Boeing says 2011 profit hurt by 787, defense cuts

MINNEAPOLIS: Boeing Co. says delays to its new 787 and higher pension expenses will hurt its 2011 profit.

The airplane builder and defense company also says its fourth-quarter profit fell to $1.16 billion, down 8 percent from the same time last year. Not counting special items, the profit was about what analysts expected.

For 2011, Boeing now says it expects to make $3.80 to $4 per share. That's well below what analysts expected. Boeing says this year's profit will be hurt by the 787 delay, as well as tighter defense budgets. It had originally planned to begin delivering 787s around next month. Now it says it won't deliver the first one until the third quarter, which begins in July.

Boeing shares fell $2.25, or 3.1 percent, to $69.99 in premarket trading.