Will The Boeing Company (NYSE:BA) Survive?

Posted by Ryan Mandell October 4, 2013 0 Comment 1063 views

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.

Investor watch

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 threats

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.

About Ryan Mandell

Ryan Mandell is our senior staff writer covering the White House for Political Report, Ryan also coordinates with the main newsroom news items and contributing write-ups on cultural, social and political activities. Ryan holds an undergraduate degree in journalism, a Doctorate in international relations and a Master Degree in mass communications with an emphasis in print journalism. Ryan also covered the International Society of Social Defense congress in Spain in 2007 and taken part in the Global Forum on economic policies

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