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The Boeing Company (BA)

  • Oct. 25, 2013, 7:31 AM
    • The Federal Aviation Administration want airlines to carry out enhanced checks of lightning-protection systems on Boeing (BA) 777 aircraft after potentially hazardous corrosion was found on seven relatively young planes.
    • The FAA also wants carriers to replace certain parts that attach flight-control surfaces to the tail of  the jets, as moisture was leaking under the sealant used on these panels and causing the corrosion.
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  • Oct. 24, 2013, 11:43 PM
    • Boeing (BA) has commitments from several Chinese customers including state-owned airlines for some 200 737 Max planes, sources tell Reuters.
    • At list, the deals are worth somewhere in the neighborhood of $21B.
  • Oct. 24, 2013, 3:14 PM
    • Deutsche is out with some commentary on Boeing (BA -0.1%) following the company's Q3 results.
    • "On the call, management increased the peak deferred production balance target to $25B from the low $20B level, which is consistent with our thinking," analyst Myles Walton says.
    • Watson thinks "the break-even point for the 787 should still be in the 2015 timeframe" and Deutsche "still sees a path to $13/share in FCF in 2015 and $17/share in 2017."
    • Price target raised to $156 from $130.
    • For more on BA's quarter, including management's Q&A with Walton, see CC transcript
  • Oct. 24, 2013, 7:35 AM
    • South Korea is reportedly close to deciding that it will purchase Lockheed Martin's (LMT) F-35 fighter jets, although the country could also order a smaller number of Boeing (BA) F-15 planes.
    • The government could announce its plans in November as it looks to put the necessary funding in place. Those plans could include cutting the size of the order to 40-50 planes from 60.
    • Last month, Seoul rejected a tender from Boeing for its F-15 Silent Eagle model due to concerns about the aircraft's technological capability, especially compared with the F-35, which was also in the running. The rejection came even though Boeing's proposal was the only one of three that came in under the government's budget of 8.3T won ($7.2B).
  • Oct. 24, 2013, 7:15 AM
    • Korean Air has agreed to acquire $3.7B worth of aircraft from Boeing (BA) in a deal that comprises five 747-8 Intercontinentals, five 777-300ERs and one 787 Dreamliner.
    • Despite the latest order for the 747, the iconic jet could be on its final approach. Boeing says it remains committed to the plane, but it has cut production targets twice in six months, and will manufacture just 18 in each of the next two years. Airlines prefer newer two-engine planes that have the same range but burn less fuel.
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  • Oct. 23, 2013, 3:47 PM
    • BA CEO James McNerney on sequestration: "We do remain concerned about the impact that sequestration targets will have on our customers ... Notwithstanding these budget uncertainties, our Defense, Space & Security portfolio is optimized for the current environment with a reliable, proven, affordable systems and services that are being delivered on budget and on schedule."
    • McNerney on 787 reliability: "We still have some customers that ... we're worried about. We're putting people, we're putting spares, we're doing some engineering changes at the component level to increase reliability. We're addressed some software issues. Software false messaging is roughly a third of the issue here and that is frustrating for us and very frustrating for our customers."
    • Cowen's Cai von Rumohr: "Margin before R&D ... improved pretty nicely versus Q2. You mentioned the 787 as higher gross margins, were the gross margins on the 37 and 777 higher sequentially?" CFO Greg Smith: "Yeah, we had improvements on the 737, I’d say 777 was about flat and then a slight improvement on the 787 as I talked about and then of course the lower R&D. Those are really the big drivers, Cai." (transcript)
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  • Oct. 23, 2013, 7:46 AM
    • Boeing (BA) rises 1.9% premarket as the company's Q3 beats on both lines.
    • Q3 orders: $27B. Backlog is now $415B, up from a previous record of $410B.
    • Core operating margin rises 70 bps.
    • Q3 commercial airplane deliveries: 170.
    • BDS revenue growth by segment: Military Aircraft, -5%; Network & Space Systems, +9%; Global Services & Support, +10%.
    • Outlook: Core EPS of $6.50-6.65 (up from previous guidance of $6.20-6.40/share) on sales of $83-86B. Commercial deliveries of 635-645 (unchanged). (PR)
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  • Oct. 23, 2013, 7:32 AM
    • Boeing (BA): Q3 EPS of $1.80 beats by $0.25.
    • Revenue of $22.1B (+11% Y/Y) beats by $0.44B. (PR)
  • Oct. 23, 2013, 12:05 AM
  • Oct. 22, 2013, 5:30 PM
  • Oct. 22, 2013, 10:52 AM
    • "We didn’t seek initial certification for the A350 with lithium because we didn’t want to take any risk of delay,” says Didier Evrard, the head of Airbus' (EADSF +0.8%) A350 program.
    • After observing Boeing's (BA +1.1%) lithium ion woes, Airbus decided to fly the A350 with nickel-cadmium batteries first, before seeking to gain certification for the lithium ion technology "about a year into regular commercial operation," Bloomberg says.
    • As for comparisons with the Dreamliner, Evrard says Airbus' "lithium power design is sufficiently different."
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  • Oct. 21, 2013, 3:03 PM
    • Defense stocks emerged from last earnings season unscathed, despite worries that sequestration would begin to erode bottom lines. When all was said and done, Boeing (BA -0.8%), Lockheed Martin (LMT -2.6%), General Dynamics (GD -0.5%), Raytheon (RTN -2.5%), and Northrop Grumman (NOC -1.4%) all beat Street expectations for Q2.
    • This week, the market will get a fresh look at the sector, as Q3 reports begin to roll in — LMT kicks off the action tomorrow.
    • Coming up on Wednesday: Reports from BA, GD, and NOC.
    • RTN reports Thursday.
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  • Oct. 21, 2013, 1:56 PM
    • VivaAerobus orders 52 Airbus (EADSF) A320 jets.
    • The $5.1B deal marks the latest defection for Boeing (BA) and comes just two weeks after the announcement of the JAL deal for 31 A350s.
    • The first plane is set to be delivered in Q2 2014.
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  • Oct. 21, 2013, 9:49 AM
    • As tipped earlier this month, Abu Dhabi's Etihad Airways is in talks to place a multibillion-dollar order with Boeing (BA -0.4%).
    • Sources tell Reuters the airline may purchase 25-30 777Xs and as many as 30 additional 787 Dreamliners.
    • The deal's value could be in the neighborhood of $18B.
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  • Oct. 17, 2013, 12:53 PM
    • Boeing (BA +1.4%) is "still very much engaged" with South Korea regarding a multibillion tender offer for fighter jets.
    • The country restarted the bidding process last month after 15 former South Korean air force chiefs signed a petition opposing the F-15s due to concerns over the planes' capabilities..
    • "What they decided to do was to delay and take another look, so we're still very much engaged there with the F-15," Reuters quotes BA as saying.
  • Oct. 17, 2013, 4:35 AM
    • Boeing (BA) believes that Latin American countries other than Brazil could order over $10B worth of space and defense equipment over the next few years, company executive Roberto Valla has said.
    • Chile, Colombia, Mexico and Peru have the biggest needs and will drive demand.
    • In addition, Boeing could join up with Textron's (TXT) Bell Helicopter business to make a proposal for an upcoming Canadian tender for search-and-rescue equipment.
    • Meanwhile, the new generation of Boeing 747 planes are suffering from ice accumulation in engines
    • Boeing is working with GE (GE), which makes the engines, to prevent the build and thereby avert a malfunction.
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Company Description
Boeing Co, together with its subsidiariesdesigns, develops, manufactures, sells and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight and launch systems and services.