The aerospace giant
The Boeing Company
) reported strong delivery numbers for the second quarter as well
as the first half of 2014, beating its archrival, Airbus. This
commercial aerospace behemoth is indeed flying high in spite of the
many technical glitches weighing upon its popular Dreamliner model.
Boeing's share price closed at $128.51 on Jul 3, reflecting a gain
of 22.28% over the last twelve-month period.
During the first half of the year, Boeing delivered 342 commercial
jetliners, 11.8% higher than the year-ago level. On the other hand,
Airbus delivered 303 commercial planes so far this year.
In its second quarter of 2014, Boeing delivered 181 commercial
airplanes, approximately 7.1% higher than the year-ago number.
During the quarter, the Next Generation 737 model proved yet again
its unfailing popularity, delivering 124 airplanes, followed by its
787 model with 30 deliveries. In the year-earlier period, the
company had delivered 116 units of the 737 and 16 units of the 787
model. Boeing also delivered 24 777s during the second quarter
2014, while delivering 23 units in the year-ago period.
Meanwhile, Boeing's deliveries in the defense and space business
numbered 47 in the second quarter 2014 compared with 31 in the
comparable period last year. The breakdown includes 15 Chinook
helicopters, 12 F/A-18E/F and EA-18G fighter jets and 9 Apache
helicopters, as well as 4 units of F-15, 2 C-17, 2 P-8, 2
Satellites (Government & Commercial) and 1 AEW&C.
In the Commercial Airplanes business, its 787 Dreamliner despite
setbacks and technical snags remains a popular choice for major
airlines, roughly doubling its deliveries in the second quarter of
2014. Commercial Airplanes' 2014 deliveries are expected to be
between 715 and 725 airplanes. This includes approximately 110
units of the 787.
The fourth generation of the 737 family - the 737 Max - is also a
premier aircraft from Boeing's stable and sees brisk demand in the
single-aisle market for its fuel efficiency and low carbon dioxide
The company seems to have retained its title of the world's largest
airplane manufacturer given its impressive track record in both
innovation and fuel efficiency. We expect Boeing to notch up record
jet deliveries in the future driven by growing passenger traffic in
the Asia-Pacific region.
Boeing currently has a Zacks Rank #2 (Buy). Other well-placed
players in the aerospace and defense industry include
Huntington Ingalls Industries, Inc.
General Dynamics Corp.
), all carrying a rank similar to Boeing.
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