Boeing gets an order from Swiss – BA, LHA & LMT
Northern, WI 03/15/2013 (gdpinsider) – Shares of The Boeing Company (NYSE:BA) have been experiencing a decline on continued problems with its Dreamliner 787 fleet. News has come in that Swiss International Air Lines AG has agreed to purchase 6 Boeing 777s from the company, in a deal valued at around $1.9 billion. Swiss International Air Lines AG is a part of the Deutsche Lufthansa AG (ETR:LHA) air group.
The Boeing Company is a Chicago, Illinois based aerospace company, operating in five divisions: commercial aircraft, military aircraft, space systems, global services and Boeing Capital Corporation. The company has a market capitalization of around $64 billion. The stock of The Boeing Company is trading near its 52 week high of around $85 per share.
The problems that The Boeing Company has been experienced with its newly launched 787 fleet may be providing some benefit to competitor Lockheed Martin Corporation (NYSE:LMT). The company’s stock is trading at around $93 per share, nearing its 52 week high of around $97 per share. Options traders appear to be bearish on the company’s stock as the company tests solutions to the battery problem that has kept the 787 plane grounded.
Lockheed Martin Corporation is a Bethesda, Maryland based aerospace and defense systems company with a market capitalization of around $30 billion. The company has a return of equity that is around 183%, well above that of The Boeing Company at around 60%.
Northrop Grumman Corporation (NYSE:NOC) has also been a beneficiary of the problems impacting The Boeing Company with its 787s. The company, which has a market capitalization of around $16 billion and has been trading up, is closing at around $68 per share. The closing price of Northrop Grumman Corporation is moving toward its 52 week high of around $71 per share.
Based in Falls Church, Virginia, Northrop Grumman Corporation, the company specializes in aerospace systems. The company divides itself into four segments, which are aerospace systems, electronic systems, information systems, and technical services. The company’s return on equity is around 21%, in its last reporting quarter of 2012, but looks to gain on The Boeing Company and Lockheed Martin Corporation.
This news should give the beleaguered company a bit of a boost to The Boeing Company’s bottom line. Additional sales of the company’s more reliable airliners to its customers will increase confidence in the company as it seeks to address the problems with the 787 Dreamliner. Shares of The BoeingCompany (NYSE:BA) were down by 0.15% to close at $84.62.
Shares of The Boeing Company (NYSE:BA) were up by 0.37% and currently trading at $84.93
Shares of Deutsche Lufthansa AG (ETR:LHA) were up by 0.62% and currently trading at EUR16.15
Shares of Lockheed Martin Corporation (NYSE:LMT) were up by 0.12% and currently trading at $92.65