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The Boeing Company (BA)

  • Nov. 5, 2014, 7:02 PM
    • Boeing (NYSE:BA) is facing pressure to devise a replacement for its discontinued 757 jetliner, favored by U.S. carriers for trans-Atlantic flying, as American Airlines (NASDAQ:AAL) studies a new Airbus (OTCPK:EADSF, OTCPK:EADSY) model as an alternative.
    • American’s interest in a long-range A321neo signals that Boeing may have to speed planning for a new 757 version, says Teal Group's Richard Aboulafia, adding that Boeing can’t afford to see airlines go to Airbus for a 757 successor with it already trailing its rival in narrow-body sales.
    • AAL says the long-range version of the A321neo would have extra fuel tanks to boost its range by ~100 nautical miles past the 3,900 nautical miles of Boeing’s 757-200, and would burn ~25% less fuel than the older Boeing.
  • Oct. 31, 2014, 8:44 AM
    • Boeing (NYSE:BA) and Monarch Airlines have finalized a previous order for 30 737 MAX 8s, marking the beginning of the British carrier's transition to an all-Boeing single-aisle fleet.
    • The order is worth more than $3.2B at current list prices, and includes options for 15 additional 737 MAX 8s.
    • The 737 MAX has accumulated 2,325 orders to date and is the fastest selling airplane in Boeing history.
    • BA +0.8% premarket
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  • Oct. 22, 2014, 2:13 PM
    • Boeing (BA -4.3%) has been sliding steadily despite beating Q3 earnings expectations, as investors focus on disappointing cash flow results, a metric it had said was one of the most important to watch for growth in the next few years.
    • "The lack of cash in 3Q and only a modest change to the operating cash guidance for the year are likely to disappoint," overshadowing strong operating performance in the divisions, RBC Capital analyst Robert Stallard says.
    • Analysts on Boeing's earnings conference call also expressed concern that the company’s planned production increases across its jet programs would delay a ramp-up in shareholder payments.
    • Boeing also said accumulated losses on the 787 program broke through the $25B barrier during Q3, a mark it had said it expected to hit next year and suggesting reducing costs on the program is taking longer than expected.
  • Oct. 22, 2014, 8:05 AM
    • Net income of $1.4B, or $1.86 per share vs. $1.2B, or $1.51 per share in the same quarter a year ago. Core earnings, which exclude some pension and other costs, rose to $2.14 per share from $1.80.
    • Revenues by segment: Commercial Airplanes +15%; Military Aircraft +3%; Network & Space Systems -9%; Global Services & Support -1%.
    • The company repurchased 8M shares during the quarter for $1B, leaving $5.8B remaining under the current repurchase authorization expected to be completed over approximately the next one to two years.
    • Total backlog at quarter-end was a record $490B, up from $440B at the beginning of the quarter, and included net orders for the quarter of $73B.
    • The company updated its core earnings outlook for 2014 to $8.10-$8.30 per share from a prior $7.90-$8.10.
    • Q3 results
  • Oct. 22, 2014, 7:31 AM
    • Boeing (NYSE:BA): Q3 EPS of $2.14 beats by $0.16.
    • Revenue of $23.8B (+7.5% Y/Y) beats by $780M.
    • Shares +3% PM.
    • Press Release
  • Oct. 22, 2014, 7:01 AM
    • Boeing (NYSE:BA) and Commercial Aircraft of China have launched a pilot project to turn used cooking oil (referred to in China as "gutter oil") into jet fuel.
    • Their plant, based in the southeastern Chinese city of Hangzhou, will be able to convert just under 240K liters, or 63.4K gallons, a year of used cooking oil into fuel, Boeing said in a news release.
    • The two estimate that 1.8B liters of fuel could be produced in China a year using the oil.
    • BA +0.7% premarket
  • Oct. 21, 2014, 5:30 PM
  • Oct. 20, 2014, 4:59 PM
    • Boeing (NYSE:BA) is revising its master schedule for developing the new U.S. Air Force aerial refueling tanker designed to replace the aging fleet of KC-135s, adding to uncertainty about a plane that already has run up ~$1B in excess costs for the contractor.
    • The Air Force and the GAO have praised Boeing’s progress on the $50B program to build 179 of the planes, which is based on the company’s 767 jetliner, but the service estimates Boeing will have to absorb $1B in costs for exceeding a $4.9B ceiling to develop the first four planes.
    • Boeing says the schedule revision is intended to keep it on track to meet an Aug. 2017 deadline for delivery of 18 combat-ready tankers, equipped to carry ~212K lbs. of aviation fuel and operate at altitudes up to 43K ft.
