It’s Not looking Good For Boeing

The Boeing Company is operating in such an industry, where the strength and potential growth of the company is as important as the performance of the company itself. It’s obvious that for a company like Boeing, the market’s demand should also be high but for now that doesn’t seem to be happening. The US government has decreased its defense budget, and demand for the defense aircraft of the company is decreasing. The company’s performance now relies on its commercial business segment, as the commercial aerospace will always be in trend considering the price competitive market and the massive backlogs. The company has already received a decade orders as of now, and the commercial segment is going to bring better revenues for the company than its defense segment. The Boeing Company announced its first quarter fiscal year 2014 results on Wednesday. The results were quite strong than the company’s guidance. The company’s total backlog for the first quarter fiscal year 2014 was $440 billion which was higher than the company’s guidance itself. Boeing provided the guidance for the first quarter to be around $90.5 billion. The current level of backlog is almost 8 times greater than the company had in fiscal year 2011. The revenues of Boeing in first quarter fiscal year 2012 was $390, while in the same quarter in fiscal year 2011 it was $355 that the company has now outperformed.

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