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rffrydr
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 Posted: Tue Dec 15, 2009 8:54 pm Post subject: |
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Stock hit $60 in '97; then again in 2000 bellringer; then '05-'08 swan song. It spent as much time below that level. Hard to believe this period covers the ascent of EEM's and the singular attentions of mighty China and deficit politics. This is the kind of affront to buy-and-hold that really sends 'em packing. 
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HenryTo
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HenryTo
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HenryTo
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| Posted: Thu Aug 27, 2009 11:32 pm Post subject: |
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Boeing (finally) surprises on the upside - and is now on track to deliver its first 787 jet in the fourth quarter of next year:
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Boeing sees 787 flight this year, 3rd-qtr charge
ATLANTA (Reuters) - Boeing Co (NYSE:BA - News) said on Thursday its 787 Dreamliner would make its first flight by the end of this year, with initial delivery expected in the fourth quarter of 2010, and its shares shot up 8 percent.
Alex Hamilton, an analyst with Jesup & Lamont Securities, said Boeing's statement helped ease some questions that have surrounded the carbon-composite 787.
"There was a lot of uncertainty and a lot of the chatter on the street was 'would this aircraft ever fly?'" he said. "It sort of ends the uncertainty."
Boeing, the No. 2 plane maker behind EADS (Paris:EAD.PA - News) unit Airbus, also plans to take a third-quarter charge. The manufacturer said it has concluded that the initial test-flight planes of the long-delayed 787 have no commercial market value because of necessary modifications that have been made.
It added that costs previously recorded for the first three test planes would be reclassified as a research and development expense, resulting in an estimated pretax charge of $2.5 billion, or $2.21 a share, against results for the third quarter.
Analysts were expecting a profit of $1.21 a share for the third quarter, according to Reuters Estimates.
Hamilton said the updated outlook likely meant Boeing would post a loss for the third quarter.
"This is money that was already spent and this is money that they're reclassifying as an R&D expense ... The message should be clear -- it's still an economically viable aircraft," Hamilton said.
The date of the first test flight has been delayed repeatedly because of production problems and a two-month labor strike.
The latest delay was in June, when Boeing said the plane would not fly as scheduled during the second quarter so it could address a structural problem.
The company, which had said earlier this year that the first 787 deliveries to customers could occur in the first quarter of 2010, also said it projects achieving a production rate of 10 airplanes per month in late 2013.
Boeing shares were up 8 percent, or $3.79, at $51.61 in morning New York Stock Exchange trading. Shares of 787 suppliers such as Spirit AeroSystems Holdings (NYSE:SPR - News) and Rockwell Collins (NYSE:COL - News) also gained. |
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rffrydr
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| Posted: Tue Jun 23, 2009 10:49 pm Post subject: |
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Dangerous Dreamliner delays
Published: June 23 2009 22:50 | Last updated: June 23 2009 22:50
The ticking clock has once again got the better of Boeing. The company announced on Tuesday that, for the fifth time, its flagship new aircraft will not be taking to the air on schedule. The discovery of an area of structural weakness means that it will be several weeks before a new plan for flight tests can be set. There is now a significant chance that the entire Dreamliner programme becomes a commercial disaster.
The previous delay was related to fastners, compounded by last year’s machinists strike. With perhaps 4m parts on the modern airliner, even small problems in one area can then impact on other parts. For instance, earlier this decade BAE Systems discovered a initially small problem in the Nimrod military aircraft, which ultimately resulted in great delays and catastrophic cost overruns. The latest postponement at least suggests that Boeing’s very short timetable for testing and certification is too aggressive.
Even brief delays are expensive, both for Boeing and members of its long supply chain. For instance, thanks to delays to its Airbus A380 programme, analysts estimate the break even point has risen from 250 deliveries to about 400. As staffing makes up the vast bulk of expenses, time equates to higher costs that must then be spread over eventual sales.
Meanwhile, delivering late allows customers to impose a financial penalty. The worst scenario for Boeing would be a failure to get production up to speed in time – a rate of 10 aircraft a month is targeted by 2012 – and then not catch up with the delivery schedule for the 860 on order. In such a case, there would little hope of making a profit on the programme for several years. The clock ticks ever louder.
