An analysis of Boeing company for Finance class. Designed to feel like a professional stock review including industry trends, catalysts, and potential growth using a FCF model.
This document provides a marketing plan for Boeing. It begins with an introduction to Boeing's history and business units. It then discusses Boeing's values, vision, and goals. A situational analysis is presented, including a SWOT analysis. Boeing's main target segments are identified as corporate clients, particularly airline companies, and defense/government contractors. Corporate clients are segmented geographically, demographically, behaviorally, and psychographically. Defense/government contractors are segmented geographically and demographically. The document proposes strategies for each target segment.
Boeing has faced many difficulties in 2001, including a downturn in the aviation industry after 9/11 that led to layoffs and production cuts. However, analysts say Boeing's commitment to diversifying away from commercial aviation into defense, satellites, and services through acquisitions will help insulate it from downturns. Boeing is also pursuing emerging areas like aircraft financing, in-flight internet services, and air traffic management to boost its success going forward.
This document analyzes Boeing's performance management and corporate strategy. It discusses Boeing's revenue breakdown between commercial airplanes, defense, space and security. It analyzes Boeing's profitability ratios like gross margin and operating margin compared to industry and competitor Airbus. The document also examines Boeing's efficiency metrics like receivable turnover, inventory turnover and asset turnover. Finally, it evaluates Boeing's macroenvironment, SWOT analysis and concludes with recommendations.
Production rates, revenue and profit pose little risk to the
aerospace industry in 2016 as backlogs are full. Rather,
planemakers ponder the risk and reward of spending money to
raise future production rates.
Khan Mohd Eshtiaque, is currently a Masters in Management student at IE Business School. Previously, he interned as an M&A summer analyst at BDO's corporate finance division in Dubai, where he worked in deals in a variety of sectors including, natural resources, healthcare, facilities management, technology, real estate, utilities and agribusiness. Prior to that, Eshtiaque interned at the Private Banking department of HSBC.
Embraer incorporation by boeing is more a crime of homeland against brazilFernando Alcoforado
While the Brazilian population was distracted by the World Cup, another crime of homeland was being practiced in Brazil with the definitive denationalization of Embraer that will put in check the policy of productive and technological autonomy in the area of Defense of Brazil, will impair the Brazilian industry that will be affected by reduced domestic purchases of parts and components that will be made largely in the United States by Boeing and will lose control in the management of the company as a whole that will be assumed by Boeing.
Bombardier Aerospace is pleased to present the 2012 edition of its Business Aircraft Market Forecast. The forecast incorporates a 20-year outlook of business jet industry, Bombardier's long-term vision of the business jet market and an in-depth look at the market drivers in the major regios af the world.
An analysis of Boeing company for Finance class. Designed to feel like a professional stock review including industry trends, catalysts, and potential growth using a FCF model.
This document provides a marketing plan for Boeing. It begins with an introduction to Boeing's history and business units. It then discusses Boeing's values, vision, and goals. A situational analysis is presented, including a SWOT analysis. Boeing's main target segments are identified as corporate clients, particularly airline companies, and defense/government contractors. Corporate clients are segmented geographically, demographically, behaviorally, and psychographically. Defense/government contractors are segmented geographically and demographically. The document proposes strategies for each target segment.
Boeing has faced many difficulties in 2001, including a downturn in the aviation industry after 9/11 that led to layoffs and production cuts. However, analysts say Boeing's commitment to diversifying away from commercial aviation into defense, satellites, and services through acquisitions will help insulate it from downturns. Boeing is also pursuing emerging areas like aircraft financing, in-flight internet services, and air traffic management to boost its success going forward.
This document analyzes Boeing's performance management and corporate strategy. It discusses Boeing's revenue breakdown between commercial airplanes, defense, space and security. It analyzes Boeing's profitability ratios like gross margin and operating margin compared to industry and competitor Airbus. The document also examines Boeing's efficiency metrics like receivable turnover, inventory turnover and asset turnover. Finally, it evaluates Boeing's macroenvironment, SWOT analysis and concludes with recommendations.
Production rates, revenue and profit pose little risk to the
aerospace industry in 2016 as backlogs are full. Rather,
planemakers ponder the risk and reward of spending money to
raise future production rates.
Khan Mohd Eshtiaque, is currently a Masters in Management student at IE Business School. Previously, he interned as an M&A summer analyst at BDO's corporate finance division in Dubai, where he worked in deals in a variety of sectors including, natural resources, healthcare, facilities management, technology, real estate, utilities and agribusiness. Prior to that, Eshtiaque interned at the Private Banking department of HSBC.
Embraer incorporation by boeing is more a crime of homeland against brazilFernando Alcoforado
While the Brazilian population was distracted by the World Cup, another crime of homeland was being practiced in Brazil with the definitive denationalization of Embraer that will put in check the policy of productive and technological autonomy in the area of Defense of Brazil, will impair the Brazilian industry that will be affected by reduced domestic purchases of parts and components that will be made largely in the United States by Boeing and will lose control in the management of the company as a whole that will be assumed by Boeing.
Bombardier Aerospace is pleased to present the 2012 edition of its Business Aircraft Market Forecast. The forecast incorporates a 20-year outlook of business jet industry, Bombardier's long-term vision of the business jet market and an in-depth look at the market drivers in the major regios af the world.
Microsoft hopes to bury iPhone and Android with the upcoming Windows Phone 7. The new software will be unveiled on October 11th and is expected to be available on phones by November. Microsoft is currently fourth in the US smartphone market behind Blackberry, Apple, and Google. Microsoft also sued Motorola for allegedly infringing on nine of its patents related to Android phones. Ford's CEO said the company aims to have zero net debt by 2011 after borrowing heavily in 2006 during its turnaround efforts. Airbus plans to double its technology staff in India to 400 by 2013 and increase outsourcing as it expects air traffic in India to grow 16% this year.
The document analyzes key financial ratios for The Boeing Company from 2013-2014 and compares them to ratios for Airbus and industry averages. Boeing's current ratio decreased slightly but remains above Airbus. Several of Boeing's ratios declined from 2013-2014, such as inventory turnover, equity ratio, and book value per share. However, the profit margin ratio and earnings per share increased. Compared to Airbus and industry averages, Boeing performed well on some ratios but needs to improve others to strengthen its financial position relative to competitors.
