Boeing Co (BA) Ready To Create Record Commercial Aircraft Deliveries In 2015

Boeing (BA)

After announcing an increase in share repurchase fund and 25% increase in dividends, Boeing Co (NYSE:BA) is all set to make another record in 2015. The world’s biggest airplane manufacturer is ready to deliver up to 754 commercial jets in 2015.

According to the recent forecast from the U.S. Aerospace Industries Association, the jet manufacturer’s commercial airplane deliveries would cross 750-mark with a 5.5% increase from previous year. These stats are in alignment with the forecast from Boeing Co (NYSE:BA), which is likely to make 752 deliveries next year. The company is planning deliveries in the range of 715 to 725 jets this year.

The company is all set to lower its production of 747-8 jumbo jet to 1.3 in September 2015 from current rate of 1.5 per month. However, the analysts are expecting lower production rate for 777 “mini-jumbo” to ensure running of its production lines for the transitioning 777X model. The lower production of 747-8 is because of the lower demand for the jet airliner.

Boeing (BA)

Boeing Co (NYSE:BA) is focusing on its other models including 787 and 737 models. The jet manufacturer is likely to increase its already high production rate of 737s from 42 to 47 per month in 2017 and 52 in 2018. The same goes for its 787 model, which is manufactured at the rate of 10 jets per month and the company is pushing it to 12 jets per month in 2016 and up to 14 in 2020.

Earlier this week, Boeing Co (NYSE:BA) announced increase in its share repurchase program to $12 billion and the shareholders would receive dividend of 91 cents per share.

Jim McNerney, CEO of Boeing, said, “Strong operating performance across our business continues to generate significant cash flow and financial strength for Boeing. That strength, coupled with the solid growth outlook for commercial aviation and Boeing’s unmatched product and services portfolio, provides us with the foundation to continue our balanced cash deployment strategy, investing in our core programs while increasing shareholder value.”

This article has been written by Prakash Pandey.

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