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HenryTo
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| Posted: Tue Jun 23, 2009 10:31 pm Post subject: |
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Morningstar's latest analyst notes on BA:
| Quote: | | Boeing BA announced Tuesday that it has delayed the initial flight of its ultra-efficient 787 Dreamliner--previously scheduled for this quarter--because of structural problems within the side-of-body section of the plane. The required modification appears to be serious enough to delay the issuance of a new schedule by several weeks and highlights the grave concern about further potential unknown unknowns involved in building this revolutionary commercial aircraft. This push-out should also serve as a glaring reminder of the significant risks still inherent in the program and the firm's public goal of producing 10 Dreamliners per month by 2010, which we view as exceedingly optimistic, given a supply chain that is only as strong as its weakest link (we model roughly 35 787 deliveries for all of 2010 and about 4-5 monthly deliveries in 2011). Despite the disappointing news, we're sticking to our fair value estimate, as we think our below-guidance earnings and delivery assumptions remain in the ballpark. We are also reiterating our very high fair value uncertainty rating for the aerospace giant. |
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HenryTo
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HenryTo
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HenryTo
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| Posted: Tue Apr 14, 2009 4:09 am Post subject: |
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Morningstar's comments on BA:
| Quote: | | Boeing BA said Thursday that it has re-evaluated its intermediate-term production plans for the firm's widebody suite of aircraft beginning in mid-2010 as a result of waning global air travel demand and the pain it has inflicted on the aerospace giant's customer base. The jet maker will cut monthly production of the 777 to five from seven starting in June of next year and delay plans to ramp up production of its 747-8 and 767 lines. Although Boeing plans to maintain the production pace of its narrowbody 737, we wouldn't be surprised to see cuts on this program before 2011, too, in light of significant uncertainty in the aircr aft financing markets. These production revisions coupled with lower escalation pricing expectations will affect Boeing's first-quarter results by about $0.38 per share, the majority of the earnings hit coming from its 747 platform. Despite the news, we still think the range of outcomes surrounding our fair value estimate is in the ballpark, and we will have more details about these production revisions and the jet maker's opinion on Gates' defense budget recommendations when the company reports first-quarter results April 22. |
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rffrydr
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| Posted: Mon Apr 13, 2009 10:21 am Post subject: |
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Boeing joining the ranks of the mighty fallen:
http://www.zacks.com/stock/news/19041/Boeing:+Reality+Checking+In
| Quote: | April 10, 2009 was not a “Good Friday” for The Boeing Company (BA), as it culminated a spate of bad news!
First, the Company announced that its net orders for the first quarter of ’09 totaled a negative 4 shipsets, as previous orders for 32 787s had been cancelled, which more than offset the 28 orders it had received for other models.
Then it was learned that Defense Secretary Gates appears to be intent on terminating a number of programs, including the Army’s Future Combat Systems program – for which Boeing is the prime contractor – and the Air Force’s F-22 Raptor – for which Boeing is an associate contractor.
Subsequently, Boeing announced that it will adjust production at its Everett facility, with the 777 declining from 7 aircraft per month to 5, while 747-8 and 767 rates will be maintained at current levels of about 1 each per month, rather than being sped up; that announcement also included the admonition that these production decisions, coupled with unfavorable price escalation, would reduce Q1-09 earnings by ~ 38˘ per share.
Finally, it was reported that S&P’s Rating Services is reviewing Boeing’s debt for a possible downgrade from A+. |
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rffrydr
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| Posted: Fri Feb 20, 2009 11:17 am Post subject: |
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Boeing and Airbus have 1480 planes set for delivery this year, but more than half will be deferred.
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HenryTo
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HenryTo
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| Posted: Sat Jan 17, 2009 12:08 pm Post subject: |
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Boeing plans to "rein in" suppliers and to bring more parts manufacturing of the 787 back in house:
http://www.businessweek.com/bwdaily/dnflash/content/jan2009/db20090116_971202.htm?chan=rss_topStories_ssi_5
| Quote: | Boeing, which had originally planned to put its first 787 into the air in August 2007, now expects the initial test flight by this coming June. Customers, many of them irked by the delays, should take delivery on the first version in the spring of 2010. Boeing's stock, which topped 106 a share in the fall of 2007 as record orders for the new plane rushed in, now hovers around 42.
Putting Suppliers on Notice
Because of political and commercial sensitivities, Boeing executives are playing their cards close to the vest on just how far they will go in backing away from outsourcing. Changes could unsettle suppliers who are believed to account for some 70% of the 787-8 in dollar terms, a far larger share than Boeing has outsourced on other planes. Chicago-based Boeing has outsourced much of the work on the new plane in a bid to contain costs and because foreign purchasers and their governments like to see work on the planes done in their countries.
Boeing's legion of partners span the globe. Mitsubishi, Kawasaki, and Fuji in Japan, for instance, produce the wings, forward fuselage, and center wing box, respectively. Sweden's Saab makes cargo doors and Italy's Alenia Aeronautica produces a horizontal stabilizer and central fuselage. Companies in Britain, France, Germany, and South Korea make other parts. And at least 10 U.S. companies, ranging from General Electric (GE) to Moog (MOGA) chip in on various parts.
However, high-level managers in the commercial planes division have been hinting for weeks that changes in this supply chain are in the works. Scott Carson, who heads Boeing Commercial Airplanes, in late November told editors at Aviation Week (like BusinessWeek, a publication of The McGraw-Hill Companies (MHP)) that Boeing is determined to fix its supply chain woes. "We fully recognize that we made some mistakes in that regard," Carson said. "On the 787-9, we are pulling more of the engineering back inside to try and alleviate some of the issues we've had on the 787-8." |
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HenryTo
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rffrydr
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| Posted: Sun Nov 02, 2008 4:53 pm Post subject: |
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Strike settled. Effects far and wide. Not too late for fourth quarter.
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