|Bid||0.00 x 900|
|Ask||0.00 x 1000|
|Day's range||312.51 - 326.20|
|52-week range||302.72 - 446.01|
|Beta (5Y monthly)||1.19|
|PE ratio (TTM)||48.62|
|Forward dividend & yield||8.22 (2.59%)|
|Ex-dividend date||12 Feb 2020|
|1y target est||N/A|
Boeing has successfully completed the first flight of the world's largest twin-engine jetliner - a respite from the ongoing controversy surrounding the 737 MAX. It took three attempts to get the 777X off the ground, as the first two planned tests were abandoned owing to high winds. Four hours later, it landed at the historic Boeing Field, not far from rows of 737 MAX planes left grounded after two fatal crashes triggered safety concerns.
Boeing Co successfully staged the first flight of the world's largest twin-engined jetliner on Saturday in a respite from the crisis over its smallest model, the grounded 737 MAX. The 777X, a larger version of the 777 mini-jumbo, touched down at the historic Boeing Field outside Seattle at 2 pm (2200 GMT) after a debut which began almost four hours earlier at Boeing's revamped wide-body assembly lines north of the city. "It's a proud day for us," said the chief executive of Boeing's commercial airplane unit, Stan Deal.
(Bloomberg) -- Boeing Co. is considering another cut to production of its marquee 787 Dreamliner as the aerospace giant contends with sluggish demand, people familiar with the matter said.Executives are studying whether to trim monthly output by two planes to 10 a month from a reduced pace that was announced in October, the people said. While no final decision has been made, a new production schedule for the twin-aisle jet could be announced as early as next week when the company reports earnings.Boeing is grappling with slowing sales for wide-body aircraft in a market glutted with used models. The manufacturer has struggled to persuade airlines to accelerate deliveries to fill empty production slots, said one of the people, who asked not to be identified because the discussions are private.Slowing output of the carbon-composite Dreamliner, with a list price that starts at about $250 million, would crimp a critical source of cash for Boeing as it attempts to recover from a global grounding of the 737 Max following two fatal crashes. The 787 accounted for about 40% of Boeing’s jetliner deliveries in 2019 as the company was barred most of the year from shipping the best-selling Max.“We maintain a disciplined rate-management process, taking into account a host of risks and opportunities,” Boeing spokesman Chaz Bickers said when asked about a possible output cut for the Dreamliner. “We will continue to assess the demand environment and make adjustments as appropriate in the future.”Boeing rose 1.7% to $323.05 at the close in New York. On a volatile day for the stock, Boeing fell in midday trading on the potential Dreamliner rate cut before reversing losses when Reuters reported that the Federal Aviation Administration was “pleased” with Boeing’s latest work on fixing the Max. The shares have fallen 9.8% over the last 12 months, the second-worst performance in the Dow Jones Industrial Average.Cutting Dreamliner output to 10 a month from last year’s levels would clip $324 million from cash flow, said Bloomberg Intelligence analyst George Ferguson. That’s “small vs. the $4 billion-plus the 737 will earn” when the Max grounding ends and production normalizes at a monthly rate of 57 jets, he said in a note to clients.In addition, the impact on cash flow of any new cut in Dreamliner production could take years to materialize. In October, Boeing executives cited an extended order drought from China when they said the company would slow production to 12 Dreamliners a month by late this year from its peak rate of 14.China FactorBoeing has gotten more bad news into the open under new Chief Executive Officer Dave Calhoun, who took the reins this month. The Chicago-based company has already delayed expectations for the Max’s return to midyear and is expected to report a multibillion-dollar accounting charge for compensating airlines that didn’t receive planes on order.A nascent thaw in trade tensions between the U.S. and China could weigh against reducing output of the Dreamliner, which can seat as many as 336 passengers. In a trade pact announced last week, China agreed to purchase almost $80 billion in U.S. goods including aircraft through next year.“I would expect a rate reduction sooner rather than later, with one caveat,” John Plueger, CEO of Air Lease Corp., predicted earlier this month. “If Boeing had any suspended 787 deals which get reactivated quickly, then that might modify their rate decision.”He said he had no particular knowledge of Boeing’s plans.(Updates with analyst comment in seventh paragraph.)\--With assistance from Charlotte Ryan and Brandon Kochkodin.To contact the reporters on this story: Julie Johnsson in Chicago at firstname.lastname@example.org;Siddharth Philip in London at email@example.comTo contact the editors responsible for this story: Brendan Case at firstname.lastname@example.org, ;Anthony Palazzo at email@example.com, Tony Robinson, Richard CloughFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Boeing Co. rose after U.S. aviation regulators said the company is making strides in its work to fix the 737 Max, stirring hopes that the grounded plane is closer to flying again.The Federal Aviation Administration “is pleased with Boeing’s progress in recent weeks toward achieving key milestones,” the agency said in a statement Friday. The FAA commented after its leader, Steve Dickson, spoke with U.S. airlines.The FAA’s tone marked a dramatic shift from a month ago, when the regulator chastised Dennis Muilenburg, Boeing’s chief executive officer at the time, for a lack of “quality and timeliness of data submittals” regarding the Max. Muilenburg was ousted shortly after that and was replaced this month by longtime board member Dave Calhoun.The FAA’s work to recertify the 737 Max and revise its training requirements could be completed as soon as mid-spring, said one person briefed on the discussions who wasn’t authorized to speak about it. However, nothing is certain about timing on the process that has been so frequently delayed over the past year, said the person.The date when airlines resume operations with the plane could be weeks or months later. Carriers will have to perform special maintenance routines on each of the dormant planes, revise their operating procedures and retrain their pilot groups.Boeing said earlier this week that it expects the Max to return to service in mid-2020, months later than earlier projections by the company. The single-aisle jet has been grounded worldwide since March 13, three days after the second of two deadly crashes linked to a flight-control system.Boeing rose 1.7% to close at $323.05 