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Boeing swung back to profit in Q2; raises 2017 earnings outlook
Boeing posted second-quarter profit beating Street estimates even though sales were less than expected. Profitability from 787 Dreamliner contributed to strong cash flow as the firm focuses on streamlining production of new 737 MAX models and finishing development of other upcoming planes. The company will cut full-year capital expenditure by $300 million. Check out the 2Q earnings snapshot: http://alphastreet.com/b8770882
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- Revelation
- Posts: 29621
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Re: Boeing swung back to profit in Q2; raises 2017 earnings outlook
Seattle Times write-up at http://www.seattletimes.com/business/bo ... -smoothly/ says:
Seems the doom and gloom of various recent a.net threads was misplaced.
Boeing is poised to continue generating a cash gush as it speeds work in its factories to capitalize on a record backlog for the single-aisle 737, the company’s largest source of earnings. Falling manufacturing costs for the newly profitable 787 jetliner are another source of strength, and a counterbalance to curbed production of the 777.
The balance of inventory and factory costs for the Dreamliner fell $531 million to $26.5 billion during the second quarter. The measure shrank $316 million during the first quarter to $27 billion.
The company has promised a steep improvement in cash and savings from the Dreamliner as it refines the plane’s manufacturing process, mainly builds the higher-margin the 787-9 and -10 variants and no longer has to compensate airlines for late deliveries.
Seems the doom and gloom of various recent a.net threads was misplaced.
Re: Boeing swung back to profit in Q2; raises 2017 earnings outlook
Here I was lead to believe by Airliners.net folks and Leeham articles that Boeing was a dead man walking. Nice to hear they beat the St expectations. All in all, a pretty tidy shop.
737-Selling like hot cakes, new models doing extremely well so far.
747-Handling the end of the ERA and focusing on profitable cargo only line for now.
767-Hiccups in the tanker program but it will bring in a TON of money during it's lifetime plus any commercial sales are gravy.
777-Sales continue to help bridge the gap, new models still in their infancy. Does it continue the lines utter dominance in the market? Resources needed along with company's focus.
787-Wow, making a profit for the company and doing what it needs to do.
MOM-Really exciting to see what transpires and if it goes forward what does an all new Boeing design look like.
737-Selling like hot cakes, new models doing extremely well so far.
747-Handling the end of the ERA and focusing on profitable cargo only line for now.
767-Hiccups in the tanker program but it will bring in a TON of money during it's lifetime plus any commercial sales are gravy.
777-Sales continue to help bridge the gap, new models still in their infancy. Does it continue the lines utter dominance in the market? Resources needed along with company's focus.
787-Wow, making a profit for the company and doing what it needs to do.
MOM-Really exciting to see what transpires and if it goes forward what does an all new Boeing design look like.
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- iamlucky13
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Re: Boeing swung back to profit in Q2; raises 2017 earnings outlook
CX747 wrote:Here I was lead to believe by Airliners.net folks and Leeham articles that Boeing was a dead man walking.
Which Leeham article? The last one that seemed to get much discussion around here was about how the 787 likely wouldn't pay back the deferred production costs as quickly as claimed.
It didn't say anything even remotely like Boeing is dead man walking. Where'd you get that from?
They've made frankly very impressive progress on the 787 margin, but each cost increment they reach for it will be harder than the last as the low-hanging fruits in the production system are implemented. The $21.9 million margin per plane they are currently making would leave them with an accounting block of about 1900 if they couldn't wring any more cost out of it, but also if prices didn't start to fall later in the production life of the aircraft. It seems reasonable to expect they'll continue bringing the cost down and trim that accounting block further, but I can't yet put much confidence in them reaching the roughly $43 million per plane margin they would need in order to maintain the current 1300 plane accounting block.
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- frmrCapCadet
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Re: Boeing swung back to profit in Q2; raises 2017 earnings outlook
Also of interest in the Bloomberg report, analysts and others in the financial world have relied on cash flow for some time. They feel it better describes Boeing's value.
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