Boeing, which already has delayed its new 787 Dreamliner 14 months, announced Tuesday it will know "soon" whether a supplier's damaged part on the fourth of six test planes will affect the program, Bloomberg News reported Tuesday.

The mid-body fuselage section built by Global Aeronautica LLC, a venture with Alenia North America, was damaged "by an Alenia employee not following proper work procedures" in Charleston, S.C., Boeing said, Bloomberg News reported. Boeing said it resolved the issue, but it is currently evaluating the error's impact on the plane's timetable.

Boeing's shares (NYSE: BA) fell 52 cents to $65.20 on the news in Tuesday morning trading.

Stock analyst C. Leonard Bauer said he's "not going to think the worst" regarding a possible timetable change, until Boeing knows definitively if it will affect production and roll-out.

Boeing said on Monday its 787 Dreamliner would make its first test flight in Q4 2008, reiterating that it would make its revised test flight date for the next-generation airliner, Reuters reported Tuesday.

First deliveries of the plane were also on schedule for Q3 2009, said Dmitry Krol, Boeing's director of communications in Russia and the Commonwealth of Independent States, Reuters reported.

Boeing's (NYSE: BA) shares rose 53 cents to $73.69 in Monday afternoon trading.

Independent stock analyst C. Leonard Bauer told BloggingStocks Monday Boeing's reiteration of the company's first-flight time deadline was not gratuitous.

The first 'power on' for Boeing's (NYSE: BA) next-generation 787 Dreamliner, now set for June 2008, will be a milestone, but by no means the final hurdle for the new plane, says an analyst.

Boeing said it has overcome 787 parts shortages and that subsequent planes are arriving at the final assembly line in better and better shape, The Associated Press reported Tuesday.

Boeing is the first major aerospace company to use a decentralized manufacturing model for a civilian commercial airplane, and the company has experienced a series of related snags that have delayed the launch of the 787 by about 15 months. Commercial airlines are now expected to take possession of the first 787 planes in Q3 2009.

C. Leonard Bauer, an independent stock analyst, told BloggingStocks Tuesday that any more delays for the 787 roll-out and Boeing "will be the last aerospace company to use a decentralized manufacturing model" for a civilian commercial airplane.

Airbus has again delayed delivery of selected A380 superjumbo jets, saying the company's transition to automated production is behind schedule.

Airbus now expects to deliver 12 A380 planes in 2008, down from 13, and 21 planes in 2009, down from 25, the company announced Tuesday.

Promoted as the world's most economical, large aircraft, the A380 is about two years behind schedule. The A380 will seat 525 passengers in a normal configuration, at least 50-120 seats more than its chief competition, Boeing's (NYSE: BA) 747, the wide-body industry standard.

In Europe, shares of Airbus's parent EADS were virtually unchanged on the news, down just 2 euro cents to 12.72 euros in afternoon trading. Boeing's shares gained five cents to $84.87.

Readers of this space know that the investment bias is toward large-cap companies with demonstrated business models and who have a competitive advantage in established markets, preferably with a favorable global trend as a support. And with the above in mind, Boeing is worth an evaluation.

The Boeing Company (NYSE: BA) is the world's largest aerospace company.

In general, analysts expect 3-5% revenue growth in FY 2008, and 7-10% in FY 2009 as Boeing's increased aircraft production to meet high order backlogs offsets production delays in the 787 Dreamliner.

Moreover, although not to give short-shrift to Boeing's Integrated Defense Systems division, now the world's second-largest military contractor, behind Lockheed Martin (NYSE: LMT), the major driver of BA's future value-added will continue to be its commercial aviation operation, led by the next-generation 787 Dreamliner.

Boeing Co. (NYSE: BA), whose shares have been battered by concerns about delays in the 787 Dreamliner, today reported better-than-expected earnings.

Profit rose to $1.21 billion, or $1.61 a share, from $873 million, or $1.12, a year earlier, the company said in its earnings release (pdf). Sales gained 4.1% to $16 billion. Analysts had expected earnings of $1.35 on revenue of $16.52 billion, according to Thomson Financial.

