Winnipeg Free Press

Winnipeg Free Press (Newspaper) - October 26, 2006, Winnipeg, Manitoba a18 Winnipeg free press thursday october 26, 2006 business Boeing posts 31 per cent decline in profits by Dave Carpenter c hic ago ? Boeing co. Posted a 31 per cent decline in third Quarter profits wednesday and Wor ried some on Wall Street by saying costs were rising More than anticipated to reduce the weight of its much awaited fuel efficient 787 jetliner. Ceo Jim Mcnerney acknowledged that weight is a dogged Issue for the aircraft which Long before its planned debut in mid-2008, has helped Boeing seize momentum and close the Gap on Airbus in the commercial air plane mar Ket. But even though the company built in hundreds of millions of dollars of extra costs for the 787, Mcnerney said it is on schedule and will be done on wary investors pushed the Chicago based company a Stock lower despite its raised guidance for 2007 earnings and Revenue which reflect a prosperous commercial plane business. Its shares fell $2.73, or 3.3 percent to close at $80.86 on the new York Stock Exchange. The red Flag for Wall Street was the company a new forecast of Between $3.1 billion and $3.2 billion in research and development spending in 2006 and $3.2 billion to $3.4 billion in 2007 ? up from $3 billion for each year. Boeing cited extra costs for not Only the 787 but the passenger version of its new 747 wide body Jet As its engineers and suppliers tinker with needed changes. Mcnerney said the company is trying to be conservative with Cost estimates and anticipate contingencies. He also indicated there is a need to take off two per cent or More of the 787?s weight. The Cost concerns come four months after Boeing acknowledged discovering problems while testing a Section of the 787?s fuselage ? a glitch it said would not delay the planes debut. Problems and delays Are common with new air plane programs. Some analysts said there a no evidence that the 787 is headed for anything like the problems of Airbus a380 super jumbo which the Boeing rival recently announced would be delayed for a second year. ? associated press business watch Thomson to sell education division Toronto ? after months of speculation Thomson corp. Tax toc is reported to be near a plan to put its Thomson learning division up for Sale in a Deal that could be Worth us$5 billion or More. The Wall Street journal reported wednesday that Thom son ? which for years has been shedding print oriented businesses to concentrate on providing data electronically to lawyers accountants financial Deal makers and other professionals ? regards the education division As not mov ing As quickly As hoped to electronic platforms. The division Thomson a second largest after its Legal and regulatory business and ahead of Thomson financial had Revenue of us$2.3 billion last year with pre tax operating profits of $350 million from its textbooks tests and online courses. Transcontinental wins 10-year contract Montreal ? printing company transcontinental inc. Tax has won a 10-year Magazine printing contract from trader corp. Valued at about $115 million including $75-million contract Extension. Montreal based transcontinental said it will print Verti Cal guides and related materials in the maritime Quebec and Manitoba under the Extension and Book $40 million in new business for Ontario Saskatchewan and Manitoba. The contract which goes into effect on Jan. 1, covers the production of Auto trader Auto Hebdo and related vehicle listings publications buy & sell publications triad new Homes Condo guide and other trader products. Forestry sector Ripe for consolidation Montreal ? Canadas battered forestry sector is Ripe for consolidation says the ceo of Abi Tibi consolidated inc. Tax Aan Industry giant that has just closed four sawmills and Cut nearly 700 jobs. With the competitive Cost nature of our business As it becomes More commodity pricing. We must find ways to consolidate the Industry and even to consolidate on a local basis say for instance our sawmills John Weaver said wednesday on a conference Call with analysts. Earlier Montreal based Abi Tibi announced a third Quarter loss of $48 million Down from a year earlier profit of $99 million As sales declined. Shell Canada reports $581-m profit Calgary ? Shell Canada Ltd. Tax she powered its Way to a third Quarter profit of $581 million up from a year earlier $457 million As higher crude Oil prices and refining income More than compensated for a slump in Nat ural Gas prices. The Canadian Oil and Gas major which received a $7.7-Bil?Lion buyout offer from Parent Royal dutch Shell pc nose ads this week said wednesday it continues to Lay the foundation for More growth in its Oil Sands and unconventional Gas businesses. Orange shortage could squeeze Supply Lakeland Fla. ? an anticipated Small crop of Florida oranges could squeeze the worlds juice Supply by seven per cent this year pushing . Retail prices up by As much As 50 cents a gallon about 13 cents a litre. A state economist told the Florida Citrus commission on wednesday that . Orange juice companies May need to import 21 per cent More juice to compensate for the states Hurricane induced shortage. The anticipated shortfall and Low production during the two previous seasons ? also because of hurricanes ? have already prompted juice suppliers such As Pepsico Tropicana products and the coca cola minute maid to boost prices. ? compiled from news services Cinpak earnings jump to $7.8m plastic packaging Manu the year to just under $26 facture Cinpak Ltd. Has million or 40 cents per share reported a sizable increase from $16.9 million or 26 in net earnings for both the cents a share in the same third Quarter and the first period last year. That was nine months of this year. Despite the fact sales were the Winnipeg based firm essentially unchanged at which has 10 production $111.64 million compared to plants in Canada and the $111.63 million for the nine United states announced month period the company yesterday that its net earn added. Ings for the third Quarter of Cinpak manufacturers this year jumped to $7.8 Mil and distributes packaging lion or 12 cents a share from materials and packaging $5.3 million or eight cents a machines which Are used Pri share in the third Quarter of Marily for the Protection of 2005. Perishable foods beverages that boosted net income pharmaceuticals and in med for the first nine months of ical applications ;