The Boeing Company and their Military Projects.

The Boeing Company is one of the top players in industrial sector. It is the largest aerospace and Defense Company around the globe. The company’s headquarter is situated in Chicago, and its known for manufacturing cargo transportation, aircraft for passenger, and also for defense purposes it manufactures military airplanes. The company generates the majority of its revenues from the US market, and the second higher contributor in Boeing’s revenues is Asian market excluding China. US contribute 46% in company’s total revenues, meanwhile Europe contributes 13% and Middle East contributed 12% in fiscal year 2013.  TheBoeing Company has two major business segments; Defense, Space & security and Commercial Airplanes. In fiscal year 2012, the commercial business segment of Boeing generated sales of 61% and the rest was generated from the defense aircrafts. The sales of defense business segment of Boeing in third quarter fiscal year 2013 were $3.5 billion with 6.5% year over year increase in the sales of company. 

Delta Airline Planning to reduce its Operating Cost.

Delta Airline is a leading company in the airline industry, and it is the only company that operates a crude oil refinery as well. DeltaAirline plans to reduce its operating costs that are fuel costs by 30% that will be possible as the company increases its activities at its trainer refinery. When the production of this refinery will increase then the delta airline’s jet fuel cost will decrease by 25%, and if the company invests more on the infrastructure of trainer refinery only than it will be able to increase the output of its refinery by 40%. The delta airline has an edge over the other airline companies, because the other companies hedge jet fuel cost for the long term, and makes contracts with the oil companies. But delta airline doesn’t need to make any long term contract with any other company, as it can produce enough jet fuel that it might rely on that. By decreasing the jet fuel costs, the company has an edge to generate more profits and make its position strong in the market. Delta plans generate operating margins of 8% for the current quarter, and it will improve its future bottom line as well. 

Boeing Strong Positioning in the Aerospace Market.

Boeing released strong results for its first quarter fiscal year 2014 on Wednesday, and after the announcement of the results BA Stocks surged by 3% the same day. The analysts believe that BA Stocks might seem to be expensive at around 18x 2014 earnings but it is quite appropriate in terms of premium multiple. The performance of Boeing is mainly influenced by the airlines overall performance, if the airline industry performs well than it will have the purchasing power to buy new airplanes and for that they will consider Boeing first as it has been the most reliable company so far. The innovative airplanes of Boeing have become a significant part of the airline industry as the airplanes are quite fuel efficient. This makes perfect sense for the 5 years backlog of the company for upcoming years. The company’s positioning in the aerospace market is quite strong, that gives the company an edge to be profitable for the upcoming years. Boeing’s earning per share for the first quarter fiscal year 2014 was $1.76 higher than the expected per share earnings of $1.56 on revenues of $20 billion. The estimated revenues for the quarter were $100 million lower than the actual revenues generated by the company. Although the company has been facing quite a trouble in past one year, but still the revenues of the company was up by 8.3% year over year. The company’s core operating earnings were up around 12% up to $2.095 billion because of the company’s strong margins. The commercial division of Boeing’s performance was quite well for the quarter and the revenue increased by 19% with operating profits of 23%.