Boeing (NYSE:BA) – The two major divisions of Boeing operations are undergoing changes and challenges: Defense, Space & Security is to be streamlined, and order cancellations have been announced for Boeing Commercial Airplanes.
Boeing defense operations are located in Washington State and, in order to streamline the business, approximately 2,000 of its 5,200 employees will be shifted to its other commercial centres in Oklahoma City and St. Louis Puget Sound, Washington State, and to Jacksonville, Fla. and Patuxent River, Md.
Boeing Defense, Space & Security is a $33 billion business with 56,000 employees worldwide. Estimated to take three years, the consolidation will affect support systems only, with production of the P-8 maritime patrol aircraft and KC-46A Tanker buoying the order book, and these programmes not affected.
Boeing Commercial Airplanes in the meantime, have received a $5 billion cancellation for the 33 planes originally ordered by Air Berlin. However, this is only a fraction of their current and future schedule, with record orders standing at over 1,000 planes every year for the past three years, one of the latest orders being from BOC Aviation for 50 737 MAX 8s, 30 Next-Generation 737-800s and two 777-300ERs (Extended Range), valued at $8.8 billion.
CFDs on Boeing (BA) stocks are traded on STOCK.com