Boeing prepares to take on Airbus

Article Excerpt

BOEING CO. $356 (New York symbol BA; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 591.1 million; Market cap: $210.4 billion; Price-to-sales ratio: 2.2; Dividend yield: 2.1%; TSINetwork Rating: Above Average; www.boeing.com) has agreed to form a joint venture with Brazilian aircraft maker Embraer SA (New York symbol ERJ). This new business will mainly focus on production of Embraer’s passenger jet operations, whose planes carry between 70 and 100 passengers. Those planes should help Boeing better compete with Europe’s Airbus SE. That firm recently acquired 50.01% of Bombardier’s new CSeries (now called A220) airliner program. Boeing will pay $3.8 billion for 80% of this venture. Embraer has the right to force Boeing to buy the remaining 20% over the next 10 years. The partners expect to complete the transaction by the end of 2019. Boeing is a hold. hold…

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