Boeing's jet orders top record in 2005
NEW YORK (XFNews) - Boeing Co. said Thursday it sold more than 1,000 jetliners in 2005, almost four times what the world's largest aerospace company sold last year as demand from foreign airlines heated up.
The 1,002 commercial airplane net orders in 2005 were well above a previous record in 1988 when the orders included planes made by the former McDonnell Douglas Co., which Boeing acquired.
"It certainly presages the return to No. 1 position in deliveries sometime in the future if they keep this up," said Paul Nisbet, aerospace analyst at JSA Research.
The tally is almost certainly ahead of rival Airbus, which will release its numbers later this month, and dwarfs last year's 272 orders and 249 in 2003.
The orders, from 72 customers, led investors to drive up the share price in the closing days of 2005 to an intraday record $72.40 on Dec. 27.
JSA Research's Nisbet said that 2006's pace of orders will be slower than 2005, when placing orders to get planes delivered before rivals can be a powerful driver of sales.
"Once the rush starts, and we've seen this in the past, you'll find all the airlines jumping in trying to get delivery slots in the fairly near term. If you waited until this year, you obviously are going to have to wait a lot longer than if you'd jumped in last year."
In Thursday trading, shares of Boeing, a component of the Dow Jones Industrial Average, fell 1.4% to $70.20. Bank of America analysts downgraded the stock Thursday to neutral from buy.
"We believe there are still more orders to come in 2006 due to continued strength in the market," wrote Jefferies & Co. analyst Howard Rubel in a research note. "Notable competitions include Singapore, ANA, British Airways, KLM, Emirates, and Qatar."
In 2004, Boeing obtained just 272 net orders.
Boeing also delivered its final B757 in 2005, ending a 23-year model run of more than 1,000 airplanes.
The Chicago-headquartered company's impact on the U.S. economy remains considerable. The latest factory order data for November showed a 16% rise in transportation equipment orders.