Boeing - Michael Samuels 11/20/08 ACCY 110 Jones Financial...

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Michael Samuels 11/20/08 ACCY 110 Jones Financial Analysis Paper Boeing Boeing, the world’s leading aerospace company and largest manufacturer of commercial and military jetliners combined, experienced record revenues in the year 2007. Boeing provides products and services to airlines and US and armed services around the world. Headquartered in Chicago, Boeing employs over 160,000 people across the world. Boeing, the largest global airline manufacturer based on revenue, is the largest exporter in the United States. In 2007, increased productivity and performance in existing programs, along with growing demand in the airline industry helped revenues reach its all time high of $66,387 million, a 7.89% growth rate over the year prior. Boeing also set company records for commercial airline orders, which for the third straight year were over 1,000 total sales allowing for a compound growth rate of revenues to reach 11.27% for both the product and service sectors combined. Boeing is focused on continuing its gains in revenue growth and is working to maintain that status through research and development to stay competitive in an ever growing “green” world. The forecasted revenue of $73,868 for the year 2008 seems like an appropriate estimate considering the previously mentioned compound growth rate. The foresight and focus towards continued innovation of its products and services including the advent of the new 787 series airplane that debuted at the beginning of the 2007 fiscal year could be a factor when projecting future demand. However, in a relatively mature marketplace,
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even new airplanes can only do so much for demand, and but in terms of price, most of Boeing’s customers are very large corporations or governments that have little to no price sensitivity, so swings in the macro economy don’t harm Boeing as much as other companies. High fuel costs and growing concerns over the environment also motivates Boeing to maintain its status as the leading aerospace company ahead of main competitor, Airbus. A shift towards sustainable bio fuels and fuel cells appear to be on the agenda in coming years and could be the catalyst for continued growing revenues. Along with commercial airlines, the world defense market is also changing and
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This note was uploaded on 10/20/2010 for the course ACCY 110 taught by Professor Christopherjones during the Spring '10 term at GWU.

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Boeing - Michael Samuels 11/20/08 ACCY 110 Jones Financial...

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