falling plane deliveries.

Net profit for the quarter was $787m (£504m), higher than analysts had expected but down 21% on the $998m the firm made in the same period last year.

Deliveries of the new Dreamliner are slipping because of the recession in the global airlines industry.

It also faces tougher competition from smaller, cheaper rivals.

Richard Tortoriello, an Aerospace Analyst from Standard & Poors, says he would not be surprised if Boeing decided to cut its workforce within its defence business in the US and Europe.

Michelle Fleury reports.

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