S&P Global Ratings lowered its long-term issuer credit rating on Boeing, due to uncertainty about when the timing of  737 MAX jetliner’s return to service. S&P downgraded its rating on Boeing to A-minus from A, and also lowered the short-term rating to A-2 from A-1.The rating agency cited uncertainty over when the 737 MAX will return to service, the risk to the supply chain from the planned production halt, and possible long-term impact to Boeing's competitive position as factors behind the downgrade. In March,  the 737 MAX  was grounded following two fatal crashes.

General Electric got a price target hike and rating upgrade from UBS analysts, who are optimistic about the conglomerate’s ongoing turnaround under CEO Larry Culp. UBS analyst Markus Mittermaier raised his rating on GE shares to "buy" from "hold", citing the group's balance sheet improvements that he expects would  bolster cash flows in the coming year.Culp has targeted asset sales of around $38 billion to take care of both the company's longer-term debt profile and its underfunded pension liabilities.

Raytheon Company beat both earnings and revenue expectations for third quarter, with most of its business segments experiencing positive growth. The U.S. defense contractor and industrial corporation’s  third-quarter 2019 earnings of $3.08 per share from continuing operations exceeded analysts’ expectation of $2.85 (the Zacks Consensus Estimate).As of the end of third-quarter 2019, total backlog was $44.61 billion, +3.5% higher from the previous quarter’s figure. The company’s operating income of $1,206 million rose +1.9% year-over-year. Raytheon’s sales from Integrated Defense Systems segment increased +18% year-over-year, on the back of higher net sales from an international air and missile defense system program.

Space System segment had +5% higher sales – particularly on the back of government satellite programs, Global Positioning System (GPS) III ,  strategic and missile defense programs.On the other hand, Rotary & Mission Systems experienced a -4% year-over-year decline in sales. As of Sep 29, 2019, Lockheed had $137.4 billion in the backlog, up +0.5% from $136.7 billion at the end of second quarter 2019. In the third quarter, the company paid dividends worth $621 million to its shareholders.

It has invested about $1 billion to create reusable human spaceflight systems.Virgin Galactic is apparently geared towards becoming the first company to make space tourism a reality.  In July, Virgin Galactic said that it would go public by merging with the blank-check company Social Capital Hedosophia Holdings. Boeing said that it would invest in return for new Virgin Galactic shares, and its investment is conditioned on the public trading transaction closing (expected to occur Q4 of this year).

The company is expecting revenue for the quarter to range between $140 million to $150 million, compared to analysts’ prediction of $162.6 million. For the fiscal full-year, American Outdoor’s earnings forecast is in the range of 70 cents to 78 cents a share – again below analysts’ expectation of 82 cents a share.The company’s full-year revenue guidance is a range of $630 million to $650 million, compared to analysts’ forecast of $644.4 million

According to Markopolos, GE’s insurance unit would need an $18.5 billion boost to its reserves.His report also mentions that GE’s accounting irregularities would amount to around $38 billion – which is around 40% of the company’s market cap. However, responding to Markopolos’ allegations at GE, Culp said in a statement, “GE will always take any allegation of financial misconduct seriously.

Raytheon reported second-quarter results that exceeded analysts’ estimates.The defense contractor company also boosted its full-year guidance. The company’s net income came in at $817 million, or $2.92 a share – higher than analysts’ expectations of $2.64 a share (based on FactSet poll of analysts). Revenue increased +8.1% year-over-year to $7.16 billion, also beating analysts’ estimate of $7.04 billion. Raytheon lifted its full-year earnings guidance to  $11.70 a share, compared to its previous projection of $11.60.  It also raised its full-year net sales outlook to $29.3 billion from $29.1 billion. Raytheon’s CEO Thomas A. Kennedy said the company’s merger plans with the United Technologies Corporation "is progressing well”.

J.P.Morgan analyst Stephen Tusa is sticking to his guns when it comes to General Electric, despite getting “questions and pushback” from his skepticism of GE’s announcement at the Paris Air Show last week.