2015 Flight Global and PwC Top 100 Aerospace CompaniesDouglas Burdett
The document discusses the annual Top 100 analysis of the aerospace industry by Flight International and PwC. It finds that 2014 was another boom year for the industry, with all-time sales records and double-digit growth. However, the coming period may present more challenges due to economic uncertainties in countries like Brazil, India, Russia, and potentially China. Even so, the industry would still be in strong shape even if half of the large aircraft order books were canceled. The analysis provides details on the financial performance and position of the top 20 companies in the industry.
Bombardier Inc. is a Canadian manufacturer of planes and trains headquartered in Quebec. The document provides an analysis of Bombardier's strategy including its history, competitive situation, business environment projections, and proposed strategic adaptations. It recommends strategies for Bombardier to maintain its industry-leading positions in aerospace and rail transportation in the changing global market.
The document discusses delays faced by Boeing in delivering its 787 Dreamliner aircraft. Key reasons for delays included an unexpected shortage of fasteners from suppliers, underestimating the work required to develop flight control software, and labor strikes threatening progress. Boeing also faced challenges transitioning to new composite materials. To address delays, Boeing worked more closely with suppliers and revised project timelines and plans.
- Bombardier's existing strategy of developing new aircraft with higher capacity and passenger comfort has been successful, but their aging regional aircraft models need replacing.
- The aircraft industry has experienced steady growth over 30 years but also downturns due to economic crises. Demand is increasing for new fuel efficient aircraft seating 100-150 passengers.
- The recommendation is for Bombardier to launch the new CSeries aircraft family to replace aging models and compete effectively with Embraer. While the CRJ1000 provides some modern aircraft, the CSeries would allow Bombardier to better serve the growing 100-150 seat market and improve its financial position.
The document discusses Goodrich Corporation's presentation at an aerospace and defense finance conference. It summarizes Goodrich's financial results, portfolio attributes, and themes in the commercial aircraft and defense industries. Goodrich expects continued strong demand for new commercial aircraft and aftermarket services driven by increasing global air travel.
This document provides a case analysis and recommendations for Bombardier regarding its options in dealing with subsidies provided to its competitor Embraer by the Brazilian government. It analyzes three options for Bombardier: 1) urging Canada to impose trade sanctions on Brazil, 2) negotiating directly with Brazil and Embraer, or 3) having Canada match Brazilian subsidies. It ultimately recommends the second option of restarting negotiations as posing the fewest risks in terms of costs and public opposition, while still allowing the other options if negotiations fail. The analysis draws on academic literature regarding international trade, political strategies, and subsidies to support this recommended course of action.
1. Bombardier is a Canadian company specialized in aerospace and transportation industries. It has two main business units: aircraft and trains.
2. The aircraft business is facing difficulties with the CSeries program signing fewer contracts than expected. The train business is performing better with contracts in Asia.
3. Bombardier's strategic model focuses on mobility solutions, local presence in key markets, and customer satisfaction. For aircraft, it offers commercial and business jets but the CSeries program is struggling.
Quite an extensive look on Bombardier including the analysis of key performance ratios over the last 5 years and also a look at CSR within Bombardier. Achieved a first on this piece of work.
Module- Corporate Analysis year 2.
Key Challenges for the European Aerospace SuppliersEric Ciampi
The document discusses three main challenges facing European aerospace suppliers over the next decade: 1) Developing robust and agile supply chains to keep up with growing demand and complexity, 2) Extending their manufacturing and engineering footprints to more global supply chains, and 3) Taking on more innovation and technology development work for OEMs. It provides examples of how suppliers are responding through consolidation, risk sharing with OEMs, and expanding internationally. OEMs are also pushing suppliers to rationalize their supply bases and improve quality and delivery.
Germany has a large and innovative aerospace industry, being the third largest in Europe. It has over 155 companies and over 93,000 employees. The industry is growing and projects strong long-term demand. Major global aerospace companies like Airbus and Rolls-Royce have large manufacturing facilities in Germany. The industry focuses on areas like aircraft structures, engines, maintenance, and military aviation. However, the supply chain is fragmented and Germany lacks strong systems integrators. This creates opportunities for foreign companies to partner with German firms or take over work packages.
PwC Aerospace & Defense 2012 Year In Review and 2013 ForecastDouglas Burdett
The document summarizes the performance of the top 100 aerospace and defense companies in 2012. Key points include:
- Commercial aerospace performed strongly, driving overall revenue growth of 4% and record orders despite declines in defense spending.
- Boeing had the largest revenue increase at $13 billion due to strong commercial aircraft sales.
- Sequestration cuts impacted defense spending in 2013, and companies face pressure to improve productivity and transparency.
- Commercial aerospace is expected to see continued growth in 2013 with over 600 new aircraft deliveries, while defense revenues decline 4-5%.
Aleris is an aluminum processing company that serves key growth markets such as building and construction, automotive, and aerospace. It has 13 facilities globally and expects revenue to grow from $2.6 billion in the last fiscal year to over $10 billion in the next 10 years, driven by an increasing demand for aluminum in the automotive industry, where aluminum use is expected to grow 11% annually, as well as continued growth in the aerospace industry through 2020. Aleris is well positioned in these industries with facilities and investments made to serve major customers like Ford, BMW, Airbus and Boeing.
Catalyst Corporate Finance Brazil Oil and Gas 2013Emma Dowson
Recent major oil & gas discoveries in Brazil’s offshore deepwater fields will move the country into the top five producers globally by 2020. Exploration auctions in 2013 will boost M&A activity as international corporates across the supply chain position themselves to benefit from the associated investment.
Gabriel strategy report sp jain school of global managementedwin john
The report is part of a global immersion project included in the MBA course at SP Jain School of Global Management. The Objective of the project was to support a current organisation in expanding its business globally by leveraging unique business expansion strategies.
Microsoft hopes to bury iPhone and Android with the upcoming Windows Phone 7. The new software will be unveiled on October 11th and is expected to be available on phones by November. Microsoft is currently fourth in the US smartphone market behind Blackberry, Apple, and Google. Microsoft also sued Motorola for allegedly infringing on nine of its patents related to Android phones. Ford's CEO said the company aims to have zero net debt by 2011 after borrowing heavily in 2006 during its turnaround efforts. Airbus plans to double its technology staff in India to 400 by 2013 and increase outsourcing as it expects air traffic in India to grow 16% this year.
The document analyzes key financial ratios for The Boeing Company from 2013-2014 and compares them to ratios for Airbus and industry averages. Boeing's current ratio decreased slightly but remains above Airbus. Several of Boeing's ratios declined from 2013-2014, such as inventory turnover, equity ratio, and book value per share. However, the profit margin ratio and earnings per share increased. Compared to Airbus and industry averages, Boeing performed well on some ratios but needs to improve others to strengthen its financial position relative to competitors.
