Tag Archive: Boeing

  1. Boeing To Take Three Charges Totaling $2.05 Billion as Part of Its Second-Quarter Earnings

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    Boeing

    Boeing

    Boeing will take three charges encompassing $393 million for the company’s KC-46 re-fueling tankers, $847 million for the 787 Dreamliners, and $814 million for the 747 program.

    The charges Boeing will take add up to $2.05 billion total, as part of the company’s second-quarter earnings.

    The 747 charge comes as a result of an adjustment in future delivery assumptions, the Dreamliners charge is due to the company’s re-classifying two program planes as R&D planes, and the re-fueling tankers is the fourth charge Boeing has taken on the program.

  2. Boeing Cutting 4,000 Jobs In an Effort to Reduce Costs as It Competes With Airbus

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    Wiki Commons

    Wiki Commons

    In an effort to reduce costs, Boeing is cutting 4,000 jobs through normal attrition, voluntary buyouts and leaving open positions unfilled.

    Citing softer demand for aircraft, in addition to Boeing’s need to keep up with rival Airbus, the jobs cuts will encompass approximately 2% of its worldwide staff.

    Company spokesman Doug Adler said, “We’ll only use involuntary layoffs as a last resort.”

    In total, Boeing has wiped out 13,000 jobs since the end of 2012, and also plans to cut commercial jet deliveries by about 20 in 2016.

    The 737 MAX continues to be the best selling jet Boeing currently has in its lineup.

  3. Boeing Forecasts a $730 Billion Aircraft Market in Middle East Over the Next 20 Years

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    737-MAX8 Artwork (Boeing)

    737-MAX8 Artwork (Boeing)

    Boeing is predicting that the Middle East will require 3,180 new aircraft over the next two decades, which translates into roughly $730 billion.

    The U.S. aircraft manufacturer sees 70% of that demand driven by “rapid fleet expansion in the region.”

    Boeing’s forecast predicts that that the largest share of future demand will be in single-aisle aircraft, such as its 737 MAX, estimating that Middle East carriers will need approximately 1,140 of those aircraft.

    In its announcement, Boeing expresses, “These new airplanes will continue to stimulate growth for low-cost carriers and replace older, less-efficient airplanes.”

    “Traffic growth in the Middle East continues to grow at a healthy rate and is expected to grow 6.2 percent annually during the next 20 years,” said Randy Tinseth, Vice President, Marketing, Boeing Commercial Airplanes.

    “About 80 percent of the world’s population lives within an eight-hour flight of the Arabian Gulf. This geographic position, coupled with diverse business strategies and investment in infrastructure is allowing carriers in the Middle East to aggregate traffic at their hubs and offer one-stop service between many city pairs that would not otherwise enjoy such direct itineraries.”

  4. Boeing Lowers Guidance After Cruising Past Earnings Expectations For Q2

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    Wikimedia Commons

    Wikimedia Commons

    Boeing lowered its guidance for EPS to a range of $7.70 – $7.90, from $8.20 – $8.40 for the rest of the year after crushing second-quarter earnings expectations.

    The aerospace giant reported an 11% increase in revenues to $24.5 billion due to “record commercial deliveries” before the marked opened today.

    CEO Dennis Muilenburg said in the earnings statement: “Record commercial airplane deliveries to customers worldwide drove solid revenue growth, and the strength of our overall portfolio and diligent focus produced significant operating cash flow during the quarter.”

    “Strong operating performance across our commercial and defense production programs partially offset the tanker charge and enabled us to maintain our commitments to return cash to our shareholders and invest in innovation and our people.”