Jul. 15, 2015, 2:58 PM
- Boeing (BA -0.7%) and Airbus (OTCPK:EADSF, OTCPK:EADSY) say they are assessing whether commercial jetliner production could be affected by an explosion at a Washington state factory run by Zodiac Aerospace (OTC:ZODFF), a key supplier of interior components such as lavatories and overhead bins.
- Zodiac is one of the world’s largest suppliers of aircraft interiors to major plane makers, but in recent months it has been hit by a series of production and labor problems affecting supplies of passenger seats that have delayed jet deliveries and led to sharp criticism from its customers.
Jul. 15, 2015, 11:57 AM
- European energy majors BP, Royal Dutch Shell (RDS.A, RDS.B) and Total (NYSE:TOT) are likely to be among the first beneficiaries of the Iran nuclear deal and the anticipated removal of sanctions, while U.S. energy companies face being left in the cold.
- TOT could see Iran allowing it to resume construction of a 2B cf/day liquefied natural gas export facility; Shell says it has "done business in Iran before and will be interested in looking at new possibilities when sanctions are lifted."
- Italy's Eni (NYSE:E) also says it would consider investing in Iran again if sanctions are lifted and Iran improves its contract terms.
- A few avenues for U.S. companies may be open: U.S. firms will now be allowed to sell or lease commercial passenger aircraft to Iran as long as they procure licenses from the U.S. government, giving companies such as Boeing (NYSE:BA) an opportunity.
- Still, Iran has the reputation of a difficult place for outsiders to do business, ranking 130th on the World Bank’s ease-of-doing business list amid encounters with bureaucracy, episodic corruption and political interference.
Jul. 14, 2015, 7:40 PM
- The commercial aerospace segment still provides opportunities for double-digit gains over the next 18 months, as the "aero cycle has legs," J.P. Morgan analyst Seth Seifman says, initiating coverage of Boeing (NYSE:BA) and several peers with Overweight ratings.
- Boeing’s cash flow outlook has been controversial, but Seifman views 787 unit cost reduction as a powerful driver that can push free cash flow to $9.1B in 2017, 44% above 2015 estimates with potential for growth beyond; Seifman sees the precedent Boeing set by returning $8B of cash last year as a signal of confidence in future cash flow.
- General Dynamics' (NYSE:GD) balance sheet might drive upside, while Lockheed Martin (NYSE:LMT) could use its financial strength to create value, but Northrop Grumman (NYSE:NOC) is started at Underweight, as the analyst sees "fewer arrows left in the quiver" and expectations may be too high following recent outperformance in its shares.
- Initiated at Overweight along with Boeing: GD, LMT, SPR, TDG.
- Started at Neutral: BEAV, COL, PCP, TGI, TXT, HRS, LLL
- Earlier: JPMorgan initiates coverage on several aerospace plays
Jul. 14, 2015, 11:07 AM| Jul. 14, 2015, 11:07 AM | 10 Comments
Jul. 14, 2015, 2:25 AM
- FedEx (NYSE:FDX) is in talks to buy at least 25 more 767 freighters from Boeing (NYSE:BA) for about $5B, Bloomberg reports, stating the shipping company's directors met in Seattle over the weekend to discuss the deal.
- "We constantly work on aligning our fleet plans with our business needs," FedEx spokesman Jim McCluskey said by e-mail.
- Marc Birtel, a Boeing spokesman, said the Chicago-based planemaker had no comment.
- Previously: FedEx close to placing mega Boeing order (Jul. 08 2015)
Jul. 10, 2015, 11:57 AM
- Bombardier (OTCPK:BDRAF, OTCQX:BDRBF) shares continue to sink, extending historic lows following news that the airline maker is conducting a review of its Global 7000 and 8000 business jet programs, including the schedule for bringing the aircraft to market.
- RBC analyst Walter Spracklin considers another possible explanation for the stock price rout: China Eastern Airlines' order of 50 aircraft from Boeing (NYSE:BA), which he believes was likely for the 125-seat variant of the 737, which competes directly with Bombardier’s CSeries.
- RBC has previously highlighted China Eastern as the most likely Chinese airline to buy the CSeries based on the carrier’s current and expected fleet demands.
Jul. 9, 2015, 7:58 AM
Jul. 8, 2015, 6:43 PM
- Lockheed Martin (NYSE:LMT) and Textron (NYSE:TXT) have emerged as final contenders to buy United Technologies' (NYSE:UTX) Sikorsky Aircraft unit, which could be valued at ~$8B, Reuters reports.
- UTX reportedly is weighing offers from the two companies and may come to a decision by the end of the month, but it still could decide against an outright sale and instead spin off Sikorsky to shareholders in a tax-free deal.
- TXT, whose ~$12B market cap is only one fifth the size of LMT's $60B, is said to have reached out to P-E firms to put together a cash bid.
- Boeing (NYSE:BA), which had expressed interest in a potential deal, is no longer active in the sale process, and Airbus (OTCPK:EADSF, OTCPK:EADSY) is not in the running, according to the report.
- UTX +1.5% AH.