The U.S. Federal Aviation Administration says Boeing Co’s more than 300 of the grounded 737 MAX and the prior generation 737 may contain improperly manufactured parts and that the agency will require these parts to be quickly replaced. Up to 148 of the part known as a leading-edge slat track that was manufactured by a Boeing supplier are affected, covering 179 MAX and 133 NG aircraft worldwide.The tracks guide the slats and are built into the wing. In a statement issued after the FAA announcement, Boeing said it has not been informed of any in-service issues related to this batch of slat tracks.

American multinational conglomerate, General Electric’s French head Hugh Bailey in a media interview published on Sunday in France’s Journal Du Dimanche announced that the company is planning to cut jobs in the range of thousands at its eastern France factory but would not close the factory down. According to the company, the site would continue to remain GE Power’s number one industrial site in Europe, but it would look to explore alternative options for the plant as Belfort's sales of gas turbines halved between 2017 and 2018 as the group struggled to remain competitive. Currently, the Belfort plant handles gas, steam, nuclear and hydro technology but the company is looking into different alternatives like building aeronautical parts.Further this move, according to the company, is aimed at making its operations more resourceful in France in response to a dwindling market for power plants. French industrial group, Alstom, was Belfort’s biggest employer until 2014, but then it

Declaring a national emergency because of tensions with Iran, President swept aside objections from Congress on Friday to complete the sale of over $8B worth of weapons to Saudi Arabia, the UAE and Jordan.

A European pilots’ group Thursday urged the region’s aviation regulator to conduct its own thorough and independent review of the Boeing 737 Max before allowing the planes to fly again.

General Dynamics shares jumped +2% Monday, following an upgrade by Goldman Sachs analysts. Analysts at Goldman Sachs raised their rating on the aerospace & defense company's stock to buy from neutral.A decline in General Dynamics stock’s valuation relative to its peers, and strengthening margins on its Gulfstream private jet line were cited as factors behind the analysts’ optimism. The analysts reiterated their per-share price target of $204 – which represents a 23% upside from the stock's previous closing price of $166.37.   

General Electric (GE -0.5%) expects "very significant negative cash flow" from its core power plant business this year and does not anticipate large improvement in the unit's cash flow margins for at least three years, CFO Jamie Miller said today at a Goldman Sachs investor conference.

Canada is softening the rules of its multi billion-dollar competition for 88 new fighter jets to allow Lockheed Martin Corp to submit a bid, following a complaint by Washington, a Canadian government source said on Thursday. Read More...

General Electric said it increased profit and lost less cash than expected in the first quarter. Profit from continuing operations more than tripled as sales rose in GE’s aviation, oil and gas, and healthcare units.Negative cash flow from GE’s industrial business was $1.2 billion, much better than the $2.16-billion outflow that analysts were expecting.  On an adjusted basis, GE earned 14 cents per share.

The New York Times launched an investigation into a Boeing manufacturing facility at North Charleston, South Carolina -- and the findings are alarming.Following interviews with dozens of current and past employees, as well as reviewing hundreds of corporate documents, the report reveals that this manufacturing facility has been prioritizing production speed over quality -- thereby creating potential safety hazards. Boeing workers had filed numerous complaints with the federal government regarding poor manufacturing processes, tools and debris being left on plane, installation of faulty parts in planes at the facility, undertaking test flights with engine or tail compromised, and pressure on the employees not report regulatory violations to authorities. Boeing has denied such allegations claiming that the facility is committed to producing top-quality Dreamliners.

Recently, the company transitioned F-35 suppliers to long-term Performance Based Logistics (PBL) contracts and 12 Master Repair Agreements (MRA) to enhance repair capacity and speed. Replacing annual contracts, the new multi-year PBLs allow companies to make long term investments and actions towards improved efficiency and cost reduction.At present, the PBLs cover several contracts with BAE Systems, Northrop Grumman (NOC) and Collins Elbit Vision Systems; and the MRAs cover contracts with 12 separate suppliers including companies like Honeywell (HON), General Electric (GE) and Eaton (ETN). Not only are the initial multi-year contracts delivering positive results, the newer production aircraft are averaging more than 60% mission capable rates and is approaching the company’s 80% goal which amounts to reducing costs at $25,000 cost per flight hour by 2025.

General Electric (NYSE:GE) agrees to resolve claims involving subprime residential mortgage loans originated by its WMC Mortgage subsidiary before the financial crisis. Read More...