International commercial aircraft manufacturer,
The Boeing Company
) announced its second quarter 2013 deliveries across commercial
and defense operations. The first half numbers were ahead of its
European rival, Airbus.
During the first half of the year, Boeing delivered 306
jetliners, 6.6% higher than the year-ago level. On the other
hand, Airbus delivered 295 commercial planes so far this year. It
delivered 233 of its smaller A320 family of planes compared to
Boeing's delivery of 218 of its 737 Next Generations.
Boeing's second quarter delivery level advanced 12.7% on an
annualized basis with deliveries of 169 airplanes marking a
15-year high. The production level was boosted in order to keep
pace with the increasing demand for new aircraft.
During the second quarter, the 737 model continued to be the
pillar of Boeing's strength in the commercial airplane sector
with deliveries of 116 airplanes, followed by its 777 model with
23 deliveries. Both these models continue to perform better than
competing models owing to their fuel efficiency and lower
operating costs. In the year-earlier period, the company
delivered 109 units of the 737 and 22 units of the 777 model. It
also delivered 16 787s and an additional Dreamliner under a
short-term financing agreement with Air India Ltd.
Boeing's deliveries in the defense and space business numbered 31
in the second quarter of 2013 compared with 43 in the first
quarter of 2013 and 36 in the second quarter last year. Of this,
12 were F/A-18E/F and EA-18G fighter jets, 8 were Chinook
helicopters and 5 were Apache helicopters.
During the quarter, the company hiked its 737 production level
from 35 to 38 jets per month with plans to increase the rate to
42 a month in 2014. The first quarter saw Boeing delivering just
one 787 with a promise to give away at least 60 such aircraft by
the end of the year. The lifting of the ban on the 787 in late
April by the U.S. Federal Aviation Administration removed a major
Meanwhile, the Paris Show has brought in big orders for both the
aerospace heavyweights Boeing and Airbus. At the end of the 50th
Paris Air Show, held at Le Bourget on alternate years, Airbus
came out on the top.
Europe's Airbus notched up approximately $70 billion in sales at
the show with respect to deals for 466 planes. Boeing was not too
far behind with agreements inked for 442 planes worth $66
Though both the companies announced billions of dollars worth of
orders for their single-aisle jets, sales of their bigger planes
remained the center of attraction. Boeing officially launched its
new 787-10 wide-body aircraft, clinching 102 orders. Like the
A350, this airplane will make broad use of lightweight carbon
United Continental Holdings, Inc.
) became one of the launch customers for Boeing's new 787-10
Dreamliner model. The company also won orders for six of its
wide-body 777s with twin engines.
The Paris Air Show indicated that the ongoing battle for
supremacy in the global commercial aircraft market is heating up.
Swelling orders and rising production schedule hint that
aerospace manufacturers are in for a multi-year run of steady
revenue and profit growth.
Boeing presently retains a short-term Zacks Rank #2 (Buy). There
are other companies in the sector that also appear promising and
worth accumulating now. These are Zacks Ranked #1 (Strong Buy)
Erickson Air-Crane Inc.
) and Zacks Ranked #2 (Buy)
Northrop Grumman Corp.
BOEING CO (BA): Free Stock Analysis Report
ERICKSON AIR-CR (EAC): Free Stock Analysis
NORTHROP GRUMMN (NOC): Free Stock Analysis
UNITED CONT HLD (UAL): Free Stock Analysis
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