(BA) Boeing Maintains Delivery Level in 2011 Second Quarter

The international commercial airplane producer, The Boeing Co. (BA) maintained its delivery level in the second quarter of 2011 with deliveries of 118 airplanes versus 114 in the second quarter of 2010 and 104 airplanes in the first quarter of 2011.

The 737 model continues to be a major pillar of Boeing’s strength in the commercial airplane sector with deliveries of 94 airplanes, followed by its 777 model with 19 deliveries. Both these models continue to do well due to their fuel efficiency and lower operating costs compared to competing models.

Boeing is on course to meet its commercial airplane delivery target for 2011, which is expected to be in the range of 485 to 500 airplanes. The guidance also includes the expected delivery of the first 787 and 747-8 models, starting from the third quarter, and together accounting for 25 to 40 airplanes.

However, gross orders received for new airplanes during the second quarter were 77 airplanes versus 88 airplanes received in the year-ago quarter. The figure is significantly lower than 153 orders received in the first quarter of 2011.

The reduction in order booking for Boeing’s commercial airplanes during the quarter was mainly due to the excellent orders at its France-based rival Airbus. Gross orders for Airbus in the second quarter touched 708 airplanes. Airbus was able to secure bulk orders for its A320neo model on the strength of the new engine option.

Boeing expects commercial airplanes to generate revenues in the range of $36 billion to $38 billion in 2011, exceeding the 2010 level of $31.8 billion. The much awaited 787 Dreamliner is scheduled to reach its launch customer during the third quarter and can aid Boeing to get more commercial orders provided the airplanes do not disappoint expectations.

Chicago-based Boeing Co. currently has a Zacks #4 Rank (short-term Sell rating). The company competes with the likes of General Dynamics Corp. (GD), Lockheed Martin Corporation (LMT) and Northrop Grumman Corporation (NOC).

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