2015 Flight Global and PwC Top 100 Aerospace CompaniesDouglas Burdett
The document discusses the annual Top 100 analysis of the aerospace industry by Flight International and PwC. It finds that 2014 was another boom year for the industry, with all-time sales records and double-digit growth. However, the coming period may present more challenges due to economic uncertainties in countries like Brazil, India, Russia, and potentially China. Even so, the industry would still be in strong shape even if half of the large aircraft order books were canceled. The analysis provides details on the financial performance and position of the top 20 companies in the industry.
Bombardier Inc. is a Canadian manufacturer of planes and trains headquartered in Quebec. The document provides an analysis of Bombardier's strategy including its history, competitive situation, business environment projections, and proposed strategic adaptations. It recommends strategies for Bombardier to maintain its industry-leading positions in aerospace and rail transportation in the changing global market.
The document discusses delays faced by Boeing in delivering its 787 Dreamliner aircraft. Key reasons for delays included an unexpected shortage of fasteners from suppliers, underestimating the work required to develop flight control software, and labor strikes threatening progress. Boeing also faced challenges transitioning to new composite materials. To address delays, Boeing worked more closely with suppliers and revised project timelines and plans.
- Bombardier's existing strategy of developing new aircraft with higher capacity and passenger comfort has been successful, but their aging regional aircraft models need replacing.
- The aircraft industry has experienced steady growth over 30 years but also downturns due to economic crises. Demand is increasing for new fuel efficient aircraft seating 100-150 passengers.
- The recommendation is for Bombardier to launch the new CSeries aircraft family to replace aging models and compete effectively with Embraer. While the CRJ1000 provides some modern aircraft, the CSeries would allow Bombardier to better serve the growing 100-150 seat market and improve its financial position.
The document discusses Goodrich Corporation's presentation at an aerospace and defense finance conference. It summarizes Goodrich's financial results, portfolio attributes, and themes in the commercial aircraft and defense industries. Goodrich expects continued strong demand for new commercial aircraft and aftermarket services driven by increasing global air travel.
This document provides a case analysis and recommendations for Bombardier regarding its options in dealing with subsidies provided to its competitor Embraer by the Brazilian government. It analyzes three options for Bombardier: 1) urging Canada to impose trade sanctions on Brazil, 2) negotiating directly with Brazil and Embraer, or 3) having Canada match Brazilian subsidies. It ultimately recommends the second option of restarting negotiations as posing the fewest risks in terms of costs and public opposition, while still allowing the other options if negotiations fail. The analysis draws on academic literature regarding international trade, political strategies, and subsidies to support this recommended course of action.
1. Bombardier is a Canadian company specialized in aerospace and transportation industries. It has two main business units: aircraft and trains.
2. The aircraft business is facing difficulties with the CSeries program signing fewer contracts than expected. The train business is performing better with contracts in Asia.
3. Bombardier's strategic model focuses on mobility solutions, local presence in key markets, and customer satisfaction. For aircraft, it offers commercial and business jets but the CSeries program is struggling.
Quite an extensive look on Bombardier including the analysis of key performance ratios over the last 5 years and also a look at CSR within Bombardier. Achieved a first on this piece of work.
Module- Corporate Analysis year 2.
Key Challenges for the European Aerospace SuppliersEric Ciampi
The document discusses three main challenges facing European aerospace suppliers over the next decade: 1) Developing robust and agile supply chains to keep up with growing demand and complexity, 2) Extending their manufacturing and engineering footprints to more global supply chains, and 3) Taking on more innovation and technology development work for OEMs. It provides examples of how suppliers are responding through consolidation, risk sharing with OEMs, and expanding internationally. OEMs are also pushing suppliers to rationalize their supply bases and improve quality and delivery.
Germany has a large and innovative aerospace industry, being the third largest in Europe. It has over 155 companies and over 93,000 employees. The industry is growing and projects strong long-term demand. Major global aerospace companies like Airbus and Rolls-Royce have large manufacturing facilities in Germany. The industry focuses on areas like aircraft structures, engines, maintenance, and military aviation. However, the supply chain is fragmented and Germany lacks strong systems integrators. This creates opportunities for foreign companies to partner with German firms or take over work packages.
PwC Aerospace & Defense 2012 Year In Review and 2013 ForecastDouglas Burdett
The document summarizes the performance of the top 100 aerospace and defense companies in 2012. Key points include:
- Commercial aerospace performed strongly, driving overall revenue growth of 4% and record orders despite declines in defense spending.
- Boeing had the largest revenue increase at $13 billion due to strong commercial aircraft sales.
- Sequestration cuts impacted defense spending in 2013, and companies face pressure to improve productivity and transparency.
- Commercial aerospace is expected to see continued growth in 2013 with over 600 new aircraft deliveries, while defense revenues decline 4-5%.
Aleris is an aluminum processing company that serves key growth markets such as building and construction, automotive, and aerospace. It has 13 facilities globally and expects revenue to grow from $2.6 billion in the last fiscal year to over $10 billion in the next 10 years, driven by an increasing demand for aluminum in the automotive industry, where aluminum use is expected to grow 11% annually, as well as continued growth in the aerospace industry through 2020. Aleris is well positioned in these industries with facilities and investments made to serve major customers like Ford, BMW, Airbus and Boeing.
Catalyst Corporate Finance Brazil Oil and Gas 2013Emma Dowson
Recent major oil & gas discoveries in Brazil’s offshore deepwater fields will move the country into the top five producers globally by 2020. Exploration auctions in 2013 will boost M&A activity as international corporates across the supply chain position themselves to benefit from the associated investment.
Gabriel strategy report sp jain school of global managementedwin john
The report is part of a global immersion project included in the MBA course at SP Jain School of Global Management. The Objective of the project was to support a current organisation in expanding its business globally by leveraging unique business expansion strategies.
This document discusses leveraging virtual teams. It defines a virtual team as people who work interdependently across space, time and boundaries using technology. Virtual teams are used to save time and money from less travel, provide greater reach through new opportunities, and allow for easier collaboration. The document provides tips for keeping virtual teams engaged such as making personal connections, emphasizing purpose, and building trust. It also offers suggestions for setting norms, etiquette, structure, and use of technology tools to optimize virtual teams.
The document discusses the benefits of exercise for mental health. Regular physical activity can help reduce anxiety and depression and improve mood and cognitive function. Exercise causes chemical changes in the brain that may help protect against mental illness and improve symptoms.
