International commercial airplane producer,
The Boeing Company
) announced its deliveries across its commercial and defense
operations for the first quarter of 2013. The company maintained
its quarter delivery level on an annualized basis with deliveries
of 137 airplanes.
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The 737 model continues to be the pillar of Boeing's strength in
the commercial airplane sector with deliveries of 102 airplanes,
followed by its 777 model with 24 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 99 units of the 737 and 20 units of
the 777 model.
Boeing's deliveries in the defense and space business were 45 in
the first quarter of 2013. Of this 15 were Apache helicopters, 12
were F/A-18E/F and EA-18G fighter jets and 9 were Chinook
Moreover, Boeing won net orders for 209 planes in the Mar 2013
quarter, after considering the cancellations of 11 jets.
Boeing has a unique position as the largest aircraft manufacturer
in the world in terms of revenues, orders and deliveries.
Besides, it is one of the largest aerospace and defense
contractors in the world. Also, its revenues are spread across
more than 90 countries around the globe.
In the fourth quarter of 2012, Boeing delivered
better-than-expected results based on higher deliveries of
commercial airplanes. The company's strong numbers came from
higher commercial plane deliveries which more than offset a tepid
quarter for defense.
Boeing's presence in the commercial airplanes market insulates
the company from U.S. defense budget shock waves that are
currently affecting all defense players across the board. Boeing
had a strong commercial airplanes backlog. At the end of 2012,
the company's backlog was more than 4,400 airplanes valued at a
record $319 billion.
Boeing currently retains a Zacks Rank #3 (Hold). However, there
are other companies in the sector that appear more promising and
worth accumulating now. These are
Wesco Aircraft Holdings, Inc.
Flir Systems, Inc.
Alliant Techsystems Inc.
). Wesco Aircraft and Alliant Techsystems carry a Zacks Rank #2
(Buy) and Flir Systems retains a Zacks Rank #1 (Strong Buy).