Boeing Case Analysis

The Boeing Company is a Chicago-based, $64.3 billion aerospace company with more than 165,000 employees across the United States and in 70 countries. The Boeing (Boeing) is engaged in the design, development, manufacturing, sale and support of commercial jetliners, military aircraft, satellites, missile defense, and launch systems and services. The following companies are the major competitors of The Boeing Company (DataMonitor, 2011):

BAE Systems Plc

Lockheed Martin Corporation

Northrop Grumman Corporation

Raytheon Company

EADS

Airbus S.A.S.

General Dynamics Corporation

FINANCIAL INFORMATION

The company recorded revenues of $64,306 million during FY2010, a decrease of 5.8% compared to FY2009. For FY2010, Unites states, the company's largest geographic market, accounted for 59.3% of the total revenues (Datamonitor, 2011).

REVENUE DISTRIBUTION:

Commercial airplanes: (49.3% of the total revenues during FY2010)

Boeing Military Aircraft (22.1%)

Network and space systems (14.6%);

Global services and support (12.8%);

Boeing capital corporation (1%); and

Other (0.2%)

THE CURRENT MARKET OUTLOOK:

The industry forecast by Boeing for 2011 expects the delivery of 33,500 new air planes for next 20 years of value more than $4.0 trillion. Boeing also expects that after the decline of 2% air traffic growth in 2009, traffic increased to 8% in 2010.

This indicates growth for Boeing in spite of increasing fuel costs and political turmoil in Middle East and North Africa, Boeing is anticipating profits and believes in overcoming all the challenges from economic crisis.

Many factors that are proving beneficial for Boeing's financial condition are:

Rapidly developing airline industry in China and other emerging economies drive the demands for low cost, single aisle aircrafts that contributes to majority of deliveries over next 20 years and about 48 percent of