Study of the Boeing Company
Incorporated in 1934 in Delaware, the Boe
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Incorporated in 1934 in Delaware, the Boeing Company is headquartered in Seattle and is the worldÆs largest producer of commercial aircraft. In addition to producing commercial jets, the company also manufactures military aircraft and missiles. In August 1993, the company was chosen as the prime contractor for the new space station program by NASA. Dividends have been paid by the company since 1942, and the company adopted a ôpoison pillö stock purchase right in 1987 to help prevent it being the target of hostile takeover attempts.During 1992, commercial transportation contributed 80 percent to revenue and 90 percent to profit; defense and space contributed 18 percent to revenue and 9 percent to profit; other industry segments contributed 2 percent to revenues and 1 percent to profit. The company produces some of the best known and most often purchased aircraft in the world, including the 707, 727, 737, 747, 757, 767 and 777 planes. The 707 and 727 planes were the ôworkhorsesö of the American airline fleets during the days of regulation; the 737 is the best selling aircraft ever produced. As of June 30, 1993, the company had delivered nearly 7400 aircraft and had a backlog for an additional 1300. The following chart illustrates the backlog and delivery schedule for the companyÆs product line:
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tion despite challenges from Airbus, a consortium of European manufacturers supported by European governments.
Social Responsibility
BoeingÆs social responsibility begins with its recycling program, which a number of companies have introduced, and includes its commitment to helping employees that face layoffs as a result in the downturn in the aircraft industry as a whole in recent years. The company has demonstrated social responsibility in its dealing with employees with regard to training and outplacement, as well (see below).
Finance Information
BoeingÆs sales increased at an annual rate of 14.5 percent for the past five years, and 11.9 percent for the previous ten years. It is estimated that the companyÆs sales will decrease 2.5 percent when 1990 - 1992 is compared to 1996 - 1998.
The company has had three 3-2 stock splits during the past ten years (1985, 1989 and 1990). The following charts, which are presented on logarithmic scales in order to show rates of change, illustrate the companyÆs sales, earnings per share and price history for the 1984 - 1993 period:
The company has maintained a relatively healthy current ratio during recent years (ranging from a low of 1.2 in 1990 to a high of 1.6 in 1983),
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