Boeing Bags ANA Order

Boeing Company (BA - Analyst Report) has bagged an order from All Nippon Airways (ANA) for five 777-200ER (Extended Range) and five 767-300ER jetliners. The order is valued at approximately $2 billion at list prices. 

Boeing’s 777-200ER jetliner is pitted against the A340-300 jetliner of Airbus. As of Oct 2009, Boeing delivered 412 777-200ER to customers in 33 countries. Boeing’s 767-300ER jetliner is pitted against the A330-200 jetliner of Airbus. Boeing has delivered 661 jetliners of the 767 series to customers across the globe as at end Nov 2009. 

The multi-billion dollar order will boost the commercial aircraft segment of Boeing. In the recently reported third quarter of fiscal 2009, the company booked 96 gross orders. The company finished the quarter with segmental backlog of $254 billion. 

Headquartered in Chicago, Boeing is the world’s largest manufacturer of commercial jet liners and military aerospace products (based on total sales). Boeing designs and produces commercial airplanes, defense systems, and civil and defense space systems. It is also the largest NASA contractor. Non-airplane products include helicopters, electronic and defense systems, missiles, satellites, rocket engines, launch vehicles, and advanced information and communication systems. 

Boeing is among the best-positioned companies among its defense peers due to its balanced exposure to commercial aircraft and defense equipment. Defense peers like Lockheed Martin Corporation (LMT - Analyst Report) and Northrop Grumman Corporation (NOC - Analyst Report) dabble only in defense equipment. 

Going forward we believe the $320 billion order backlog, strong order booking, stable cash flow generation and a globally diversified customer base will help maintain the growth momentum. However, a bearish commercial aerospace market, apprehension over growth in defense spending, and delays in the launch of the 787 series jetliner will affect the performance of the company in the near term.

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