The Boeing Company
) signed a teaming agreement with Sikorsky Aircraft Corporation,
a subsidiary of
United Technologies Corporation
). The agreement stipulates submission of a joint proposal in
response to the U.S. Army Aviation Applied Technology Directorate
solicitation for the Army's Joint Multi-Role (JMR) Technology
Demonstrator (TD) Phase 1 program.
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The JMR TD supports the Department of Defense's Future Vertical
Lift program to deliver the next generation of vertical lift
aircraft with greater performance, reliability and affordability.
Boeing enjoys a unique position as the largest aircraft
manufacturer in the world in terms of revenues, orders and
deliveries, and is also one of the largest aerospace and defense
contractors. Besides, its revenues are spread across more than 90
countries around the globe.
Boeing's strong balance sheet and cash flows provide financial
flexibility in matters of incremental dividend, share repurchases
and earnings accretive acquisitions. The company had a strong
balance sheet with a stable long-term debt-to-capitalization of
62.1% at the end of the first nine months of 2012. Boeing's
diversified revenue stream provides stable earnings leading to
strong cash flows. The company generated approximately $3.3
billion of cash flows from operating activities in the first nine
months of 2012. The company ended the first nine months of 2012
with cash and cash equivalents of $6.6 billion and short-term
investments of $4.6 billion. Long-term debt decreased to $9.0
billion at the end of the first nine months of 2012 from $10.0
billion at the end of fiscal 2011.
Boeing taking into account its performance in the first nine
months of 2012, raised its full year 2012 earnings per share
guidance to a range of $4.80-$4.95 from its earlier range of
$4.40-$4.60. The company also raised its revenue guidance for
2012 to the range of $80.5 billion to $82 billion versus the
earlier range of $79.5 billion to $81.5 billion.
The company expects its Commercial Airplanes' 2012 deliveries to
come between 585 and 600 airplanes, which are already sold out.
This includes an expected 70 to 85 787 and 747-8 deliveries.
Commercial Airplanes' 2012 revenue is expected to be between
$47.5 billion and $49.5 billion with operating margin around
In the defense space, the company expects defense revenue for
2012 to be between $32.5 billion and $33.0 billion versus its
earlier range of $31.5 billion and $32.0 billion with operating
margin greater than 9%. Boeing Capital Corporation expects that
its aircraft finance portfolio will continue to decline in 2012.
Boeing currently retains a Zacks Rank #3, which translates into a
short-term Hold rating. This is in sync with other aerospace and
General Dynamics Corporation
Lockheed Martin Corporation