philidor
in service - 6 years
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Post by philidor on Feb 12, 2016 12:45:33 GMT 1
Boeing stock was trading at $158 four months ago, now it's down to $108. Part of that is the influence of general market conditions. Concerns about a possible aircraft construction downturn compound the effect. Doubts about Boeing are another factor.
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s543
in service - 2 years
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Post by s543 on Feb 12, 2016 14:31:33 GMT 1
SEC enquiry always brings suspicion and the shares go down. ....
And we do know that any smaller company would not be allowed to live with such a way of accounting the deferred costs.
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philidor
in service - 6 years
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Post by philidor on Feb 12, 2016 16:16:47 GMT 1
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philidor
in service - 6 years
Posts: 8,950
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Post by philidor on Jul 22, 2016 0:14:19 GMT 1
Ahead of its Q2 financial results announcement on July 27th, Boeing disclosed that it is taking major one-off charges on the 787, 748 and KC 46 programmes, for a total 2.78 billion pretax or 2.1 billion after tax. As regards the 787 programme, Boeing is writing off LN 4 and LN 5. As a consequence, the costs associated with these frames are moved from 787 programme inventory to research and development, generating a non-cash after-tax charge of $847 million. As regards the 748 programme, Boeing acknowledges the fact that the market does not allow the production rate to be increased in 2019 as previously planned, and takes an $814 million after-tax charge. Boeing will also recognize a $393 million after-tax charge on the KC-46 Tanker program. This charge reflects higher costs associated with previously announced program schedule and technical challenges. investors.boeing.com/investors/investor-news/press-release-details/2016/Boeing-to-Recognize-Cost-Reclassification-and-Charges-to-Second-Quarter-Earnings/default.aspxThis is a day of reckoning, but in my opinion it is probably only a first step. We'll have a better grasp of the financial situation of the company on July 27th. EDIT : replaced 'millions' with 'billions' in line 2.
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someone
in service - 1 year
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Post by someone on Jul 22, 2016 7:35:27 GMT 1
This write down should have been done a long time ago
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XWB
in service - 11 years
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Post by XWB on Jul 22, 2016 9:21:04 GMT 1
This write down should have been done a long time ago Jim McNerney was a big fan of deferred costs.
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s543
in service - 2 years
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Post by s543 on Aug 4, 2016 8:39:34 GMT 1
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mjoelnir
in service - 2 years
Posts: 4,089
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Post by mjoelnir on Aug 4, 2016 12:04:10 GMT 1
Ahead of its Q2 financial results announcement on July 27th, Boeing disclosed that it is taking major one-off charges on the 787, 748 and KC 46 programmes, for a total 2.78 billion pretax or 2.1 billion after tax. As regards the 787 programme, Boeing is writing off LN 4 and LN 5. As a consequence, the costs associated with these frames are moved from 787 programme inventory to research and development, generating a non-cash after-tax charge of $847 million. As regards the 748 programme, Boeing acknowledges the fact that the market does not allow the production rate to be increased in 2019 as previously planned, and takes an $814 million after-tax charge. Boeing will also recognize a $393 million after-tax charge on the KC-46 Tanker program. This charge reflects higher costs associated with previously announced program schedule and technical challenges. investors.boeing.com/investors/investor-news/press-release-details/2016/Boeing-to-Recognize-Cost-Reclassification-and-Charges-to-Second-Quarter-Earnings/default.aspxThis is a day of reckoning, but in my opinion it is probably only a first step. We'll have a better grasp of the financial situation of the company on July 27th. EDIT : replaced 'millions' with 'billions' in line 2. The cost of LN 4 and 5 had never been a part of the deferred cost. They were booked in work in progress. The moment they would have been sold, the difference between real and and average cost would have been booked on deferred cost. One is left wondering what other alligators still have to crawl out of the swamp of the 787 mess.
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s543
in service - 2 years
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Post by s543 on Aug 4, 2016 15:25:34 GMT 1
The cost of LN 4 and 5 had never been a part of the deferred cost. They were booked in work in progress. The moment they would have been sold, the difference between real and and average cost would have been booked on deferred cost. One is left wondering what other alligators still have to crawl out of the swamp of the 787 mess. My guess is that for what is left 30 bn would not be enough. Leehems guess is pretty similar - they believe that 30 bn might be enough but not probable. Leeham is pretty sure that all the deferred costs could never ever be recovered - how ever big the production will be ! Here we have seen that just prototypes 4+5 were 0,5bn EACH !!!! We do have (1)+2+3 + trouble teens where is probably something over 0,25bn each. Than what was the cost of rework on those sold ? Than we know there is probably something like 50mil. on each 788 sold. We can continue.
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s543
in service - 2 years
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Post by s543 on Aug 30, 2016 10:35:08 GMT 1
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