in Friday trading, reversing losses sparked by a Bloomberg News report that the company is considering another cut to production of its 787 Dreamliner.Dickson talked Friday with officials at the three U.S. airlines that fly the 737 Max, United Continental Holdings Inc., American Airlines Group Inc. and Southwest Airlines Co.The FAA leader said Boeing’s latest estimate is conservative, according to people familiar with the matter. Without providing a specific time frame, the FAA chief said the plane could be re-certified before midyear, said the people, who asked not to be named because the conversation was private.In its statement, FAA repeated its months-long stance that it has no deadline for when it will approve the plane to carry passengers.There is no guarantee that additional delays won’t push back the schedule, but Boeing has completed several major steps in recent weeks that are giving regulators greater confidence, said the person.An audit of the extensive software changes being made on the plane’s flight-control computer was was recently completed, said the person. The audit had taken months longer than anticipated.One of the key items that remains to be done is determining what level of flight training will be needed for the plane, both for pilots transitioning to the plane from earlier 737 models as well as ones who are new to the family of planes.Boeing earlier this month said it would support a requirement for simulator training for pilots transitioning from other 737 models to the Max, reversing its long-standing opposition to such training.Reuters reported earlier on the FAA’s communications with airlines.(Updates with details of schedule in fourth paragraph)\--With assistance from Mary Schlangenstein.To contact the reporter on this story: Alan Levin in Washington at firstname.lastname@example.orgTo contact the editors responsible for this story: Jon Morgan at email@example.com, Steve GeimannFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Kramer Capital Research CIO Hilary Kramer joins The Final Round to discuss her top stock picks, and why Boeing and General Electric are buys in this market.
Federal Aviation Administrator Steve Dickson called senior U.S. airline officials on Friday and told them the agency could approve the grounded Boeing 737 MAX's return to service before mid-year - a faster time frame than the planemaker suggested this week, people briefed on the calls said. Dickson's calls came as the FAA issued a statement on Friday voicing progress on the 737 MAX, in a shifting tone that helped push the planemaker's shares higher even as concerns grew that it may cut production of another aircraft, the 787 Dreamliner. "While the FAA continues to follow a thorough, deliberate process, the agency is pleased with Boeing’s progress in recent weeks towards achieving key milestones," the agency said in a statement.
Earlier this month, U.S. airplane leasing firm Air Lease Corp Chief Executive Officer John Plueger said Boeing could be forced to cut production of its 787 Dreamliners to 10 aircraft per month, amid a drought of orders from China. Boeing shares were down 0.3% in mid-day trading Friday. Boeing is also reviewing other global economic factors in deciding whether to again cut production including trade issues and travel demand, the sources said.
(Bloomberg) -- Boeing Co. is marketing its new $10 billion loan deal with pricing in line with the company’s existing credit lines, according to people familiar with the matter.The loan, which would help the U.S. planemaker ease its growing financial strain, will have a margin of 100 basis points over the London interbank offered rate, the people said. Boeing will pay a 9 basis point ticking fee while it doesn’t draw the money, the people added. The debt will mature in two years and be structured as a delayed-draw term loan, which allows Boeing to access the funds at a later date, Bloomberg previously reported. Citigroup Inc. is leading the deal.This pricing is in line with the planemaker’s most recent $9.5b revolving credit facilities signed in October. At Boeing’s current rating of A3 by Moody’s Investors Service and A- at S&P Global Ratings, the revolver costs 100 basis points over Libor if the company taps the credit line or requires a nine basis point facility fee if Boeing doesn’t. Both Moody’s and S&P are considering downgrading the company, which would knock it into the lowest tier of investment-grade rankings and raise its borrowing costs.Representatives from Citi and Boeing declined to comment.The company is marketing the loan as it weighs another cut to production of its marquee 787 Dreamliner amid sluggish demand for its twin-aisle jet. The new loan is expected to wrap up this week, said the people. The lender group is expected to be smaller than that on its revolving facilities, they added. Around 35 lenders participated in Boeing’s existing credit lines.Read more: Boeing Weighs Another Cut to 787 Output in New Threat to CashThe $10 billion size of the new loan may increase if participation interest from banks exceeds the target size, the people said. Boeing has already borrowed $21.5 billion of new debt since the crash of its first Max planes in Indonesia in October 2018.The fresh funding comes as Boeing contends with reimbursing customers, keeping suppliers afloat and maintaining about 400 newly built Max that it can’t deliver until global regulators clear the jet to fly. A production halt taking hold this month on the Max, which has been grounded since March, is a sign that its emergence from the crisis will be lengthy.(Updates with potential 787 production cut in fifth paragraph)To contact the reporters on this story: Paula Seligson in New York at firstname.lastname@example.org;Jacqueline Poh in London at email@example.comTo contact the editors responsible for this story: Natalie Harrison at firstname.lastname@example.org, Claire BostonFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
To restore faith in the 737 MAX, Boeing needs to prove its flagship jet is not just airworthy but also a safe investment. Boeing said on Tuesday its troubled workhorse - grounded last March after two crashes in which 346 people died - should receive approval by mid-year from U.S regulators, paving the way for hundreds of jets to resume service later this year. "Even people who have committed to financing previously are wondering should I extend or should I just pull back to wait to see because they don't know the real value of their collateral going forward," said the head of an asset-management firm active in the sector, declining to be named to preserve relations with Boeing.
Per a report by U.K.-based flight data information firm OAG, the prolonged 737 Max grounding is estimated to have hurt global airline industry revenues by $4.1 billion in 2019.