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The Boeing Company (BA)

  • Tue, Apr. 7, 7:49 AM
    • Boeing (NYSE:BA) edged out Airbus (OTCPK:EADSF, OTCPK:EADSY) in net new airplane orders and deliveries during Q1, according to figures released today.
    • Boeing recorded 110 net orders, after adjusting for cancellations and conversions between different models, vs. 101 aircraft for Airbus, which booked 84 new orders in March to bring its Q1 gross deals to 121 aircraft while suffering 20 cancellations.
    • Boeing posted 184 deliveries in Q1, up from 161 in the year-ago quarter due partly to a jump in production of its 787 Dreamliner; Airbus slipped to 134 deliveries vs. 141 a year ago, and its 42% quarterly market share was the lowest against its rival since Q1 2002.
    • Deliveries at both plane makers traditionally accelerate during the year, peaking in Q4.
  • Mon, Apr. 6, 6:13 PM
    • The International Association of Machinists and Aerospace Workers says it has withdrawn its application to organize flight attendants at Delta Air Lines (NYSE:DAL), saying some authorization cards submitted by workers contain insufficient information or questionable signatures.
    • The union says it intends to resume organizing and refile for an authorization vote in 12 months.
    • The IAM also is seeking to organize workers at Boeing (NYSE:BA) facilities in South Carolina, with a vote set for April 22.
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  • Sat, Apr. 4, 8:25 AM
    • Boeing (NYSE:BA) said yesterday it is on track to hit its delivery target of 120 Dreamliner commercial jets this year after delivering 30 to customers during Q1, easily beating last year's Q1 average pace of just six per month.
    • Five of the 11 deliveries in March were 787-9 models while the other six were the shorter 787-8 models. according to Dreamliner analyst Uresh Seth, who adds that Boeing so far has delivered more than half of the 787-8s ordered but fewer than 5% of the newer 787-9s.
    • "The more of these airplanes (787-9s) that are delivered the better Boeing’s financial results will look,” Seth says.
    • Boeing also said it received 34 new orders for Dreamliners in March, bringing the total orders for the 787 line to more than 1,100.
    • In total for the quarter, Boeing delivered 184 commercial airplanes, 23 more than in the same period last year; 121 of this year's Q1 deliveries were for high-volume 737 planes.
  • Thu, Apr. 2, 11:03 AM
    • "Just because a stock is up already, you haven't missed it if the story is really good," says Will Danoff, whose Fidelity Contrafund (MUTF:FCNTX) has smoked the market over his 25 years in charge, but trailed the S&P 500 last year.
    • With Contrafund pushing $113B in AUM, Danoff - on advice from Warren Buffett to bet big on the best ideas - has trimmed the number of stocks in the portfolio to 350 from 500.
    • Among the stocks where he's finding strong growth at a decent price is Associated British Foods (OTCPK:ASBFY): "They are taking Europe by storm," he says, and the chain is coming to America with an opening on Boston this fall, followed by other locations.
    • Others in the strong growth at a reasonable price category are Boeing (NYSE:BA) and 3M (NYSE:MMM).
    • Facebook (NASDAQ:FB): "Don't sell after the first double," says Danoff, believing the migration to mobile means the company will continue to increase its current $6 in revenue per U.S. user.
    • Source: Barron's
  • Wed, Apr. 1, 3:15 PM
    • Boeing (BA -1%) is today's biggest percentage loser among Dow stocks after Sterne Agee cut its estimates for Q1 earnings and aircraft deliveries because of a weaker than expected March performance.
    • Analyst Peter Arment says deliveries of both 737 and 777 model aircraft were below expectations, with 777 deliveries hurt by delays at a seating supplier.
    • Arment trims his estimate for FY 2015 aircraft deliveries to 177 from 180, and cuts his Q1 EPS estimate to $1.80 from $1.90 and below analyst consensus of $1.88.
    • The analyst points out that Boeing needs to book 40-60 new orders annually to sustain the current production rate on the 777 until the new 777X is ready for delivery late in 2019; YTD, Boeing has taken just seven orders for the 777.
    • Nvertheless, Arment reiterates his Buy rating and stock price target of $196, which is 30% above current levels and well above the $160 analyst consensus target.
  • Mon, Mar. 30, 7:24 AM
    • As part of its plan to double its fleet to 70 planes by 2020, Oman Air has ordered 20 Boeing (NYSE:BA) 737s, the airline's Chief Executive Paul Gregorowitsch said on Monday.
    • The order includes both the current generation of 737s, which will be delivered from 2017, as well as the re-engined 737 Max planes that will be delivered from 2019.
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  • Fri, Mar. 27, 3:43 PM
    • Bombardier (OTCQX:BDRBF, OTCPK:BDRAF) says it does not expect its CSeries aircraft to begin carrying commercial passengers until early 2016, pushed back from H2 2015, in another setback for the jetliner program.
    • New CEO Alain Bellemare says the CSeries will be certified in 2015 but will not be delivered until next year, three years later than originally planned; the plane, which Bombardier launched to compete in the 100-seat-plus category long dominated by Boeing (NYSE:BA) and Airbus (OTCPK:EADSF, OTCPK:EADSY), has run into a series of technical glitches and other setbacks, and program costs have surged to $5.4B from an original estimate of $3.4B.
    • Crossing into 2016 also means Bombardier would record the jet’s first revenue and delivery cash flow in its new fiscal year.
  • Wed, Mar. 25, 4:56 PM
    • China’s Hainan Airlines says it plans to buy 30 Boeing (NYSE:BA) 787 Dreamliner jets, valued at as much as $7.7B at list prices, in a boost for Boeing’s order book of Dreamliners, which after years of growth plateaued as jets were only available in 2020 and beyond.