1) The author describes flying on a Boeing 787 Dreamliner operated by LOT, which was one of the only airlines in Europe flying the aircraft at the time.
2) The author notes being impressed by the aircraft but also comments on Boeing's short customer satisfaction survey about the onboard entertainment system, which only consisted of 3 simple questions.
3) Shortly after the author's flight, the entire 787 fleet was grounded due to issues with the aircraft's electrical system and batteries causing small fires, which led to Boeing's stock prices dropping. The grounding was the first of its kind by the FAA since 1979.
Governments have decided collectively that the world needs to limit the average global temperature increase to no more than 2 °C and international negotiations are engaged to that end. Yet any resulting agreement will not emerge before 2015 and new legal obligations will not begin before 2020. Meanwhile, despite many countries taking new actions, the world is drifting further and further from the track it needs to follow.
The energy sector is the single largest source of climate-changing greenhouse-gas emissions and limiting these is an essential focus of action. The World Energy Outlook has published detailed analysis of the energy contribution to climate change for many years. But, amid major international economic preoccupations, there are worrying signs that the issue of climate change has slipped down the policy agenda. This Special Report seeks to bring it right back on top by showing that the dilemma can be tackled at no net economic cost.
The report:
Maps out the current status and expectations of global climate and energy policy – what is happening and what (more) is needed?
Sets out four specific measures for the energy sector that can be quickly and effectively implemented, at no net economic cost, to help keep the 2 °C target alive while international negotiations continue.
Indicates elements of action to achieve further reductions, after 2020.
Demonstrates that the energy sector, in its own interest, needs to address now the risks implicit in climate change – whether they be the physical impacts of climate change or the consequences of more drastic action later by governments as the need to curb emissions becomes imperative.
See more: http://www.worldenergyoutlook.org/energyclimatemap/
The document provides an overview of Avionics Full-Duplex Switched Ethernet (AFDX), a deterministic network based on Ethernet that provides guaranteed bandwidth and quality of service for avionics systems. AFDX addresses limitations of standard Ethernet by utilizing virtual links to emulate point-to-point connections with dedicated bandwidth. The document then describes how Actel FPGAs and intellectual property cores can be used to implement AFDX-compliant interfaces for use in avionics systems.
Boeing is the world's largest aerospace company and leading manufacturer of commercial jetliners and defense systems. It produces commercial and military aircraft, satellites, weapons, electronic systems, and provides related services. In 2008, Boeing's annual turnover was $60.9 billion. Founded in 1916, Boeing pioneered commercial aviation and has played a major role in U.S. space programs and defense contracting. It now employs over 70,000 people globally and has major operations across the U.S., Europe, and Asia.
The document appears to be discussing the timeline and development of the Boeing Dreamliner airplane. It includes headings like "Unexpected Shortage of Fasteners" and "Underestimation of Work Content" which seem to reference challenges faced during the development process. Tables are presented tracking whether various stages were on the "Bleeding Edge" or "Leading Edge" and had potential "Threats" or a "Lack of Coordination". The final paragraph discusses convergence of LEAN, 6σ and SCOR models.
Boeing has numerous corporate social responsibility initiatives focused on education, the environment, military veterans, humanitarian relief, health, the arts, and community engagement. Some of the key programs include providing STEM education to over 200 student teams, helping 2 billion people in South Asia and Brazil through sustainable farming and biofuel projects, donating $31 million since 2000 for humanitarian relief in disaster-stricken areas, and engaging over 23,000 military veterans to work on social welfare and innovation projects. Boeing also supports local non-profits and communities through volunteer programs and donations totaling $27.4 million.
The Boeing Dreamliner crisis in the era of social media analytics | buzzientTBJ Investments, LLC
- The Boeing Dreamliner crisis has damaged the company's brand and impaired public confidence due to technical problems with the plane's lithium batteries.
- Social media provides a way for Boeing to quickly gauge consumer sentiment and feedback about issues with the Dreamliner.
- Analysis of social media discussions showed sentiment taking a precipitous drop on January 12th as it became clear the battery problems affected multiple aircraft. The volume of negative posts about Boeing increased sharply as well.
The Boeing 377 Stratocruiser was developed towards the end of World War II by adapting an enlarged upper fuselage onto the lower fuselage and wings of the B-50 Superfortress bomber. It had a double-decker fuselage that provided seating for over 100 passengers and could fly nonstop across the Atlantic. While complex and expensive to produce, it served as the flagship of airlines like Pan Am and BOAC from 1949 until being replaced by early jetliners in the 1960s. Only 56 Stratocruisers were built before production ended in 1950.
Boeing Webinar - Integrating Quality in Portfolio Management - oct 2010Brent Barton
The document discusses integrating quality into portfolio management. It introduces Brent Barton and Chris Sterling who discuss their experience with Agile and quality practices. It then tells a story about Earl, a strategic planner, Geoff a project manager, Huang a test engineer, and Sonia a program manager. It discusses how practices like continuous integration, definitions of done, and release definitions of done can help deliver high quality work and manage risks. Strategic planners are advised to focus on value and balance quality with constraints like schedule and cost. Agile practices like prioritizing by value and adaptive planning can help deliver the most valuable work at the right quality levels.
1-2 pages of five supply chain lessons learned from the Bo.pdfConceptcreations1
1-2 pages of five supply chain lessons learned from the Boeing case. Each lesson can be in a
short paragraph.
Managing New Product Development and Supply Chain Risks: The Boeing 787 Case The 787
Dreamliner's unconventional supply chain To reduce the 787's development time from six to four
years and development cost from $10 to $6 billion, Boeing decided to develop and produce the
Dreamliner by using an unconventional supply chain new to the aircraft manufacturing industry.
The 787s supply chain was envisioned to keep manufacturing and assembly costs low, while
spreading the financial risks of development to Boeing's suppliers. Unlike the 737s supply chain,
which requires Boeing to play the traditional role of a key manufacturer who assembles different
parts and subsystems produced by thousands of suppliers (Figure 3 ), the 787's supply chain is
based on a tiered structure that would allow Boeing to foster partnerships with approximately 50
tier-1 strategic partners. These strategic partners serve as "integrators" who assemble different
parts and subsystems produced by tier-2 suppliers (Figure 4). The 787 supply chain depicted in
Figure 4 resembles Toyota's supply chain, which has enabled Toyota to develop new cars with
shorter development cycle times Figure 4 Redesigned supply chain for the Dreamliner program
Table 3 Comparison of Boeing's strategy for its 737 and 787 programs
Managing New Product Development and Supply Chain Risks: The Boeing 787 Case
Christopher S. Tang and Joshua D. Zimmerman UCLA Anderson Schood
ctangearnderson.uda.edu joshua zimmerman.20096anderson.uda.edu Commented by James I.
