) announced it has received a contract from
The Boeing Company
) to produce titanium detail components and subassemblies for the
Boeing 787 Dreamliner. Under the terms of the contract,
production on the titanium assemblies will continue at the
Ducommun AeroStructures facility in Coxsackie, New York.
BOEING CO (BA): Free Stock Analysis Report
DUCOMMUN INC DE (DCO): Free Stock Analysis
GENL DYNAMICS (GD): Free Stock Analysis
LOCKHEED MARTIN (LMT): Free Stock Analysis
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The 787 Dreamliner is a mid-sized, twin-engine jet airliner with
various configurations that can carry up to 290 passengers on
routes of 8,000 to 8,500 nautical miles. The plane also uses 20%
less fuel than similarly sized airplanes.
Ducommun provides engineering and manufacturing services to the
aerospace, defense, and other industries through a wide spectrum
of electronic and structural applications. The company is an
established supplier of critical components and assemblies for
commercial aircraft and military and space vehicles as well as
for the energy market, medical field, and industrial automation.
It operates through two primary business units - Ducommun
AeroStructures and Ducommun LaBarge Technologies.
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 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 #3 Rank, which translates into a
short-term Hold rating. Considering the fundamentals, we are
maintaining our Neutral recommendation on the stock. This is in
sync with other aerospace and defense behemoths,
General Dynamics Corporation
Lockheed Martin Corporation