Good News for Boeing - Analyst Blog
15 Mai 2013 - 11:01AM
Zacks
US aerospace giant The Boeing Company (BA) has
finalized an important order with Turkish Airlines for 70 Boeing
single-aisle 737 aircrafts. The deal − considered as the largest
Boeing order in Turkish Airlines’ history − is valued at $6.9
billion at list prices.
The order, originally placed in early Apr 2013, involves the
purchase of 40 737 MAX 8s, 10 737 MAX 9s and 20 next-generation
737-800 jets. The deal also has options for an additional 25 737
MAX 8s.
This latest deal brings Boeing’s total number of 737′s ordered to
date to 1,285. The company currently has over 3,100 unfilled orders
for 737s. The 737 model is the company’s most up-to-date
single-aisle jet that features the latest-technology CFM
International LEAP-1B engines designed to enhance fuel efficiency,
reliability and passenger comfort level.
The 737 MAX aircraft continues to gain traction owing to its 13%
added fuel efficiency and lowest operating costs. Serving in more
than 220 cities and 99 countries, Turkish Airlines remains positive
on its long-time partnership with Boeing. The airline received its
100th direct delivery from Boeing in Mar 2013. Turkish
Airlines currently operates next-generation 737s and 777-300
extended range jets and has over 100 Boeing 737s and 777s on
order.
Meanwhile, following a nearly four-month suspension Boeing finally
resumed deliveries of its high-tech 787 Dreamliner jet. The company
has delivered a new Dreamliner to All Nippon Airways Co., a unit of
ANA Holdings Inc, marking the second year-to-date delivery. All
Nippon plans to restart Dreamliner flights on Jun 1.
Boeing last handed over a 787 to an airline before Jan 16, when
regulators halted all Dreamliners as two battery overheating
incidents in Jan 2013 compelled all 50 Boeing 787 airplanes to be
grounded. The 787 Dreamliner is the first passenger jetliner
manufactured mostly of lightweight and environmentally friendly
composite material.
The company remains on track to meet its goal of delivering more
than 60 787s this year. Boeing has also boosted its production of
the 787 to 7 per month, up from 5 per month previously. It expects
to increase the rate to 10 per month by 2013 end and will make the
first delivery at this new rate by next year.
Although recommencing deliveries will lower Boeing's profit margin
in the near term, the first jet delivery with a redesigned battery
system marks a crucial moment for the company. It will allow Boeing
to generate revenues for completed sales of the jet.
This will also boost its cash flow this year and will ease its
inventory level. The company registered weak free cash flow in the
first quarter 2013 as inventory increased for continued production
of new 787s.
Boeing currently retains a Zacks Rank #3 (Hold). Other stocks in
the defense domain currently performing well are Erickson
Air-Crane Inc. (EAC) with a Zacks Rank #1 (Strong Buy),
and Wesco Aircraft Holdings, Inc. (WAIR) and
Northrop Grumman Corp. (NOC), both with a Zacks
Rank #2 (Buy).
BOEING CO (BA): Free Stock Analysis Report
ERICKSON AIR-CR (EAC): Free Stock Analysis Report
NORTHROP GRUMMN (NOC): Free Stock Analysis Report
WESCO AIRCRAFT (WAIR): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
Northrop Grumman (NYSE:NOC)
Graphique Historique de l'Action
De Sept 2024 à Oct 2024
Northrop Grumman (NYSE:NOC)
Graphique Historique de l'Action
De Oct 2023 à Oct 2024