|Bid||316.49 x 1800|
|Ask||316.69 x 1000|
|Day's Range||314.00 - 319.36|
|52 Week Range||302.72 - 446.01|
|Beta (5Y Monthly)||1.19|
|PE Ratio (TTM)||47.65|
|Forward Dividend & Yield||8.22 (2.60%)|
|Ex-Dividend Date||Feb 12, 2020|
|1y Target Est||N/A|
General Electric reports earnings tomorrow. JPMorgan's Stephen Tusa said the eventual return of Boeing's 737 Max could hurt GE's bottom line.
Moody's Investors Service, ("Moody's") assigned a Ba3 rating to Arconic Rolled Products Corporation (Arconic) senior secured 2nd lien bonds. The Ba2 Corporate Family Rating (CFR), Ba2-PD Probability of Default rating and the Ba1 rating on the company's $1 billion senior secured first lien revolving credit facility and $800 million senior secured first lien Term Loan B were affirmed. Arconic Rolled Products Corporation is the spin off from its parent, Arconic Inc of the Global Rolled Products, Extrusions, Building and Construction businesses.
During the last shortened trading week, the US stock market lost some ground as concerns regarding the new coronavirus outbreak in China overshadowed the strong financial results reported by a number of companies, including Intel Corporation (NASDAQ: INTC), American Express Company (NYSE: AXP), and IBM (NYSE: IBM). The stock markets in the US were closed […]
Orders for long-lasting or durable goods surged 2.4% in December owing to the military, but business investment in the civilian part of the economy declined again to finish the year weakly.
New orders for key U.S.-made capital goods dropped by the most in eight months in December and shipments were weak, suggesting business investment contracted further in the fourth quarter and remained a drag on economic growth. For now, however, the longest economic expansion on record looks set to continue, with other data on Tuesday showing consumer confidence surged to a five-month high in January amid optimism over the labor market. Weak business investment and the resulting slump in manufacturing have been on the radar of Fed officials who have blamed trade tensions, especially the White House's 18-month trade war with China, and an uncertain global economic growth outlook for the malaise.
Although overall durable goods orders rose a better-than-anticipated 2.4% last month from November, orders for nondefense capital goods, excluding aircraft, unexpectedly declined 0.9%.
Increased fiscal defense budgetary provision along with widespread geopolitical tensions is likely to have boosted defense stocks' Q4 performance.
United Technologies Corp Chief Financial Officer Neil Mitchill said he expects 2020 operating profit at the U.S. aircraft parts maker's Collins Aerospace unit, its biggest, to be hurt largely due to the grounding of Boeing Co's 737 MAX aircraft. UTC forecast adjusted operating profit at the unit, which makes products such as avionics, cabin seating and lighting, to be hit by about $550 million to $600 million. About $225 million of the impact to its full-year operating profit is due to a divestiture and lower sales related to a surveillance technology that facilitates tracking of aircraft position during flight, Mitchill told Reuters.
