What Was Boeing’s Orders And Deliveries Tally In August 2016?

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The Boeing Company

Boeing (NYSE:BA) managed to book 73 orders in July. However, August witnessed a much lower order inflow. The airline manufacturer received only 22 orders in total, including 19 wide bodies and 3 narrow bodies. At list price, these orders are valued at $5.6 billion in revenues, but after discounts the market value comes in closer to $4.7 billion.

In comparison to August 2015, order inflow fell by a mammoth 57%. In the first eight months of the year, the aerospace giant has managed to bag only 405 orders. In the same time period last year, Boeing had received close to 470 orders. This represents an approximate 14% decline year over ear. Unfortunately, it seems as though Boeing’s value proposition of new aircraft is not as appealing as it has been portrayed so far.

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Furthermore, in the month, the Boeing 747 suffered yet another cancellation. This is further testament to the fact that the company is not being able to sell its biggest jet due to a continually shrinking demand for big aircraft and a slumped cargo market.

In terms of deliveries, the company delivered 59 aircraft valued at approximately $4.6 billion. Deliveries fell by about 5 deliveries year over year. The split between narrow and wide body deliveries was 65:35. Lower deliveries were caused by the lower delivery volume for the Boeing 737, 777 and the 787 programs.

For FY 2016, Boeing had guided lower deliveries due to a slowing production rate on the Boeing 747 program and the transition towards the Boeing 737MAX. This explains partially why delivery volume was below the monthly average. That said, in order to reach its delivery target, the company will need to make almost 62 deliveries per month for the remainder of the year.

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment / ask questions on the comments section

2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis of Boeing

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