Boeing Delivery and Order Numbers: Read 'Em and Weep

By John N. Simon

Boeing (BA) released its commercial deliveries and (lack thereof) orders information for the six-month period ended June 30, 2009.

During the first half of 2009, Boeing delivered 246 aircraft, consisting of 190 737s, 6 747s, 6 767s and 44 777s; for the same period last year, the Company delivered 241 aircraft, consisting of 187 737s, 9 747s, 6 767s and 39 777s. Renton accounted for 77.2% of the deliveries this year versus 77.6% last year; the balance came from Everett.

Gross orders this year totaled 85 aircraft, consisting of 60 737s 2 767s, 10 777s and 13 787s; however, if you subtract the cancellation of orders placed in prior periods to arrive at the net orders, that number was one - uno - eins - as airlines cancelled 3 737s, 1 747, 5 767s 2 777s and 73 787s. During 2008, Boeing averaged 331 net commercial aircraft orders per each half-year. The difference is staggering! This just might turn out to be the worst year for orders...ever!

Just for the heck of it, here are Boeing’s net orders for the last five years: 2003 = 239; 2004 = 272; 2005 = 1,022; 2006 = 1,044; 2007 = 1,413; 2008 = 662. The cyclicality of this industry is very obvious: for every over-reaction, there is an equal and opposite over-reaction. Oh, the pain of it all!

Comments

[bricki:]

But Cramer said buy buy buy!!!!

Jul 07 03:59 PM

[WesAttaway:]

Well, that is just another reason to ignore Cramer.

Jul 07 07:19 PM

[Ryu Mei Co:]

Airlines everywhere are hurting due to less travelers from both commercial and business. Moreover the Asian SARS and the Swine Flu of this year made the matter worse. Plus the high oil price, cheap air fare, and too much competitions, we see more mergers or bankruptcies in the months to come. I saw a news title that said Cramer is suggesting a buy on Airlines. I think he must be crazy.

What do I know about airlines? Nothing at all! All I know is that my friends and relatives are travelling shorter distance or stay home during the Summer break. Yeah, I will bet on the Airlines if I have money to lose.

Jul 07 08:11 PM

[nobby73:]

I hate to think about the employee benefit costs Boeing must have, especially as an overhang from the glory days.

Jul 08 08:37 AM

[User 357705:]

Yet another reason for Boeing to decide to exit the commercial aircraft end of its business. Look for a sale to China who will need all the commercial aircraft now flying just for its domestic needs in less than twenty years.

Jul 08 09:14 AM

[kmanm:]

They can deliver tons of plane all year round but the fact is that is that BA is not a great stock. The stock is trading around 1996 level.

Jul 08 09:41 PM

[BeachRider:]

BA actually delivered 4 more planes this quarter than last quarter. The main issue for BA stock is when-do-the-787s-get-d... Unless their competitors self destruct, only the 787 is far-ahead of competitors. The order book went so-wild for a few years, and the order backlog so far out into the future, that something had to happen. You cannot keep booking pizza-orders when the pizzas won't show up for years.

Jul 09 10:31 AM

[oldman:]

not a Cramer fan, but I agree with him on this one. I've owned shares of BA since 1978 and still do.

Jul 11 08:11 AM