Thursday, May 22, 2014

How Boeing's Business is Changing

The Boeing Company  gave a mixed set of earnings recently. Its results perfectly highlighted how its internal operations are adjusting to changes in end demand. Simply put, for a variety of reasons, the defense market looks set to go through a sustained period of historically weak demand, while the commercial aerospace sector is seeing a stronger than usual cyclical recovery. Naturally, Boeing isn't alone in having to adjust, as companies like Honeywell International  share the same industry dynamics. With that said, how is Boeing's business changing? In addition, how should Fools measure the company's progress?

Commercial aerospace good, defense bad
It's no secret that defense spending is being pressured by public spending constraints, and particularly with large-scale military hardware.