Nelson M.S. MBCP, CORP Business Continuity Services To stimulate revenue growth and
market response, Boeing decided to develop the 787 Dreamliner. The 787 Dreamliner is not only
a revolutionary aircraft, but it also utilizes an unconventional supply chain intended to drastically
reduce development cost and time. However, despite significant management efforts and capital
investment, Boeing is currently facing a series of delays in its schedule for the maiden flight and
plane delivery to customers. This paper analyzes Boeing's rationale for the 787's unconventional
supply chain, describes Boeing's challenges for managing this supply chain, and highlights some
key lessons for other manufacturers to consider when designing their supply chains for new
product development. Acknowiedyments: We uould like to thank Wiliam Schmidt of the Hartard
Business School and ane anonymous reviewer for their constructive comments an an earlier
version of this paper. Introduction Since the U.S. government deregulated air travel in 1977 ,
more airlines have entered the market causing fierce price competition. As airfares continued to
decline, the total number of U.S. passengers per year has risen from approximately 240 million
to 640 million from 1977 to 1999. At the same time, U.S. commercial aircraft manufacturers
have faced major competition from European companies..
The global aerospace market is worth more than over nine trillion US dollars, with main markets in United States, France, Germany, and the UK. This industry’s largest aerospace and defense manufacturers are Boeing and Airbus. For almost a century, the pioneering companies that make-up Boeing have been at the forefront of innovation in aviation. Boeing enjoyed monopoly in aviation until Airbus was born was 1970. The Airbus-Boeing competition is marked as duopoly in the large jet airliner market since 1990s.
This study is commissioned to examine the global market, innovation, & patent filing trends by Airbus and Boeing in the last five years i.e., since 2017 till March 2022.
The annual aircraft deliveries by both Airbus and Boeing in FY2021 show a rise by 7.9% and 116.6% respectively from FY2020. Though, Airbus is the winner in terms of number of aircraft orders and deliveries in FY2021. There is also a rise in consolidated revenue in FY 2021 from previous year for both Airbus and Boeing by approx. 4% and 7% respectively. However, there is a slight dip in R&D expenditure in 2021 by approximately 4% and 9% respectively for Airbus and Boeing maybe due to COVID-19 crisis. In FY2021, for Airbus, revenue mainly poured in from Europe followed by Asia-Pacific regions; and for Boeing, its major customers were from North America followed by Europe. The world airliner census data for FY2021 represents that there are a greater number of operational aircrafts by Boeing than that for Airbus. Boeing accounted for 8,907,948 flights during the year, whereas Airbus edged slightly ahead with 9,401,161 flights scheduled for the year 2021. While Airbus is the overall winner in this category, Boeing was behind far more widebody flights with 1,103,294 flights compared to 645,220 with Airbus aircraft.
In terms of patent filing trend, Boeing is the winner with 14,994 applications (and 5,228 patent families) filed whereas Airbus has filed 11,440 applications (and 3,713 patent families) between January 2017, and April 2022. The filed patents have been categorized into 60 technological domains related to aerospace. The number of inventors for Boeing is more than double the number for Airbus. The number of withdrawn applications is higher in case of Airbus as compared to Boeing. The number of rejections during prosecution is also higher for Airbus as compared to Boeing.
Finally, in terms of design, safety, and passenger experience, Airbus and Boeing have their own advantages and challenges. The report discusses some of the aspects based on which a comparison has been made.
Sampling of Current LCC IssuesImprovements in the NewsCom.docxjeffsrosalyn
Sampling of Current LCC Issues/Improvements in the News
Commercial Airliner Aircraft - (Recent News Briefs in AIAA Morning Launch)
· Boeing Plans to Cut Up to 8000 jobs from Commercial Aircraft Division
· Boeing 737 Accelerated Assembly Automation
· Boeing Changing Supplier Terms Amid Cost Cutting Efforts
· Low Oil Prices Improving Airline Revenue Outlook
· American Airline Tops Profit Estimates, Defers Aircraft Deliveries
· Southwest Airline Delays Delivery of Boeing 737-Max Aircraft
· Boeing 737-Max & 777X 2018 Status
· Bombardier Delivers First C Series Jetliner - Challenge to Boeing & Airbus
· Airbus Cuts Production Rate of A380 Super Jumbo Airliners
· Airbus $1.5 Billion Loss From A350 & A400M Development Issues
Boeing plans to cut up to 8,000 airplane jobs: sources | Reuters
www.reuters.com/article/us-boeing-redundancies-idUSKCN0WW0AF
Mar 30, 2016 - Boeing Co plans to cut up to 8000 jobs this year at its commercial ... about 1,600 through voluntary layoffs and 2,400 by leaving open positions ...
Boeing Rolling Out Accelerated Assembly Automation At 737 Factory.
Reuters (6/17) reported that Boeing is debuting the Spar Assembly Line (SAL) at its 737 manufacturing plant in Renlon, Washington, “adding a new robotic system to drill holes in the main beams inside each wing known as spars, industry sources said.” According to the article, the roll out of the new systems bolsters Boeing’s headway into automation “as it prepares to boost output of its best-selling airliner, while also preparing the ground work for future aircraft that will be designed with radical new manufacturing methods in mind.” The aircraft manufacturer “says greater automation will cut the amount of ‘rework’ caused by production glitches, reduce injuries and support sharp increases in output at factories.”
Boeing Changes Payment, Inventory Terms With Suppliers Amid Cost Cutting Efforts.
Reuters (7/7) reports that Boeing has ramped up its efforts to “conserve cash, cut costs in its supply chain and trim inventory of parts in its factories,” informing suppliers that it will take up to 120 days to pay for its expenses, “rather than 30 days as in the past.” According to sources close to the matter, Boeing is introducing the new payment scheme this year. In addition, the source said that the company is also decreasing its overall factory inventory and is relying on suppliers to store parts and equipment. Confirming the reported changes in a statement to Reuters, Boeing spokeswoman Jessica Kowal said that in order to stay competitive, “we are in the process of adjusting the payment terms of our large suppliers,” adding that “our new payment terms are in line with their payment schedules to their own suppliers.”
Low Oil Prices Fueling Airline Revenue Outlook, IATA Says.
