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Corporate Finance Boeing

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Corporate Finance Boeing
Introduction For this assignment, I chose the American multinational corporation Boeing (The Boeing Company) which is one of the largest aircraft and aerospace manufacturer in the world. I thought that it would be a good idea to take Boeing as it has been into some media frenzy recently, because of its latest commercial aircraft the 787” Dreamliner” grounded by Federal Aviation Administration (FAA) and aviation authorities around the world. A good case to see how a company future assets valuation may be impacted by investment strategies into research development; The company operates on five segments, it specializes in manufacturing of commercial aircraft (747, 777, 787), but also in military aircraft, helicopters (Apache, the Chinook, and the Osprey) as well as satellites, launch system and rockets with its Boeing Integrated Defense Systems division. Boeing’s products are completed by a portfolio of services. Major customers are private but also public including the US Department of Defense and NASA. Additionally, Boeing provides airplane financing and leasing services to both commercial and military customers. (Diversification of incomes) Boeing operates in 90 countries; its headquarters is located in Chicago, Illinois. Its two largest plants are located in Wichita, Kansas and Everett, near Seattle where it was created in 1916 by William E Boeing. (Boeing, 2013) Today, the company employed 171 700 employees, (hugely unionized labor force), the actual CEO is W James Mc Nerney. According to Yahoo finance, in 2012, the firm ranks third in sales of military equipment on the global market. It is the second maker of large commercial jets behind Airbus and the second defense contractor behind Lockheed Martin” (finance, 2013) It’s a public listed company traded on the New York Stock Exchange it’s a component of Down Jones and S&P 500. The company stock ticker symbol is BA. According to the income statement of last year the company generated revenue worth 68 735 billion


References: Boeing Company http://www.boeing.com/companyoffices/aboutus/brief.html Global airlines industry http://www.prlog.org/10198852-the-global-airline-industry-will-reach-value-of-711-billion-in-2012-forecasts-newreport.html Deloitte outlook http://www.deloitte.com/assets/DcomUnitedStates/Local%20Assets/Documents/AD/us_ad_GlobalAD_2010_PerformanceWrapup_07062011.pdf Fow business News http://www.foxbusiness.com/industries/2012/07/10/boeing-forecasts-24-trillion-commercial-aviation-industry/ Value line http://www.valueline.com/Stocks/Industry_Report.aspx?id=7175 Market watch http://www.marketwatch.com/investing/stock/ead?countrycode=fr Bloomberg http://www.bloomberg.com/quote/EADS:IX Guru Focus http://www.gurufocus.com/term/Shares%20Outstanding/BA/Total%252BShares%252BOutstanding/Boeing%2BCo Ft http://www.ft.com/intl/companies Alpha http://seekingalpha.com/article/244271-boeing-free-cash-flow-analysis Wiki wealth http://www.wikiwealth.com/discounted-cash-flow-analysis:ba Businessweek Dream liner : http://business.time.com/2013/01/17/is-the-dreamliner-becoming-a-financial-nightmare-forboeing/#ixzz2JCRD2XIf Alpha http://seekingalpha.com/article/1125181-boeing-still-fairly-valued-despite-787-concerns Canada business http://www.canadabusiness.ca/eng/page/2725/ Chart company http://ycharts.com/companies/BA/book_value_per_share Alpha http://seekingalpha.com/article/646261-boeing-profitability-analysis Global Mail http://www.theglobeandmail.com/globe-investor/inside-the-market/buy-boeing-not-yet/article7532178/ Finance http://www.qfinance.com/asset-management-checklists/using-shareholder-value-analysis http://247wallst.com/2013/01/22/an-underperforming-share-price-another-gift-from-boeing-ceo-jim-mcnerney/ Money morning http://moneymorning.com/2013/01/21/dont-get-suckered-by-the-boeing-media-frenzy/ Dividends http://investing.money.msn.com/investments/key-ratios?symbol=BA& New York times, Third quarter result, http://www.nytimes.com/2012/10/25/business/boeing-posts-better-than-expected-3rd-quarter-profits.html?_r=0
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