Will The Boeing Company (NYSE:BA) Survive?
The Boeing Company (NYSE:BA) announced a 14% rise in its deliveries of commercial aircraft in the Q3, in comparison to the same quarter a year ago. The one hurdle to handing over a record-number of aircraft in this year could be the partial government shutdown. The company announced that it had delivered the 1st 787 Dreamliner to Brunei Airlines just 2 days ago. However, it has also mentioned that there might be a delay in other deliveries if the U.S government shutdown does not ease off.
Investors keep a very keen watch on aircraft deliveries and the companies get a major part of the revenue only when the ownership of the aircraft is formally transferred to the concerned airline. In the first 9 months of this year, The Boeing Company (NYSE:BA) delivered 476 aircraft which was one less than the 2011 delivery. The full-year target is 635-645 aircraft.
The one thing that threatens this target is that there is a paucity of FAA inspectors. Apart from this, the Exim Bank of U.S closure is another threat point. This bank provides finance-guarantees for some of The Boeing Company (NYSE:BA)’s customers. As per a certain aircraft financer, almost 10 Exim U.S bank-backed jets were slated to be delivered between October and November.
The company has been boosting the production of the 787, 777 and the 737 jets and 3/4th of these deliveries of the 170 commercial-jets will be in this quarter, in comparison with the 149 deliveries that took place a year earlier.
Thursday’s trading session
In Thursday’s trading, The Boeing Company (NYSE:BA) dropped by 2.21%. The shares opened at a price of $117.35, climbed to an intraday high of $117.49 and dipped to a close of $115.24. Approximately 4.46 million shares were traded on Thursday and the average volume of shares traded over 30 days was 4.00 million.