Wednesday, July 23, 2008

Boeing Announces Meaningful Improvements

Boeing (BA) announced quarterly Q2 results, reaffirmed guidance and then let the market place figure out that earnings and margins worsened, not to mention that their cash position dropped some. (Working capital build for the dreamliner) The problems with the dreamliner have been aviation news for a long time. So read this quote from the earnings release:

“While Boeing continues to address challenges associated with the assembly of the initial airplanes, the program has achieved meaningful improvements in the completeness of structure and systems installations”

They went on to say that with the acquisition of 50% of Global Aeronautica they now have greater operational control. But they also caution that the risks remain.

It just does not sound like they have it nailed down tight. I hope the board has asked the right questions behind closed doors. But it does not sound like they are prepared to go public and make any definitive hard statements that the project is truly under control. If there are more slips what are the commercial penalties for late delivery?