Chart in Focus: Boeing’s Key Indicators for 3Q17
Deliveries slow down
For the first half of 2017, Boeing (BA) delivered 352 aircraft, ~6.1% less than the 375 aircraft delivered in the first half of 2016. As a result, the situation in the third quarter has worsened for the aircraft manufacturer.
Boeing delivered 124 aircraft in 3Q17, comprising 88 737s, 24 787s, ten 777s, one 747, and one 767.
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Despite a slowdown, Boeing’s deliveries are higher during the same period than rival Airbus, which delivered 93 aircraft in the third quarter—41 A320s, 29 A321s, 13 A350s, seven A330s, two A380s, and one A319. Boeing has been leading Airbus in deliveries since 2012.
Boeing leads on the order front
Boeing overtook Airbus on the order front in 2017. Through September 19, 2017, Boeing had booked net orders for 433 aircraft, higher than Airbus’s net orders of 215 aircraft through August 31, 2017.
However, Airbus still leads Boeing on the backlog front. At the end of August 2017, Airbus’s order backlog stood at 6,690 aircraft versus Boeing’s 5,665 aircraft. This huge order backlog means more work for vendors such Spirit AeroSystems (SPR), United Technologies (UTX), and Honeywell International (HON).
What to expect
Boeing’s deliveries are on a downtrend for a second consecutive year. This means revenues could take a hit too, as lower deliveries could translate to lower revenues.
Boeing forms ~9.5% of the iShares US Aerospace & Defense ETF (ITA). ITA holds 9% in United Technologies (UTX), ~7.9% in Lockheed Martin (LMT), 6.5% in General Dynamics (GD), and 6.5% in Raytheon (RTN).