USA Today (6/2) reports that according to new data released on Thursday by the International Air Transport Association (IATA), carriers worldwide are expected to generate a total of $3.
In this presentation there is analysis for Boeing, history, sales, supply side analysis, Commercial Aircraft Demand Determinants, Market Drivers, Order Comparison, Delivery Comparison, Current Strategy
The document provides an outlook on the global aerospace and defense industry in 2012. It finds that the commercial aircraft industry is expected to continue growing due to increasing orders and production, while parts of the defense industry may decline due to decreased military spending, particularly in the US and Europe. Overall, the financial performance of top aerospace and defense companies is projected to be similar to 2011. The document also discusses trends in commercial aircraft production, air traffic control modernization, global defense spending, business jets, and regional outlooks.
This document provides an executive summary of Oliver Wyman's 2023-2033 Global Fleet and MRO Market Forecast. It finds that while aviation recovered significantly in 2022 from COVID-19 impacts, it faces ongoing challenges including labor shortages, supply chain issues, and higher costs that could temper growth. The forecast projects the global fleet will expand 33% to over 36,000 aircraft by 2033. However, labor shortages of 18% for pilots and 14% for mechanics in North America could constrain growth. Supply chain problems and planned higher production rates at major manufacturers also risk hampering delivery timelines. Addressing emissions remains a long-term issue for the industry as demand is expected to continue rising rapidly.
This document provides an executive summary of Oliver Wyman's 2023-2033 Global Fleet and MRO Market Forecast. It finds that while aviation recovered significantly in 2022 from COVID-19 impacts, it faces ongoing challenges including labor shortages, supply chain issues, and higher costs that could temper growth. The forecast projects the global fleet will expand 33% to over 36,000 aircraft by 2033. However, labor shortages of 18% for pilots and 14% for mechanics in North America could constrain growth. Supply chain problems and planned higher production rates at major manufacturers also risk hampering delivery timelines. Addressing emissions remains a long-term issue for the industry as demand is expected to continue rising rapidly.
Boeing and Airbus are the two dominant manufacturers in the global aircraft industry. While Boeing currently has a larger market share and generated higher revenues in the first half of 2015, Airbus has received more net orders so far in 2015 with 815 orders compared to Boeing's 447. Both companies are taking steps to grow their presence in important markets - Boeing is developing its first aircraft assembly facility in China, while Airbus opened a new facility in the US. However, Airbus faces pressure to meet its deadline to deliver the first A320neo aircraft by the end of 2015 after engine problems caused further delays in testing. Overall, while Boeing's financial performance has improved, Airbus has a larger backlog of orders that will support
Goodrich Corporation reported its first quarter 2009 results with the following key highlights:
- Sales decreased 3% to $1.696 billion compared to first quarter 2008 due to impacts from the Boeing strike and foreign exchange rates.
- Net income per share increased 10% to $1.35 compared to first quarter 2008.
- The full year 2009 sales outlook is $6.9 billion, a decrease of 2-3% compared to 2008.
- The full year 2009 earnings per share outlook is $4.50-$4.75, lower than 2008 due to higher pension expenses.
This document provides an overview and analysis of the 2013 financial performance of the top 100 aerospace companies based on a report compiled by PwC. Some key points:
- The aerospace industry has experienced steady revenue growth averaging 5.6% annually since 2005 and over 5% growth in 2013, with anecdotal evidence that the industry is thriving.
- Boeing maintained the top spot with record revenue and profits in 2013, while Airbus also saw profits rise substantially though revenue growth lagged Boeing's.
- Western defense budget cuts have impacted companies like Lockheed Martin and Northrop Grumman but profits generally held steady as they diversified into commercial aerospace.
- Civil aviation continues to power
The document analyzes the proposed Boeing 7E7 project. It estimates the weighted average cost of capital (WACC) for Boeing's commercial division to be 15.44%, making it the required rate of return for the 7E7 project to create shareholder value. Sensitivity analysis shows the project's internal rate of return could range from 8.6-21.3% depending on variables like sales volume, price, development costs, and cost of goods sold. Given market demand, competition from Airbus, and potential profitability above the WACC, the board is recommended to approve the project despite risks around costs, the supply chain, and competing with Airbus' new A380.
Boeing is the world's largest aerospace company founded in 1916. It operates commercial and military aircraft and defense systems. Boeing employs over 158,000 people globally and is a leading U.S. exporter. It has two main business sectors, Commercial Airplanes and Integrated Defense Systems, and operates through five principal segments. Boeing faces challenges from the global economic slowdown and changes in defense budgets but maintains a strong order backlog and focus on innovation.
The aerospace industry was worth $838 billion globally in 2017, with commercial aircraft production making up 61% of the industry at $180.3 billion. In 2018, the value of new commercial aircraft was projected to be $270.4 billion. The document then provides details on key players in the commercial aerospace industry such as Boeing, Airbus, and Embraer. It discusses factors affecting the industry and provides a history of Boeing, including impacts from the Boeing 737 MAX issues, such as significant losses, undelivered orders, and effects on suppliers. Finally, it outlines actions Boeing is taking to address the 737 MAX issues through software updates, training improvements, and global outreach.
- Global passenger traffic grew 5.3% in 2012, in line with long-term trends of 5% annual growth. However, airlines increased capacity by less than the traffic increase, boosting load factors.
- The commercial airline industry is expected to be profitable in 2013, generating $10.6 billion in net profits. However, high fuel costs remain a major challenge.
- Demand for large jetliners remains strong, supported by traffic growth, replacement needs, and orders from emerging markets. Backlogs at Boeing and Airbus represent 8 years of production. Regional aircraft demand has weakened somewhat.
668 Part 6 CasesBoeings newest commercial jet aircraft, .docxevonnehoggarth79783
668 Part 6" Cases
Boeing's newest commercial jet aircraft, the wide-body
787 jet, is a bold bet on the future of both airline travel
and plane making. Designed to fly long-haul point-to-
point routes, the 250-seat 787 is made largely of com-
posite materials, such as carbon fibers, rather than
traditional materials such as aluminum. Some 80 per-
cent of the 787 by volume is composite materials, mak-
ing the plane 20 percent lighter than a traditional
aircraft of the same size, which translates into a big sav-
ing in jet fuel consumption and costs. The 787 is also
packed full of other design innovations, including larger
windows, greater headroom, and state-of-the-art elec-
tronics on the flight deck and in the passenger
compartment.
