The Boeing Company – catching up with demand

There is rarely a person that hasn’t heard of Boeing and what they do. Incorporated in the distant 1934, on the 19th of July, Boeing was registered as an aerospace company and has dominated the market ever since. The five main segments of operations for the giant are Commercial Airlines Military Aircraft, Network and Space Systems, Global services and Boeing Capital Corporation. Boeing Defense Space and Security is based on three main business sectors – BMA, NSS and GS&S. Among the other smaller segments of the company are activities such as engineering operations and technology. This is the main research division for Boeing, which provides it with technical and functional designs, as well as with test and evaluation activities and intellectual property. One of the latest acquisitions of the company was Inmedius, which was a software provider for data transmission. Boeing often invests in such companies, as a big part of its manufacturing includes coordinating hardware and software.
The Commercial Airplane operations of the company is concerned with the production, marketing and retail of jet aircraft, as well as support services, spare parts and other similar offerings for the international airline industry. Its planes are the benchmark for commercial aircraft and its family of jetliners is designed specifically for transport use for a specific number of passengers and cargo requirements both for US and non-US airlines. The main products on the market are the 747, 767, 777, and 787 models. The future offerings of the company in the face of the 787-9 and the 737 Max are still in production. In addition to these products these operations include aircraft modifications, spare parts, training, maintenance and other technical services to commercial and government customers.
The military aircraft segment is similar, yet pointed towards the research, development and manufacturing of both manned and unmanned weaponry systems for global tactical strikes. These include fighter and combat aircraft missile systems, with global reach, transport, tanker and tilt-rotor aircraft machines. In addition to that, the company also provides airborne surveillance and intelligence, as well as command and control management for airborne and anti-submarine aircraft. Among the most influential programs in the sector are the EA-18G Growler, the F/A-18E/F Hornet, the classic F-15, AH-64 Apache and the Joint direct attack munitions.
Boeing company stock is currently trading for $130.80 per share. This is a good increase since in June 2013; the prices of Boeing shares were around $98. It is an increase of 40%, which has fluctuated somewhat with the different periods. The highest threshold over the last months was $140, while the lowest on $120, which increased investors’ expectations with such a low variance in comparison to other industries.
Despite recent slowdowns in delivery, BA stock is showing promise. In April, 2014 deliveries slowed down to 56, which is 10 less than March, which has led many to believe that the company isn’t going to meet its annual forecast. However, the company remains the world’s biggest airplane manufacturer, receiving most of the cash from the jet sales sector.
If Boeing continues to deliver with such a pace for the next several months, estimations are that it will sell around 651 jets for the year, which will be below the forecast of 715. Some of the more beneficial forecasts were even for 757. The benchmark from last year is 648, which has raised concerns whether the leading company is managing to keep up its operations and whether it needs more financing to catch up with demand. However, the fact that the demand is still growing is serving as incentive for investors to allocate resources, as with enough external financing the future prospects for the company seem benevolent.


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