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Airlines

Aerospace and Defense Companies Report Strong Earnings and Win Major Contracts

Strategic Insights

— 2 min read

Air India has ordered 50 jets from Boeing, including 27 787 Dreamliners, in a deal worth $6.9 billion. This is just one day after Boeing secured a contract with Air Canada to supply up to 96 jets. Meanwhile, Lockheed Martin has raised its 2005 sales outlook to $36.5-$38 billion and boosted its profit outlook to $3.35-$3.55. The company reported a first-quarter profit of 83 cents a share, a 27.7% increase over the same period last year. In the gaming industry, Penn National Gaming's profit rose to 31 cents a share, while Riviera Holdings reported a 14-fold increase in earnings.

Key Takeaways:

  • Boeing has secured 244 orders for the 787 Dreamliner, with the Air India order being one of the largest.
  • Lockheed Martin has raised its 2005 sales outlook to $36.5-$38 billion and boosted its profit outlook to $3.35-$3.55.
  • Lockheed Martin reported a first-quarter profit of 83 cents a share, a 27.7% increase over the same period last year.
  • Penn National Gaming's profit rose to 31 cents a share, a 19% increase from the same period last year.
  • Riviera Holdings reported a 14-fold increase in earnings, with a first-quarter EPS ex items of 18 cents a share.
  • Boeing is winning contracts from big Airbus customers, including Air Canada and now Air India.
  • Lockheed Martin reported a first-quarter sales rise of 1.7% to $8.49 billion.
  • Penn National Gaming is expected to buy rival Argosy Gaming in Q3 for $2.2 billion, making it the No. 3 U.S. casino firm.

Statistics:

  • 244: number of ordered 787 Dreamliners secured by Boeing
  • $6.9 billion: value of the Air India order
  • 27: number of 787 Dreamliners ordered by Air India
  • $36.5-$38 billion: revised 2005 sales outlook by Lockheed Martin
  • $3.35-$3.55: revised 2005 profit outlook by Lockheed Martin
  • 83 cents: first-quarter profit per share by Lockheed Martin
  • 27.7%: increase in profit from Q1 2004 to Q1 2005 for Lockheed Martin
  • $8.49 billion: first-quarter sales by Lockheed Martin
  • 1.7%: increase in sales from Q1 2004 to Q1 2005 for Lockheed Martin
  • 19%: increase in profit from Q1 2004 to Q1 2005 for Penn National Gaming
  • 18 cents: first-quarter EPS ex items by Riviera Holdings
  • 14-fold: increase in earnings from Q1 2004 to Q1 2005 for Riviera Holdings
  • $2.2 billion: value of the expected acquisition of Argosy Gaming by Penn National Gaming

Sources:

  • "Boeing wins 50 jet Air India deal" (Source: Bloomberg)
  • "Lockheed Martin lifts '05 views" (Source: Bloomberg)
  • "Gaming: Penn lifts Q1 19%, upbeat on Q2" (Source: Bloomberg)
  • "Riviera Holdings reported Q1 EPS ex items of 18 cents a share" (Source: Bloomberg)

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