FINANCIAL ANALYSIS

Financial analysis of Boeing and EADS





Executive summary

In the past few years, the global airline manufacturing industry has been in the headlines for all the mixed reasons. Under the each condition, this American iconic corporation the Boeing Company has been in news as it has undergone with some problems that surrounds the Boeing A787 project. Into a unique Boeing market segment, the A787 aircraft of Boeing was a ground breaking concept. Instead, it served as a catalyst and threatened the very existence of the Boeing Company for complete reorganization and major surgery of the corporation which starts from the top level management to the floors of the production. In the similar way the European iconic corporation the European aeronautic defense and space company has been in the limelight because of its new A380 Airbus.

In this study, what we have taken into consideration is the financial analysis and comparison of Boeing Company with its strong competitor the European aeronautic defense and Space Company. The background to the problems have been presented and studied and the financial performance has been a topic to put light on. Early in the paper, a short discussion of its financial performance for the period between 2009 to 2011 has been critically discussed. Data that has been used and collected for the access and study is also included in the paper. Also in this paper, a comparative analysis of the financial performance of two dominant players that are Boeing and the European aeronautic defense and Space Company has been thoroughly discussed. And in the end highlights in the form of recommendations for the Boeing Company and its short and long term financial direction(s) has been discussed.

Introduction

The American Airline Giant

The Boeing Company is one of the largest multinational aerospace and Defense Corporation in America. It was founded in the year 1916 in Washington. Over the years, Boeing has expanded and also merged with various companies such as Mc Donnell in the later years. In the year 2001, the corporate head quarters were moved to Chicago. The aerospace company, Boeing is made up of various multiple business units which include Boeing commercial airplanes, Boeing defense, space and security, engineering, operations and technology and the Boeing shared services group.

Boeing has more than 170,000 people all across in the United States and in other various countries. This shows that Boeing is one of the most diverse and innovative workplaces in the world. Boeing also leverages the talents and skills of hundreds of people working as suppliers for Boeing worldwide.

Boeing is one of the largest manufacturers of various kinds of commercial and military aircrafts combined. On the other hand, Boeing also manufactures various root crafts, electronic and defense systems, missiles, satellites and advanced information and communication system. Boeing is also one of the prime contractors for the international space station and is also a major provider to NASA. The company is also providing various kinds of military and commercial airline support to many of its customers. In the recent years, Boeing ...