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  • Oct. 17, 2014, 7:55 AM
    • Airbus (OTCPK:EADSF, OTCPK:EADSY) cuts its production plans for the A330 long-range jet, in the first indication aircraft makers may struggle to sustain record output levels for some of their planes as they introduce upgraded models.
    • Airbus says it will reduce the build rate for the A330 to nine aircraft per month in next year's Q4, after currently building a company record 10 A330s a month.
    • Sales for the A330 have slowed, as more efficient rivals, including the Boeing 787 (NYSE:BA) and Airbus's own A350 jet become available.
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  • Oct. 16, 2014, 9:58 AM
    • Boeing (BA -0.4%) says the Brazilian army has expressed interest in buying some of its CH-47 Chinook helicopters, and says it continues to view Brazil as an important partner for defense and commercial projects.
    • Ties between the U.S. and Brazil are starting to recover from deep strains, and Brazil scrapped plans to buy Boeing F/A-18 fighter jets, but the U.S. State Department has approved several other possible U.S. weapons sales to Brazil this year, including a $169M deal for 16 Boeing AGM-84L Harpoon missiles.
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  • Oct. 15, 2014, 7:45 AM
    • Airbus (OTCPK:EADSF, OTCPK:EADSY) bags its largest-ever single order for commercial jetliners, as India’s IndiGo signs an agreement to buy 250 A320neo planes.
    • The list price for each of the narrow-body planes is $102M, putting the collective list price of the order at $25.5B.
    • The A320neo is a new version of the popular A320 jets that includes a new engine and other devices to cut fuel consumption; Airbus has sold more than 3,250 of the planes, beating the 2K-plus orders Boeing (NYSE:BA) has booked for its 737 Max.
  • Oct. 13, 2014, 10:59 AM
    • Boeing (BA +0.5%) says Garuda Indonesia will buy 50 of its latest generation 737-MAX jets, worth $4.9B at list prices; the Indonesian flag carrier’s order includes the conversion of an existing order for four older-generation 737-800 jets to the MAX variant.
    • The news follows Friday's announcement of an Airbus (OTCPK:EADSF ,OTCPK:EADSY) order for 70 of its A320 aircraft from China Aviation Supplies, worth $7B at list prices.
    | 1 Comment
  • Oct. 7, 2014, 12:57 PM
    • Boeing (BA -1.3%) says it expects its air freight traffic to more than double in the next 20 years, increasing at an annual rate of 4.7%, as cargo traffic levels continue to strengthen after several years of stagnation.
    • Boeing predicts carriers will buy 840 new freighter planes valued at $240B in the next 20 years, with 70% expected to be large planes such as the 747-8 and 777, which can carry more than 80 tons of cargo in a single takeoff.
    • Stronger air cargo demand also would be good news for FedEx (FDX -0.7%) and UPS (UPS -1.2%), but shares of all three companies are lower today amid global growth concerns.
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  • Oct. 6, 2014, 10:34 AM
    • Boeing (BA +0.5%) and Alaska Airlines (ALK -0.3%) have announced a $990M order for 10 Next-Generation 737-900ERs to replace the airline's fleet of 737-400s.
    • Including the new order, Alaska Airlines has 74 jets on order from Boeing.
    | 1 Comment
  • Oct. 2, 2014, 7:15 PM
    • Boeing's (NYSE:BA) move to ramp up production of its 737 jets to 52/month in 2018, up from 42 currently and from a planned level of 48 in 2017, was not a surprise and is quite understandable - but it also may be "dangerous."
    • Combined with Airbus (OTCPK:EADSF, OTCPK:EADSY), who is likely to match Boeing’s move with one of its own for the production rate of its competing A320 aircraft, the general consensus is that the rate is unsustainable; a Canaccord survey of aircraft supplier companies "raises questions about the sustainability of rates above 100/month for Boeing and Airbus” single aisle jets.
    • But from Boeing’s perspective, the move is understandable: There is a race to deliver the next generation of single aisle jets to airlines, and Boeing is behind.
    • RBC aerospace analyst Robert Stallard says he is sticking with the view that the 737 rate increase will be a positive for Boeing’s earnings and cash from 2018, and that the moves by Boeing and eventually Airbus will not oversupply the market through to the end of the decade.
    • But Airbus exec John Leavy predicts: "Three airlines tell us they’re going to improve their market share by 10%-15%. But someone is going to be very successful, someone very unsuccessful, and someone in the middle."
  • Oct. 2, 2014, 9:35 AM
    • In response to strong market demand, Boeing (BA +0.6%) will increase production of its 737 program to 52 airplanes per month in 2018. Boeing currently produces 42 airplanes per month at its factory in Renton, Washington.
    • The company previously announced plans to increase the production rate to 47 airplanes per month in 2017.
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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.