"We're off to a good start in what we expect to be another strong year of financial performance for Boeing," said Chairman, President and Chief Executive Officer Jim McNerney in the release. "We are methodically working through our challenges, including the start-up of the 787, and our people remain focused on satisfying our customers and leveraging growth and productivity into better bottom-line and top-line performance for our
company."

Backlog at the quarter was $346 billion, up 32% year-over-year, driven by orders for commercial airplanes at the V-22. Investors responded positively to the news, sending the shares up in premarket trading. The company also reaffirmed its guidance of $5.70 to $5.85 this year and gave guidance of $6.80 to $7 per share for 2009. Analysts expected profit of $5.93 this year and $6.87 for next year.

This goes to show you that yesterday's dogs become today's heroes on Wall Street. Anything remains possible in today's market where conventional wisdom regularly is proven wrong.

Boeing 's Q4 2007 earnings increased 5.1% on a rise in jet deliveries and improved productivity, the company announced Wednesday [pdf]. The company also stated that the 787 Dreamliner is on-schedule.

Boeing (NYSE: BA) reported Q4 2007 EPS of $1.36 versus the Reuters consensus estimate of $1.32. Boeing reported EPS of $1.29 in Q4 2006. The company reported Q4 revenue of $17.5 billion versus the Reuters consensus estimate of $17.2 billion.

Boeing shares jumped $1.88 to $82.85 in mid-day Wednesday trading on the news.

Boeing also revised its 2008 EPS guidance to $5-70-$5.85, up from the previous guidance of $5.55-$5.75. The Reuters 2008 EPS consensus estimate is $5.95.

787 Dreamliner on track

Equally important, Boeing said it was on track to meet its revised production schedule set earlier this month for its next-generation plane, the 787 Dreamliner. However, Boeing did not mention when power would be switched on in the first 787, or project a schedule for deliveries beyond stating that the first one would be delivered in early 2009. Boeing has secured more than 800 orders for the 787.

Airbus announced Wednesday that it beat rival Boeing in 2007 deliveries but trailed it in new orders.

Airbus said it delivered 453 planes to Boeing's 441 in 2007, according to a company statement. Meanwhile, Boeing (NYSE: BA) bested European-based Airbus in 2007 net new orders, 1,413-1,341. Airbus' 2007 delivery total was up 19 from 2006's 434. Airbus said it expects to deliver 470 planes in 2008.

"2007 was a challenging year but also successful year for Airbus," Airbus President and CEO Tom Enders said. "We were successful in the market and mastered the industrial challenges of the production ramp up, the timely delivery of the first A380, and the implementation of the Airbus Power 8 turn-around program. 2008 will be as challenging on all fronts. But I am sure that, with the dedication of our people and all involved, we shall master them. On the commercial side, I anticipate that our order intake will be above our deliveries."

Delay city

Airbus has been plagued by a series of production setbacks as it rolls-out two new commercial aircraft deemed critical to the aerospace giant's early 21st century aviation strategy: the 500-seat A380 superjumbo jet and the A350.

Boeing has delayed the delivery of the first 787 Dreamliner until early 2009 instead of late 2008, saying the rate at which jobs are being completed has not improved sufficiently to maintain the current schedule.

It's the second delay for the commercial aviation giant, which previously had delayed the introduction of the next-generation plane by six months. The 787's maiden flight will now occur near the end of Q2. The company underscored that the fundamental design and technologies for the 787 remain sound.

Investors early Wednesday took Boeing's delay announcement in stride. Boeing's (NYSE: BA) shares rose 16 cents to $78.02 in Wednesday morning trading.

The 787 Dreamliner program has encountered several bottlenecks due to parts shortages and assembly delays. Boeing has 817 orders for the plane, which is considered critical to its early 21st century commercial aviation strategy as it battles with rival Airbus.

Boeing (NYSE: BA) - The WSJ reported BA to announce new delays in the 787 Dreamliner Program.

