Boeing Says 787 Still On Track

Boeing said Thursday that its Dreamliner 787 was still on track for its first flight later this quarter, and the company stood by a previous full-year forecast.

The company said deliveries of new planes, including the 787, set to begin next year would hurt margins even as they produce growth longer-term.

The plane maker told its investor meeting that it planned to keep revamping itself despite the pressures on its commercial and defense businesses.

"The current market uncertainties and evolving customer requirements provide impetus to accelerate our pace of change to better compete and grow," CEO Jim McNerney told the investor meeting, which was broadcast over the Internet.

Chicago-based Boeing and rival Airbus are suffering as airlines and cargo operators defer plane deliveries amid weak demand in the economic recession.

Boeing said its test flight program of the fuel-efficient 787 was on schedule to begin this quarter. The plane has been plagued by repeated production delays, and James Bell, the company's finance chief, also said on Thursday that there were "more requests for deferrals."

Although the 787 and new 747-8 freighter will hurt margins initially, Bell said the two plane programs would generate "significant growth" in the longer term.