The Boeing Company (NYSE:BA): April Faces Slowdown In Jetliner Deliveries


Dallas, Texas 05/09/2014 (FINANCIALSTRENDS) – The Boeing Company (NYSE:BA) reported slowdown in its commercial airplane deliveries during April 2014 which was reported at 56 as compared to 66 in March 2014. The slower sales kept it under the target from meeting its annual delivery forecast. However, the company remained the biggest global plane maker, beating the 52 jets delivered by rival Airbus in April 2014.

The sales decline was largely attributed to decrease sales of narrow-body 737s which remained at 39 during April compared to 44 in March 2014. However, among other models, it delivered one 747 in April compared to two in March; eight 787s and eight 777s in April compared to ten each in March.

However, the monthly number of jetliners deliveries, did not make much impact on the stock which almost traded flat during yesterday’s session and closed at $130.57, gaining 0.17% from its previous close. The stock is down close to 4% year to date and has gained nearly 40% over past 12 month period.

Jetliner Deliveries: A Key Indicator

Investors and analysts track jetliner deliveries because companies like The Boeing Company (NYSE:BA) and Airbus receive the bulk cash when they sell a jetliner. The Boeing Company investors are specifically interested to see growth in deliveries to supply cash for dividends and share buybacks as well as to work off $25 billion in deferred costs related to the 787 Dreamliner.

The company noted that as compared to the growth output over the last year, the delivery decline in April was less significant. Moreover, the company delivered 12 more planes in April 2014 on a year over year basis when compared with April 2013. The company spokesman Chaz Bickers explained that month to month variation is normal and depends on a range of factors including customer preference for deliveries. He also added that The Boeing Company (NYSE:BA) anticipates to deliver 715 – 725 commercial airplanes this year.

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