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Boeing's fourth quarter EPS came in at $5.18 with revenue on revenues of $25.4Bil. On an adjusted basis, $BA had a tax benefit of $1.74 per share. For 2017, jet deliveries stood at 763 and the firm expects to deliver 810-815 jets due to improved air traffic. The company's backlog surged to $488Bil at the end of the year to deliver 5,864 jets.
Boeing got the go ahead to fly commercially its 787-10 Dreamliner from the US Federal Aviation Administration (FAA). Assembled exclusively at North Charleston, 787-10s can carry 330 passengers up to 6,430 nautical miles. $BA has got 171 orders for 787-10 and Singapore Airlines is expected to get the first 787-10 during the first half of 2018.
Morocco's national carrier Royal Air Maroc (RAM) has placed an order for four 787-9 Dreamliners with Boeing valued at $1.1Bil (list price). With this purchase total $BA Dreamliners fleet with RAM would be nine. Air Maroc intends to use these planes for expanding its service in Africa and across the world.
Boeing received its maiden international order for its KC-46 tanker from Japan Air Self-Defense Force. The deal valued at $279MM was awarded by US Air Force via Foreign Military Sale (FMS) program to $BA. FMS Program is managed by Defense Security Cooperation Agency, which facilitates procurement of defense equipments to foreign governments.
Boeing announced today that flydubai has finalized the order of 175 737 MAX aircrafts, valued at $27Bil. The deal also comes with the provision to order 50 more airplanes. It is the largest order made by flydubai since inception which runs an all-Boeing fleet. Earlier this year in Dubai Airshow, flydubai has committed to buy 175 jets from $BA.
Boeing unveiled its prototype of unmanned aircraft system (UAS) to participate in the MQ-25 Stingray unmanned carrier aviation air system competition (UCAAS). US Navy is conducting the competition to choose UAS with unmanned refueling capabilities. $BA plans to complete the engine runs before moving to deck handling demonstrations in early 2018.
Boeing inked an agreement with Netherlands' defense ministry to upgrade six Chinook helicopters. This deal would help Royal Netherlands Air Force (RNLAF) to have all 20 Chinooks with the latest configuration. $BA expects to start deliveries by 2021. It is to be noted that Dutch bought 14 Chinooks in 2016 via US DoD Foreign Military Sales program.
Boeing has increased the quarterly dividend by 20% to $1.71 per share. The company has set the record date as Feb 9, 2018 and the payment date as March 2, 2018. $BA's board has also replaced the existing share repurchase program with a new $18Bil program. It expects to buy back shares as per the new repurchase program over the next 24 to 30 months.
Boeing has completed its maiden flight for KC-46A tanker. In addition, it also carried out tests as per the Federal Aviation Administration (FAA) guidelines. $BA expects to deliver 18 tankers to US Air Force by early 2018. It has contracts to deliver 34 tankers, which will be replacing the KC-135 fleet used by US Air Force.
Boeing has awarded a five-year contract to Germany-based Aircraft Philipp group to manufacture parts for H-47 Chinook helicopters. $BA added that it is the first contract to be signed with Germany based firm. Aircraft Philipp is going to manufacture parts in its Bavaria and Baden-Wurttemberg facilities.
Boeing has inked an agreement with flydubai for 225 737 MAX airplanes worth $27Bil. The deal is touted to be the largest single-aisle jet order by no. of aircrafts and value from Middle East. The agreement includes 175 firm orders and purchase rights for 50 more MAXs. State-owned Emirates and flydubai has placed orders worth $42Bil with $BA.
Aircraft leasing firm AerCap announced that it is leasing six Boeing 787-9 Dreamliners to Egypt’s national carrier EGYPTAIR. The deal was inked at the ongoing Dubai Airshow. AerCap is $BA's largest customer for its 787 fleet with 115 airplanes either owned or ordered.
Ethiopian Airlines has placed an order for four $BA 777 Freighters valued at $1.3Bil. The deal was signed at the ongoing Dubai Airshow. Boeing plans to deliver the aircrafts in 2018 and 2019. Net orders for 777 fleet touched 57 in 2017. The company also plans to launch its long-range 777X in 2019.
$BA unveiled its 2017 Current Market Outlook (CMO) for Middle East at the Dubai Airshow. In the next 20 years, the region would require 3,350 new airplanes, which is worth $730Bil. The aircraft maker also added that twin-aisle airplanes would garner nearly 50% of the market and more than 70% of the value at $520Bil.
Azerbaijan Airlines has placed an order for five 787-8 Dreamliners. The announcement was made at 2017 Dubai Air Show, the biennial event for the aviation industry. The airline also made a commitment to buy two large freighters with $BA. Total deal value is $1.9Bil. The airline will be the launch customer for 787 Landing Gear Exchange Program.
Dubai-based carrier Emirates has ordered 40 787-10 Dreamliners at the Dubai Airshow. The deal which is worth about $15Bil are expected to be delivered from 2022. $BA has clinched this deal from its rival Airbus (A350). Emirates so far has ordered 204 wide-body aircrafts with Boeing.
$BA has stated its priorities on cash deployment. First priority is to invest organically; second returning value to shareholders (approx. 100% of free cash flow) and lastly, to focus on M&A, partnerships etc. On competition, CEO said, "We like competition. We're confident we can win. But it's important that everybody plays by the same rules."
$BA’s 3Q margins were impacted by $329MM extra costs incurred on KC-46 aerial refueling tanker program, as the program is in the late-stage testing and certification. First tranche of 18 tankers are expected to be delivered in 2018. The company is increasing its production rate on the 787 program from 12 to 14 airplanes per month in 2019.