Boeing and United Technologies have continued to amass reserves of titanium parts from a Russian producer to hedge against uncertainty surrounding international economic tensions as a result of conflict between Russian-backed separatists and the Ukrainian government.
Boeing recently released its second quarter earnings report, highlighted by a 1% rise in revenue and a 52% rise in net earnings compared to the same period last year. The Company announced earnings per share of $2.42, beating analysts’ estimates of $1.99 by a considerable margin.
This week, Bombardier Inc. unveiled plans to revamp its organizational structure as President and Chief Operating Officer of Bombardier Aerospace since 2008, Guy Hachey, stepped down. Previously organized as two separate divisions, Aerospace and Transportation, Bombardier is attempting to re-define its business with a new structure, which will include four unique business segments: Transportation, Business Aircraft, Commercial Aircraft, and Aerostructures and Engineering Services.
The biannual Farnborough Air Show was underway this week, drawing major players from the aerospace industry to the historic airfield in Hampshire, England. For manufacturers, the show offers a chance to highlight new product innovations and capabilities, while for airlines, the show is an opportunity to see new designs and place purchase orders.
Boeing released its Current Market Outlook this week for 2014 through 2023, identifying several important trends in the aerospace market over the 20-year forecast period. Most notable among these is a 3.2% growth in global GDP, driving passenger and cargo plane traffic growth 5.0% and 4.7% annually, respectively.
Boeing had a successful week, securing two major contracts and bidding on a third. The Company announced earlier this week it won a $1.9 billion award to produce 44 F/A-18 Super Hornet and EA-18G Growler aircraft for the U.S. Navy and the Australian government.
The White House this week requested $60 billion from Congress to fund military operations in Afghanistan and other global contingencies. The Pentagon is set to receive $58.5 billion through the 2015 overseas contingency operations (“OCO”) request, with an additional $1.5 billion requested through a budget bill amendment for State Department contingency funding.
The U.S. House of Representatives voted this week to block the Air Force’s plan to cut its entire A-10 fleet during deliberation on the FY2015 defense spending bill. The chamber approved the amendment, proposed by Rep. Candice Miller (R-Mich.), which would prohibit the Pentagon’s potential divestiture, retirement, transfer, storage, or cutting of any A-10 aircraft.