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Bonds Are a 'Safe' Investment: A Big Lie Gets Even BiggerWith all of the fanfare about Boeing Co.'s (NYSE:BA) recent success, it is hard to believe that 2006 will be the first year that it has outsold rival Airbus.
Boeing should ship over 900 planes this year compared to Airbus's 700. Delays in the Airbus super-jumbo 380 have not helped the European company. Sales of Boeing's 777 Freighter and an uptick in 747 orders have helped the company.
But, Boeing's lead may not last. The Airbus 380 is coming online now, and the plane does carry a passenger load much larger than Boeing's new 747-8. And, sales of the Airbus 320 have started to pick up. In November, most of the Airbus planes sold were 320s.
Boeing's stock has stepped up nicely due to both commercial and military orders, but it now sits at close to $90. Just under two years ago, it was below $50.
It may not take much of a resurgence at Airbus to stop the upward movement in Boeing's shares.
Douglas A. McIntyre is a partner at 24/7 Wall St.
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Reader Comments (Page 1 of 1)
12-27-2006 @ 11:06AM
Peter Karaso said...
How long will Boeing's current order's last?
12-27-2006 @ 11:07AM
Peter Karaso said...
How will Boeing do in 2007?
1-27-2007 @ 2:44PM
Jim Kaufman said...
A couple of corrections to Mr. MeIntyre's story. First, 2006 is not the first year Boeing outsold Airbus. It is the first year since 2000. Prior to that, Boeing outsold Airbus every year. Second, Boeing will not ship 900 aircraft this year, nor Airbus 700. Those numbers represent aircraft sold this year, not actually shipped. Shipments from both manufacturers are close to 400 each. Airbus and Boeing get most of their money on shipments, not orders. So orders give an indication of profits in a few years.
He also comments that in November, Airbus sold mainly A320s. That can be said about any month, since the low-profit A320 is about all the sales Airbus had this year, and is the bulk of its sales in previous years.
Now for speculation: The price of Boeing stock will sit pretty still until the announcement of the USAF tanker competition in autumn 2007. If Boeing wins, expect a jump. If Airbus wins with it's A330-based tanker, expect a jump in EADS stock. The winner supplies an inital batch of 179 wide-body tanker aircraft, and has the inside track on the remaining replacements for the rest of the KC-135 fleet (about 500 total). It's worth hundreds of billions of dollars in total.
12-27-2006 @ 2:36PM
Byron Spain said...
Boeing stock will continue to rise as long as Airbus is being run by a bunch of politicians who specialize in dumb decisions. The huge A380 has a very limited market whereas the Boeing 787 will appeal to a vast array of carriers. Not withstanding commercial orders, Boeing's military business will continue to be very profitable if from nothing else than spare parts and repairs. The FA 18 and V 22 programs generate huge sales and the satelite business is nothing to sneeze at either.
1-28-2007 @ 8:16AM
douglas mcintyre said...
The link makes the year 2000 issue clear.
Doug McIntyre
1-27-2007 @ 2:48PM
douglas mcintyre said...
The link makes the year 2000 issue clear.
Doug McIntyre
12-28-2006 @ 2:00PM
Chris Vaaler said...
It won't be two years until the A380 production line "comes online". To wit, please see December stories in the Chicago Tribune and International Herald Tribune.