BA is recently down $2.19 to $79.68.

BA February option implied volatility of 34 is above its 26-week average of 28 according to Track Data, suggesting larger risk.

Options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Boeing (NYSE:BA) posted net commercial airplane orders of 1,413 during 2007 - - a company record, the company announced Friday in a statement.

Boeing's 2007 net order total represents an eye-opening 35% increase from 2006's 1,044-airplane net order total and also represents the four straight year the company reached more than 1,000 orders. The 2007 order total is worth more than $150 billion at current prices.

Boeing now has 3,400 unfilled orders for commercial airplanes, the company said.

Bloomberg News reports that Boeing Co. (NYSE: BA) set another sales record in 2007. While it's not yet clear whether Boeing sold more than its competitor, Airbus, the 1,413 commercial jets Boeing sold last year highlight the power of effective competitive strategy.

I'm in the middle of writing a book about Boeing and have found it fascinating to examine the competition between Boeing and Airbus. In the 1990s, Airbus decided that it could beat Boeing by building the biggest jumbo aircraft on the market. By contrast, Boeing -- which was then under pressure from Airbus -- listened to the airlines and heard them say that they were facing competitive pressure from low-cost, point-to-point airlines like Southwest Airlines Co. (NYSE: LUV) -- whose strategy I analyzed in Value Leadership -- and needed mid-range aircraft that were more fuel efficient.

Boeing is closing-out 2007 in fitting fashion: with yet another order in an already record year for commercial plane orders for the company.

Boeing announced Thursday Australia-based Qantas has ordered 31 more 737-800 commercial jetliners, in a deal worth roughly $2.3 billion, Reuters reported.

The Boeing Company (NYSE: BA) officials told the Puget Sound Business Journal Friday that Qantas' order is the largest order for its 737 class single-aisle plane.

Two years ago, in December 2005 Qantas agreed to buy up to 115 next-generation 787 Dreamliners worth up to $6.1 billion, the Puget Sound Business Journal reported Friday.

Boeing announced Tuesday that it is still on track to fly its first 787 Dreamliner in Q1 2008 and deliver the plane to its first customer, All Nippon Airways, by the end of 2008, The Wall Street Journal reported (subscription required).

Boeing (NYSE: BA) also confirmed full-build 787 aircraft production plans. Earlier this year, Boeing delayed delivery of the 787 by six months to about December 2008, instead of May 2008, due to a parts shortage and also to complete additional work previously assigned to contractors, Bloomberg News reported. Boeing's shares were down 40 cents to $92.33 in Tuesday mid-day trading.

Boeing has 762 orders for the 787, valued at about $120 billion. Analysts view an aerospace company's ability to deliver planes on time as critical to the company's future prospects, due to the high cost airlines incur for delayed planes. Delayed plane deliveries also discourage future plane orders, analysts generally agree.



In addition to the 787's next-generation passenger amenities and substantially improved fuel efficiency, the plane also serves as a touch-point in the aerospace battle between Boeing and Airbus.

The Wall Street Journal reports that Boeing (NYSE: BA)'s 787 Dreamliner is being delayed due to its global value chain. This suggests that despite the best efforts of globalization proponents to extol the virtues of a flat world, there are still some mighty big rocks in its path.

Boeing encountered much bigger challenges than anticipated in its efforts to lower the $10 billion cost of developing the 787 by shifting the job to other companies. It mistakenly thought that it would be easy to snap together at its Seattle-area factory a collection of parts designed and built by worldwide suppliers. The resulting delays have affected 19 of the 52 airlines that have ordered the 787, some of which were counting on using their planes during the 2008 Summer Olympics. Boeing could end up paying millions in penalty payments to customers.

The basic problem Boeing faces is that its suppliers -- instead of using their own engineers to do the design work -- outsourced that work to even smaller companies. And in their eagerness to profit from the 787 windfall, overloaded themselves with work from multiple 787 suppliers. In effect, Boeing is now learning that it did not provide strict enough performance goals to its suppliers. And now it's at their mercy.