To reduce the risks associated with this technological
gamble, Boeing decided to outsource an unprecedented
70 percent of the content of the 787 to other manufac-
turers, most of them based in other nations. In contrast,
50 percent of the Boeing 777 was outsourced, 30 percent
of the 767, and only 5 percent of the 707. The idea was
that in return for a share of the work, partners would
contribute to the estimated $8 billion in development
costs for the 787. In addition, by outsourcing, Boeing
believed it could tap into the expertise of the most effi-
cient producers, wherever in the world they might be
located, thereby driving down the costs of making the
plane. Furthermore, Boeing believed that outsourcing
some work to foreign countries would help it to gamer
sales in those countries. Boeing's role in the entire
process was to design the plane, market and sell it, and
undertake final assembly in its plant in Everett,
Washington. Boeing also believed that by outsourcing
the design of so many components, it could cut down
the time to develop this aircraft to four years from the
six that is normal in the industry.
Some 17 partners in 10 countries were selected to pro-
duce major parts of the aircraft. The rear fuselage was to
be made byVought Aircraft Industries in South Carolina;
Alenia Aeronautical of Italy was to make the middle fu-
selage sections and horizontal tailpieces. Three Japanese
companies, Fuji, Kawasaki, and Mitsubishi, were to pro-
duce the wings. The nose section was to be made by
Toronto-based Onex Corporation. All of these bulky
pieces were to be shipped to Everett for final assembly
aboard a fleet of three modified Boeing 747 freighters
called Dreamlifters.
Until late 2007, the strategy seemed to be working re-
markably well. Boeing had booked orders for over
770 aircraft, worth more than $100 billion, making the
787 the most successful aircraft launch in the history of
commercial aviation, But behind the scenes, cracks were
appearing in Boeing's globally dispersed supply chain. In
mid-2007, Boeing admitted the 787 might be a few
months late due to problems with the supply of special
fasteners for the fuselage. As it turned out, the problems
were much more serious. Byearly 2008 Boeing was adm.
The document discusses the annual Top 100 report from PwC that analyzes the 2013 financial performance of major aerospace companies. It finds that the industry has experienced steady revenue growth averaging 5.6% per year since 2005, showing the ongoing strength of the civil aviation market. Boeing maintained its top position with record revenue and profit in 2013, while Airbus also saw strong growth. Overall, the top 20 companies accounted for over 75% of the industry's revenue and profits. The outlook remains positive, though economic uncertainties could pose challenges in the coming years.
Similar to Skies Clearing for Commercial Aircraft? Boeing Says Yes. (17)
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Skies Clearing for Commercial Aircraft? Boeing Says Yes.
1. Skies Clearing for Commercial Aircraft? Boeing Says Yes. - Seeking Alpha Page 1 of 4
Skies Clearing for Commercial Aircraft?
Boeing Says Yes.
June 12, 2012
by: Morningstar
| about: BA
by Neal Dihora, CFA
Air travel demand-- as measured by revenue passenger kilometers (RPK)-- has been resistant to negative events,
including financial crises, wars, and health outbreaks. It has grown at nearly 6% annually over the past 40 years, rising
to nearly 5 trillion RPK in 2010 from 0.5 trillion RPK in 1970. For the next 20 years, Boeing (BA) anticipates air traffic to
increase 5% compounded annually, resulting in demand for 33,500 new aircraft worth more than $4 trillion. Competitor
Airbus sees somewhat less robust demand for the next 20 years, with compound annual traffic growth of 4.8%. That
leads to new aircraft requirements totaling nearly 27,000 units, although this excludes regional jets. Both operators see
the rising middle class and increases in global trade as long-term drivers for new aircraft.
Boeing's mission for its commercial aircraft segment is to convert its immense and growing backlog into revenue and
cash flows. Boeing's backlog of 3,988 unfilled aircraft as of April 30 is measured in years of production, not months. The
company believes it made a mistake by lowering build rates during the 2008-09 recession, and it is unlikely to repeat
such a move should we enter another recession over the near term. The machinist contract signed in 2011 will help
execute plans to increase production by nearly 30% over the next three years from early 2012. The company is
currently monitoring nearly 1,200 suppliers on a daily or weekly basis. Of the 2,800 employees in Boeing involved with
supply chain monitoring, nearly 600 are focused on managing rate increase readiness at suppliers.
The 787 backlog stands at more than 20 years of production at the current build rate of 3.5 per month. The 787 has
used and will continue to use significant amounts of cash through 2013, when it reaches its planned production rate of
10 per month. Still, the company continues to move up the manufacturing learning curve and experiences lower costs
per plane with each completion. These positive learning curve effects will take some time to improve the profitability
profile of the 787, as the company continues to incorporate changes to planes that were manufactured before the
completion of all the required testing.
Boeing has suggested that 787 deliveries will range between 35 and 42 for 2012 (combined 747 and 787 deliveries are
expected to be 70-85, and management suggested an even split between the two). With a list price of $193.5 million per
plane and around 40 aircraft, the 787 could deliver $7.8 billion in revenue for 2012 and help drive total 2012 aircraft
segment sales of $48.5 billion (at the midpoint) from $36 billion in 2011. Management has sounded bullish about
meeting the 787 delivery targets for 2012, even though only 8 planes have been delivered through April 30.
Management is even more confident about reaching the planned production rate increases for 2012 and 2013. The
folks on the production line think the real inflection point for deliveries will occur in July and should drive a strong back
half of the year.
Improving Aircraft Products for Tomorrow's Marketplace
Boeing is using the strong revenue growth resulting from the higher production and deliveries over the coming years to
enhance its product lineup for the next decade. The 737 MAX, a re-engined version of the popular 737, was launched in
August 2011 with 1,000 commitments, and 451 of those have now converted to official orders. Boeing saw a fast start
from competitor Airbus with its re-engined A320neo product during early 2011 before the launch of 737 MAX. (The
A320neo had a backlog of 1,256 aircraft at year-end 2011, compared with 1,000 commitments for 737 MAX.) However,
Boeing fully expects to win orders from traditional Airbus customers in 2012 as it talks to them about the improved fuel
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2. Skies Clearing for Commercial Aircraft? Boeing Says Yes. - Seeking Alpha Page 2 of 4
economics with MAX.
Boeing and Airbus use different measurements for fuel consumption and reduction calculations that make comparisons
opaque. Boeing says the 737 MAX is 19% more fuel efficient than its original 737 NG, which was launched in the late
1990s. However, the MAX is only 13% more fuel efficient than the most recent 737 NG, which has been periodically
updated to save fuel during the past decade. The A320neo boasts fuel savings of 15% versus the current model,
making it appear to be outperforming the MAX.
