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Sunday, 04/22/2001

BA - Boeing Co.

Company Description

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.

(source: Boeing)

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 technology-intensive focus.

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.

DRIP Information:

Shares to Qualify = 1           Accept Foreign Accounts: Yes
Auto-reinvestment  = Yes         Temper Enrollment Serv:  Yes

Min/Max Investment = $50 to $100,000/year
Reinvestment Fees: 
Dividend: $1+comm        Cash: $1+comm        Auto ReInvest: 0

Transfer Agent:

Bank Boston


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
Analyst Ratings:
Strong Buy    = 6
Moderate Buy  = 8
Hold          = 4
Moderate Sell = 0
Strong Sell   = 0


Copyright 2003

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