Boeing Commercial Airplanes (BCA) expects later this morning to post a good second quarter, and we’ll wait for the final tally to decide if we should further modify ‘good’ with ‘very’. It’s the first time that’s possible to say without any major caveats since 2007. With the 787 and 747-8 finally certified amidst swelling demand for commercial aircraft, BCA can have a nice quarter for once.
The numbers don’t lie. Operating earnings for the BCA segment have plunged even as revenues have stabilized. Aircraft deliveries hit a five-year low in what was already a down-cycle in 2010, and then barely improved in 2011. This year, BCA already has reported delivering 150 aircraft in the second quarter, including 13 total 787s and 747-8s.
Although that’s a huge improvement, BCA will have to work hard to meet its full-year delivery guidance of between 35 and 42 787s. The airframer has delivered only 11 787s in the first half of the year. Meeting that delivery target is essential for BCA to begin unwinding its mountainous stockpile of 787 inventories.
|787 work in progress, including deferred production||3885||9461||12684|
|787 Supplier advances||2187||1956||1852|
|Tooling & non-recurring||1231||1447||1677|