Jul. 8, 2015, 8:56 AM
- FedEx (NYSE:FDX) is about to place an order for as many as 50 Boeing (NYSE:BA) 767-300Fs and perhaps up to 10 777Fs, Leeham News and Comment reports.
- The list price for the 767 is $199.3M, valuing an order for 50 at nearly $10B. The 777F order could ring up another $3.2B.
- FedEx's current fleet: 378 planes - 88 are Airbus A300s and A310s and the rest are mostly from Boeing.
Jul. 7, 2015, 3:03 AM
- Loss of U.S. Export-Import Bank financing would put Boeing (NYSE:BA) at a "huge competitive disadvantage" since its rivals still have access to such financing support, the head of the company's commercial aircraft division told reporters.
- "We absolutely need Ex-Im Bank to compete on a level playing field," Ray Conner declared.
- Ex-Im is currently putting together a liquidation plan and completing transactions that had already been approved, but the lapse of the bank's charter last month means it cannot work on any new deals.
Jul. 6, 2015, 2:44 PM
- Airbus (OTCPK:EADSF, OTCPK:EADSY) beat Boeing (NYSE:BA) on orders in the first half of this year but remained behind on deliveries, according to the latest data provided by the plane makers.
- Airbus says it won orders for 382 aircraft in H1, with net orders after cancellations and conversions between models totaling 348, and delivered 304 planes to customers; Boeing says it won orders for 325 aircraft during the period, or a net 281 after adjustments, but delivered 381.
- Boeing is on track for record annual deliveries after delivering 723 commercial jets last year, and it estimates it will deliver 750-755 for FY 2015; June deliveries of the more expensive 787-9 (6) topped deliveries of the 787-8 (4) for the first time ever.
Jul. 2, 2015, 8:05 AM
- Despite its Falcon 9 rocket accident this weekend, SpaceX will still be allowed to compete for future launches of Air Force GPS satellites.
- In May, SpaceX won a two-year battle to have its Falcon 9 rocket certified to fly military and national security satellites - putting pressure on United Launch Alliance (LMT, BA).
- Previously: SpaceX breaks monopoly on military satellite launches (May. 27 2015)
Jul. 1, 2015, 7:20 PM
- Boeing (NYSE:BA) says it is raising list prices for its jetliners by 2.9%, in the company's annual price adjustment based on an internal formula that takes into account increases in the costs of goods, services and labor; prices rose 3.1% in 2014.
- The price of BA's updated 777X, due for delivery by 2020, rises to $400M in the new price list; the catalog prices do not reflect the industry's customary discounts.
- Separately, Wells Fargo believes any pressure on shares related to Congress' failure to reauthorize the Export-Import Bank’s charter - which expired last night - is unwarranted, since Congress could reauthorize Ex-Im in July, there is abundant liquidity for aircraft currently, and if necessary Boeing can finance its own deliveries.
Jun. 29, 2015, 3:28 PM
- Boeing (BA -2.5%) is one of the Dow's biggest losers on a day when all 30 components are down, as it becomes clear the U.S. government will not back export sales of its aircraft after the Export-Import Bank sunsets on June 30.
- By late Friday it became clear there would be no vote on the renewal of the Ex-Im charter before Congress goes into its Fourth of July recess, which starts Monday, as the measure is opposed mostly by conservative Republicans who view the bank as corporate welfare.
- The Ex-Im often is called “the Boeing bank,” because more than half its transactions are for Boeing aircraft; its loss, if maintained, could affect the company’s ability to compete against Airbus (OTCPK:EADSF, OTCPK:EADSY).
Jun. 26, 2015, 12:41 PM
- Atlas Air Worldwide (AAWW +0.6%) has echoed Boeing’s (BA -0.2%) optimism about the air cargo market, saying it will bring a 747-400 freighter out of desert storage and buy two 767 passenger aircraft to convert to freighters to go along with the 10th new 747-8 freighter the operator will add to its fleet in November.
- Cowen analysts say the decision to put the parked 747-400 back into service is the result of extra work created by the U.S. military bolstering its forces in eastern Europe.
- Atlas Air's additions also back up Boeing's increasingly bullish view of the air cargo market, having announced several freighter deals at the recent Paris Air Show.
Jun. 26, 2015, 7:33 AM
- Boeing (NYSE:BA) Chief Executive Officer James McNerney could pocket at least $3.9M in pension benefits annually for 15 years after he retires at the end of the month, Bloomberg reports.
- McNerney will be able to collect about $900k a year from two company-sponsored pension plans, according to a March 13 proxy filing.
- He’ll also receive $3M in each of the next 15 years from a separate retirement benefit the company gave him to offset forfeited pension payments from his two most recent employers, 3M and General Electric.
The Boeing Co. is an aerospace company that manufactures commercial jetliners and defense, space and security systems. Its products and tailored services include commercial and military aircraft, satellites, weapons, electronic and defense systems, launch systems, advanced information and... More
Sector: Industrial Goods
Industry: Aerospace/Defense Products & Services
Country: United States
Other News & PR