(Bloomberg Opinion) -- This time two years ago, General Electric Co. could do nothing right and Boeing Co. could do little wrong. GE had just shocked the markets by revealing a $15 billion reserve shortfall in its long-term care insurance business, proving that a tendency to dress up poor decision-making with an optimistic sheen ran much deeper than its power unit. Boeing, having surpassed GE in November 2017 as the largest U.S. industrial company by market value, continued to wow investors with ever-rising cash flow and escalating share buybacks amid an expected surge in output for its best-selling 737 Max jet.As GE’s struggles continued, much was written about the tarnishing of its once-prized corporate culture and the deserved comeuppance of executives’ push for market dominance at any cost. In hindsight, some of that criticism should have also found its way to Boeing, which had counted many a GE executive among its leadership ranks and bore the same hallmarks of extreme corporate hubris. But shares of Boeing continued their rise even after the first fatal crash of the Max in October 2018. They peaked on March 1, 2019, about one week before a second Max jet crashed and everything changed.As the global grounding of the Max approaches one year and troubling disclosures around its development continue to pile up, Boeing is having its own reckoning. Using GE as a guide, the road to redemption will be long and challenging. In a twist of fate, both companies are due to report earnings on Wednesday. The actual numbers matter less than whatever symbolic guideposts the updates might yield as far as the companies’ progress on putting their missteps behind them.At GE, cash flow remains the focal point and the Max grounding affects that number. GE’s joint venture with Safran SA provides engines for the jet, and the company had predicted a $1.4 billion drag on receivables in 2019 in the event the Max grounding persisted through the end of that year. But the impact on overall free cash flow for the aviation unit is mitigated by the fact that GE loses money when it ships new engines and has likely been able to shift production to more profitable spares instead, according to JPMorgan Chase & Co. analyst Steve Tusa. Just as important for CEO Larry Culp’s turnaround efforts is the level of transparency on the puts and takes behind the numbers and the degree to which management is still trying to manage expectations to set up optical “beats” in 2020.For Boeing, it will be the new management team’s first official appearance since CEO Dennis Muilenburg’s abrupt ouster and the subsequent release of damning internal messages that portray a culture where business goals trumped safety concerns. A recent warning that its “best estimate” for the Max’s return is now mid-2020 will likely translate into significant charges, but may signal a more conservative tone is finally taking hold. Jefferies analyst Sheila Kahyaoglu estimates payments to customers coping with continuing delays could add up to $16 billion, while the drag on the overall productivity of the program could force a $9 billion accounting charge in total. Boeing reportedly has secured commitments for more than $12 billion in financing to help backstop the company while it deals with the fallout from the grounding.The Max crisis is the culmination of decades of bad decisions – from putting 2,000 miles between Boeing engineers in the Seattle-area and executives in Chicago to initially underestimating the appeal of a more fuel-efficient narrow-body offering from Airbus SE and declaring the market would wait for ”something more revolutionary” from Boeing. Those decisions were unique to Boeing and yet in some ways, they really weren’t. Having covered GE throughout its recent crisis, there’s a lot of deja vu and not just because some of the same characters come into play over and over again.An stubborn aversion to coming in second place or admitting shortcomings runs deep at both companies. In the best of times, that can be a powerful motivational tool. In the worst of times, it leads to out-of-the-loop or willfully blind executives. This is how the $15 billion hole in GE’s legacy long-term care insurance business was allowed to lurk beneath the surface for years and why a convoluted way of reporting results persists to this day. It’s how Boeing senior executives didn’t know until after the first Max crash that company engineers had discovered much earlier that warning sensors meant to be standard only worked for customers who had paid up for additional features. It explains why Muilenburg was consistently overly optimistic, some might say arrogant, when it came to the Max. It’s why he initially blamed the crashes on a “chain of events,” of which the Boeing software system that triggered the planes’ nosedives was just one. And tragically, it’s how 346 people lost their lives when they boarded Max jets.It’s hard to envision a better human realization of this melding of cultural dynasties than the current Boeing CEO, David Calhoun. He spent nearly three decades at GE, mostly under Jack Welch, and was thought by some to be a CEO contender, but lost the top job there to Jeff Immelt. He was also reportedly in the running for the Boeing CEO job years ago, but that went instead to Muilenburg’s predecessor Jim McNerney, another Welch protege. A Boeing board member since 2009, Calhoun blessed many of the decisions that led the company into the mess that he’s now being handsomely paid to fix. GE also tried to remedy its problems with an insider in John Flannery; it didn’t work. Whatever you think of GE’s longer-term prospects, it’s clear that the worst is behind that company and that’s largely to the credit of Culp and a much-revamped board. If Boeing’s crisis has parallels to GE’s woes, perhaps its path toward recovery can as well.To contact the author of this story: Brooke Sutherland at firstname.lastname@example.orgTo contact the editor responsible for this story: Beth Williams at email@example.comThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Brooke Sutherland is a Bloomberg Opinion columnist covering deals and industrial companies. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
United Technologies beat Wall Street estimates. The outlook for aerospace remains strong, but the 737 MAX remains a headwind for all aerospace suppliers.