One can see that the conclusions are difficult to make with certainty. One thing for certain is that every 1% difference, or
even a smaller increment, is a big deal for airline operators. The industry's high-water mark for net margin has been
2.9% over the past decade, and we estimate that fuel represents 25%-30% of operating costs. With translucent fuel
savings comparisons, Boeing and Airbus will use marketing prowess and relationship management skills, along with
pricing, to close orders. We think that over the next several years, Boeing's 737 MAX will close the gap with respect to
orders against the earlier-launched A320ne.
Furthermore, Boeing is in a position to widen the gap in the twin aisle market, where it already dominates (Boeing's twin
aisle backlog was 1,357 while Airbus' was 1,059 as of April 30). Airbus continues to struggle with the A350 platform,
and while Emirates is a happy A380 customer, the airplane has experienced issues before and after launch. For
Boeing, the key is to offer customers with lower fuel consumption aircraft that meet mission needs. With that in mind,
the company is slightly increasing the size of the 787-8 (currently being delivered), and the 787-9 will enter into service
in 2014. These two aircraft will challenge Airbus' A330 and A350-800 models.
Boeing also sees the potential to make life a bit more difficult for Airbus by further extending the 787 and challenging
the A350-900. We believe this is a solid offensive strategy, especially given the strength in revenue expected over the
next several years. We only worry that losses in twin aisle could force Airbus into a competitive corner, leading it to
become more aggressive about taking share in the single aisle market by using pricing. That outcome would be bad for
both players. For now, we believe Boeing is voicing the options it has in the twin aisle market without committing to
them, thus sending Airbus the message without forcing it into a corner.
Boeing said it has not experienced any unusually large cancellations to date. However, we continue to believe that
orders for the industry are likely to decline in 2012 when compared with 2011. The outlook for 2013 probably depends
on the world economy, and we believe weakness is already seeping in. As investors consider a weaker world economy
for 2013, they are likely to offer a lower valuation multiple for Boeing's shares. Boeing Capital could be asked to assist
in aircraft financing should customers have problems with credit availability. Still, the company should deliver larger
cash flows over the coming years that will allow it to increase dividends or repurchase shares while paying down debt.
Defense Positioned to Maintain Margins Even as Sales Stagnate
The defense segment historically brought in around half of Boeing's total revenue, but will begin to contribute less
starting in 2012. Over the years, this segment has delivered solid performance, with operating margins around 10%. By
consolidating facilities and cutting the executive-level workforce over the past three years, the division is prepared to
post similar profitability in the new environment of limited growth in defense spending.
On January 5th, President Obama announced the results of the first strategic review undertaken by Secretary of
Defense Leon Panetta. The president was adamant that the base defense budget will continue to grow-- albeit at a
slower pace than in the past-- and still deliver the mandated savings under the Budget Control Act of 2011. Panetta
outlined a slew of missions that the military should be able to complete-- even in the face of slowing budget growth-- the
primary ones being: counterterrorism and irregular warfare and operating effectively in cyberspace and space;
projecting power despite anti-access or area denial challenges; maintaining a safe, secure, and effective nuclear
deterrent; and conducting stability and counterinsurgency operations.
We believe the updated missions will require higher spending on intelligence, surveillance, and reconnaissance,
unmanned aerial vehicles or drones, cyber, satellites, missile defense, and a new stealth bomber. We believe Boeing's
product offering is well suited for the new vision at the Pentagon, as the firm has many of the needed capabilities. For
example, Boeing put the first global positioning satellite into space and is the prime contractor for the Ground-Based
Midcourse Defense missile system.
The Department of Defense's fiscal 2013 budget request of $525 billion in the base budget and $88.4 billion for
overseas contingency operations was a decline of around $32 billion from fiscal 2012. The Budget Control Act of 2011
paved the way for the Defense Department to remove $487 billion over 10 years from defense spending, including $259
billion in the first five years. Still, Boeing estimates that its top 15 programs will see a 4.2% reduction versus the 13%
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3. Skies Clearing for Commercial Aircraft? Boeing Says Yes. - Seeking Alpha Page 3 of 4
reduction for all Defense Department programs for fiscal 2013. We believe this is due to the reshaping of its portfolio in
earlier years.
Productivity and cost-effectiveness are the measures under which defense will continue to operate. As the spending
environment becomes difficult, the company with the best products and the lowest total costs will win more business.
Boeing's defense backlog ended 2011 at $62.2 billion, a slight decline from $65.3 billion at year-end 2010. It bounced
back strongly in the first quarter of 2012, to $74.5 billion.
The backlog is nicely diversified, with 50% related to production, 28% for development, and 22% for support services.
Importantly, international represents nearly 35% of the backlog despite contributing only 24% of 2011 sales. Boeing,
and the industry as a whole, expects strong growth internationally as Asia and the Middle East increase defense
spending. We believe the defense segment will continue to be a stable cash flow generator even in the difficult
environment. Over the years, the segment has provided funds during weak commercial aircraft environments, and we
see no change over the near term.
What Lies Ahead
Boeing cash flows are ready for uplift, driven by commercial aircraft delivery growth. The order book is extremely strong,
and production is likely to hold even in a slower economic growth environment. Still, we believe orders for 2011
probably represent a near-term peak for the industry and could place a lid on Boeing's share price.
(click to enlarge)
Our $73 fair value estimate incorporates average annual sales growth of nearly 5% over the next 10 years along with
average operating margins of 9%. We include the current production schedule escalation, although our 787 production
is slower than management's guidance. We continue to think the supply chain could be challenged to nearly double the
production rate from 5 aircraft per month at year-end 2012 to 10 by year-end 2013. Our fair value estimate represents a
price/2012 earnings multiple of 16.5 times, which we think is appropriate given the strong backlog and near-term
growth. The company forecasts $78 billion-$80 billion in sales and $4.15-$4.35 in earnings per share for 2012, in line
with our estimates.
Disclosure: Morningstar licenses its indexes to certain ETF and ETN providers, including BlackRock, Invesco, Merrill
Lynch, Northern Trust, and Scottrade for use in exchange-traded funds and notes. These ETFs and ETNs are not
sponsored, issued, or sold by Morningstar. Morningstar does not make any representation regarding the advisability of
investing in ETFs or ETNs that are based on Morningstar indexes.
http://seekingalpha.com/article/652461-skies-clearing-for-commercial-aircraft-boeing-says... 6/12/2012