    • Many of the Dreamliners ordered by Hainan are said to come from delivery positions once reserved for United Continental (NYSE:UAL), which is in negotiations with Boeing for some larger 777-300ER jets converted from a portion of its Dreamliner order now going to Hainan.
  • Wed, Mar. 25, 7:14 AM
    • A Boeing (NYSE:BA) 737 plane carrying 78 passengers landed safely at the main airport in St. Petersburg this morning after one of its engines failed.
    • The engines on the jet are made by CFM International, a joint venture between GE (NYSE:GE) and Safran (OTC:SAFRF).
    • "The plane made a safe landing ... no passengers were injured," Russian airline UTair (OTC:UTARY), which operated the flight, said in a statement.
    • The news comes just one day after a Germanwings flight, involving an Airbus A320, slammed into the French Alps.
  • Mon, Mar. 23, 7:03 PM
    • Science fiction becomes reality, as Boeing (NYSE:BA) has been granted a patent on a system that is designed to prevent explosion shockwaves from harming a target.
    • Just like the glowing energy shields seen protecting troops, machines and even spacecraft in science fiction movies and TV shows, the system is designed to protect a target such as a vehicle or building from the damaging effects of shockwaves from a nearby impact, using energy to deflect potential damage.
    • The design may not be quite as fantastic as it seems; the force field likely would also deflect light, leaving anyone inside totally blind and making it unsuitable for enveloping a target and being held in place for any length of time.
  • Fri, Mar. 20, 10:59 AM
    • Boeing (BA +0.6%) expects Southeast Asian demand for defense equipment to grow rapidly as economic growth enables the countries there to boost purchases, says the company's VP for the East Asia-Pacific region.
    • Boeing and other companies are trying to attract countries such as Malaysia and Singapore to purchase jet fighters, air refueling tankers and other military equipment as regional disputes proliferate over territory and resources.
    • Also, competition to win military deals in Asia has mounted as budget cuts in the U.S. and Europe push Boeing and its rivals to bid for Asian projects.
    • Boeing already gets 30% of its $90.8B in annual sales from outside the U.S., with a third coming from Asia.
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  • Tue, Mar. 17, 2:47 PM
    • The first Boeing (BA +0.4%) 787-9 Dreamliner aircraft assembled at the company's South Carolina plant has been delivered, to United Airlines (NYSE:UAL) after assembly was completed in January and test flights were conducted last month.
    • The facility in North Charleston, S.C., is projected to make ~84 Dreamliners per year by 2020; considering that Boeing has ramped up production, it means ~850 of the 787s will still be made each year in Washington state.
    • The delivery news comes as the Machinists union yesterday turned in a petition to the NLRB calling for a vote on unionization at the North Charleston plant.
  • Tue, Mar. 17, 8:02 AM
    • Boeing (NYSE:BA) says it could clinch a deal this year to build high-throughput communications satellites as businesses look to expand Internet access around the world to help them grow, Reuters reports.
    • Other space companies, like SpaceX, are looking into similar plans. The firm previously announced plans to build a system of 4,000 satellites in low Earth orbit for global Internet connectivity.
    • "The real key to being able to do these type of things is ultra high-throughput capabilities, where we’re looking at providing gigabytes, terrabytes, pedabytes of capability," said Jim Simpson, chief strategist for Boeing Network and Space Systems.
  • Mon, Mar. 16, 2:18 PM
    • Boeing’s (BA +1.2%) biggest union filed with the NLRB for a vote on unionizing 2,500 production workers at the company’s South Carolina plant, where the 787 Dreamliner is assembled.
    • The vote plan is the latest round in a long fight over the plant in North Charleston, S.C., Boeing’s first non-union plant for commercial jet assembly, which the company selected six years ago after several strikes by work at its main manufacturing base in Washington state.
    • The NLRB will need to review the filing to determine if the requirements for a unionization vote have been met; 30% of the workers in a potential union bargaining unit must sign authorization cards for an election to be held.
  • Mon, Mar. 16, 9:56 AM
    • Having learned from past mistakes, Boeing (BA +1.3%) is well-positioned to hit record production targets for its 737 by 2018, the head of its industrial system told Reuters.
    • "To the extent that we could accommodate uncertainty and risk, or reduce risk, we are much better postured today than when we have tried this in the past," said Pat Shanahan, who oversees production at the world's biggest planemaker.
    • Boeing's production lines face a crucial test as the company prepares to lift output of its bestselling jet by 24% while simultaneously shifting to the new 737 MAX.
    • The planemaker has not attempted such a production boost and model shift since 1997, when it was forced to stop assembly of its 747 jumbo and delay building a new version of the 737 for several weeks due to parts shortages and distraction from its merger with McDonnell-Douglas.
    • Previously: Boeing's move to boost 737 output is understandable but risky (Oct. 02 2014)
    • Previously: Boeing to hike 737 production rate to 52/month in 2018 (Oct. 02 2014)
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  • Fri, Mar. 13, 6:18 PM
    • Boeing (NYSE:BA) CEO Jim McNerney’s total compensation last year jumped 24% Y/Y to nearly $28.9M, including more than $14M in bonuses, according to an SEC filing.
    • Boeing says it exceeded the internal financial targets used to set executive incentives, even though its share price fell nearly 5% last year.
    • The bulk of McNerney’s increased compensation was in the form of a higher pension value, with stock and option awards broadly flat compared with 2013.
    • Separately, Lockheed Martin (NYSE:LMT) discloses that CEO Marillyn Hewson’s total compensation rose 34% to $33.7M following her second year in charge of the company.
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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.