United Technologies will have a busy 2020 with spinoff and merger transactions to complete. The company reports its fourth-quarter earnings on Tuesday.
(Bloomberg Opinion) -- Whenever it’s seemed like Airbus SE might steal a march on Boeing Co., something has come along to throw a spanner in the works. A decade ago Airbus was consistently delivering more planes than its arch-rival but its competitiveness was eroded by the strong euro and the nightmare of building the ill-fated A380 superjumbo.Until the two recent fatal crashes involving the Boeing 737 Max, it seemed like a similar story. While both companies had brimming order books, Boeing’s cash flow was going through the roof and Airbus was bedeviled by production difficulties on new commercial aircraft and technical troubles involving the A400m military transporter. A long-running World Trade Organization dispute with Boeing tilted in the Americans’ favor. Worst of all, Airbus found itself under investigation by U.K., French and U.S. authorities over allegations it paid bribes to win aircraft orders and violated arms export laws.Tuesday’s news that Airbus has reached tentative agreement about a settlement of those cases ends a big management distraction and a cloud over the company’s investment case. The alleged payments to middlemen are a stain on Airbus’s history. The good news is that following a management clear-out, the manufacturer is well positioned to move on from this dark period.There’s no clarity yet on the fines Airbus will end up paying; investors have long assumed they’ll run into the billions. But with almost 18 billion euros ($19.8 billion) of gross cash at the end of October, and a big cash inflow expected in the fourth quarter, Airbus will have no trouble paying the bill.The A400m continues to be a burden on cash flow and Airbus is still having production difficulties, this time involving the A321 passenger jet. Even so, with the 737 Max still grounded and Boeing facing a backlash from regulators and customers, the duopoly is starting to look very unbalanced.Airbus trounced Boeing last year on orders and deliveries, and 2020 isn’t shaping up any better for the Americans. Reports that Boeing’s new boss Dave Calhoun wants to rethink his company’s plans for a new mid-market aircraft should allow Airbus’s long-range A321XLR to lock up more orders.To be sure, a wounded rival is dangerous thing. Boeing could yet decide that the best way to leave behind the 737 Max ignominy is to build a completely new single-aisle aircraft, which would oblige Airbus to follow suit. Yet the almost 50% increase in Airbus’s share price since the start of 2019, reflects hopes it will be able finally to press home its advantage and lift cash returns to shareholders. The shares rose another 3% on Tuesday, valuing the company at 107 billion euros ($118 billion).A decade ago Airbus was worth just 11 billion euros. While it’s long been Boeing’s equal in technical innovation, in profitability and cash terms the European plane-maker seemed a tortoise to Boeing’s hare. After the 737 Max disasters we can see the corners Boeing cut to engineer that success, from squeezing suppliers to browbeating regulators. Airbus can afford to reward shareholders without being so aggressive.Paying bribes to win business is deplorable; selling a fundamentally unsafe aircraft is worse. Both companies have lessons to learn but Airbus’s wounds are closer to healing.To contact the author of this story: Chris Bryant at firstname.lastname@example.orgTo contact the editor responsible for this story: James Boxell at email@example.comThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Lockheed Martin said solid F-35 sales over the final months of the year supported aeronautics sales and helped the defence group post stronger-than-expected fourth quarter earnings.
Boeing's twin-aisle 777X completed its first test flight Saturday, but questions still remain about the jetliner's marketability.
European planemaker Airbus said on Tuesday that it had agreed to reach a settlement with French, UK and United States' authorities regarding a probe into allegations of bribery and corruption. "Airbus confirms that it has reached agreement in principle with the French Parquet National Financier, the U.K. Serious Fraud Office and the U.S. authorities," Airbus said in a statement.