The Boeing Company (NYSE:BA) is the largest aerospace company in
the world, with its heritage mirroring the history of aviation.
It is the world's largest manufacturer of commercial jetliners
and military aircraft, and the nation's largest NASA contractor.
In terms of sales, Boeing is the largest U.S. exporter. Total
company revenues for 2000 were $51 billion.
The global reach of the company includes customers in 145
countries, employees in more than 60 countries and operations in
26 states. Worldwide, Boeing and its subsidiaries employ more
than 198,000 people - with major operations in Seattle-Puget
Sound area of Washington State; Southern California; Wichita,
Kansas; and St. Louis, Missouri. Boeing is organized into six
major units: Commercial Airplanes, Space and Communications,
Military Aircraft and Missiles, Shared Services, Air Traffic
Management, Connexion by Boeing and Boeing Capital Corporation.
Reasons To Invest
Despite the global economic slowdown, Boeing along with its
shares continue to fly high. The company reported earnings late
last week, which handily bested consensus expectations. Boeing
has a recent history of beating analyst estimates in terms of
both earnings and sales, which is a testament to the company's
superior management and its execution. And for its superior
management, Boeing represents a good long-term investment for
those looking for diversification away from the technology
sector of the market. However, although Boeing is an old
economy manufacturing giant, it's not necessarily blind to the
advantages of technology. In fact, the company is transforming
itself into a leaner, more competitive manufacturer in order to
meet its long-term growth rate of 15 percent.
Boeing has begun to outsource more of its manufacturing
operations in an attempt to cut costs and increase efficiencies.
In addition, the company is becoming more aggressive in its
Space and Communications unit, which in and of itself, is a
high-tech operation within Boeing's businesses. This division
earned roughly $2 billion in revenues during Boeing's most
recent quarter, although it's still in the investment phase.
While profits only amounted to $84 million, the Space and
Communications division holds long-term promise in terms of
profits through its satellite manufacturing and information
Although Boeing is entering new frontiers in terms of its
business segments, its core source of earnings remains the
manufacturing of airplanes and contracting of defense-related
projects, which were the drivers behind the company's most
recent earnings out performance.
The new business lines, such as Space and Communication, Air
Traffic Management and its airborne Internet service, known as
Connexion, should drive earnings forward in the future, and help
Boeing reach its long-term growth target of 15 percent, while
returning profits to investors.
Shares to Qualify = 1 Accept Foreign Accounts: Yes
Auto-reinvestment = Yes Temper Enrollment Serv: Yes
Min/Max Investment = $50 to $100,000/year
Dividend: $1+comm Cash: $1+comm Auto ReInvest: 0
Industry Group: Aerospace 52-week high=$70.94
Annual Dividend Per Share=$0.68 52-week low =$34.06
Last earnings 04/20 est=0.80 actual=0.89
Next earnings 07-17 est=0.91 versus=0.71
P/E = 25
Strong Buy = 6
Moderate Buy = 8
Hold = 4
Moderate Sell = 0
Strong Sell = 0