The Boeing Company (BA) has completed the contractual delivery of the first 787 Dreamliner series aircraft to Japanese carrier, All Nippon Airways. The Boeing 787 Dreamliner is a long-range, mid-size, wide-body, twin-engine jet airliner.
Boeing’s first delivery of Dreamliner aircraft is more than three years behind the original schedule. The delays have forced Boeing to pay huge compensations to customers, adding to the project's cost. Despite delays to the program, Boeing has secured orders for 821 Dreamliner aircraft from 56 customers.
Going forward, Boeing plans to boost the monthly output of the Dreamliner from the current 3 planes to 10 by the end of 2013. The company's efforts to boost production comes as rival Airbus SAS, a unit of European Aeronautic Defence & Space Co. or EADS, is starting production of its competing A350 model, which it plans to start delivering in 2013.
Boeing launched its ambitious Dreamliner program in April 2004, with a schedule to deliver the first airplane in May 2008. The aircraft's maiden test flight, originally planned for September 2007, took place on December 15, 2009. The 787 Program of Boeing is the first passenger jetliner manufactured mostly of lightweight and environment-friendly composite material — a welcome change from traditional materials like aluminum and titanium.
The new airplane is being preferred by airline companies owing to better fuel efficiency. It consumes 20% less fuel than other competing airplanes. The 787 Dreamliner can be configured in two versions — 787-8 priced at $185.2 million, which carries 210–250 passengers, and 787-9 priced at $218.1 million that will fly around 300 people.
Boeing has a unique position as the largest aircraft manufacturer in the world in terms of revenues, orders and deliveries. Besides, it is one of the largest aerospace and defense contractors in the world. Also, its revenues are spread across more than 90 countries around the globe.
Strong performance from the commercial airplanes business and stable core operations allowed Boeing to register a solid second quarter 2011. The company surpassed both the year-ago results and the Zacks Consensus Estimates. Boeing has raised its earnings per share guidance range for fiscal 2011 to $3.90 – $4.10 from the earlier band of $3.80 – $4.00, encouraged by the solid performance in the most recent quarter.
The Zacks Consensus Estimates for third quarter 2011, fiscal year 2011 and fiscal year 2012 currently stand at $1.07 per share, $4.24 per share and $5.27 per share, respectively.
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 like General Dynamics Corporation (GD) and Lockheed Martin Corporation (LMT).
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