Model Airplanes

Alcoa Inc (AA), the world’s largest aluminum smelter and manufacturer just announced it has purchased Tital, a privately held German aerospace parts maker.

No price was disclosed for the purchase, but it is known that Tital had revenue of $96 million last year.

Considering Alcoa has a market cap of $17 billion, this purchase isn’t significant because of its size but more for the sector AA chose to invest in at this point. Tital uses aluminum for its high-performance, precision parts, which is a much higher margin business and somewhat distanced from the pure play commodity metals business that represents a majority of Alcoa’s business model.

Beyond Aluminum Cans

This suggests that Alcoa is looking to hedge some of its revenue outside the commodities sector as global growth slows. And given its completion of a $2.8 billion purchase of British jet engine manufacturer Firth Rixon, it looks like Alcoa is looking for strategic purchases focused on higher margin businesses that rely on lightweight metals in their processes.

Alcoa remains an A-rated Porfolio Grader “buy” and is a bedrock pick for any portfolio. What’s more, there’s a good chance that AA stock is oversold here and has some upside potential even in these depressed commodities markets.

• 3 High-Yield REIT Plays to Buy Into

Bear in mind, increased demand from automakers — Ford’s (F) new flagship F-150 pick-up truck

Article source: http://investorplace.com/2014/12/alcoa-firing-margins/

Boeing engineers and mechanics are scrambling to meet an already stretched-out schedule for the first flight of the 767 jet that will become the Air Force’s new KC-46 refueling tanker.

The first prototype plane, a modified commercial aircraft that lacks the refueling systems to make it a tanker, is now expected to fly just days before year end — six months later than projected last January.

And the cost of the effort is mounting steeply for Boeing, which is responsible for cost overruns above a contract ceiling of $4.9 billion in this initial development phase.

The government’s latest projection for the cost of the tanker’s development has ballooned to $1.5 billion above that contract ceiling, Brig. Gen. Duke Richardson, who heads the Air Force tanker program, said Monday.

The Air Force’s previous estimate had been for a $1 billion overrun.

Richardson said in an interview that the new estimate is based on Boeing’s performance on the work completed thus far, factors in manufacturing delays due to wiring issues this year, and potential risks ahead, including possible surprises once flight tests begin.

Boeing spokesman Chick Ramey declined to comment on the Air Force’s cost figure. He said the tanker team is “aggressively working our plans to mitigate risk and lower costs.”

He noted that because it’s a fixed-price contract, “there won’t be any additional costs to the U.S. government.”

Two Boeing insiders with knowledge of the program said the tanker team in Everett is working feverishly to resolve remaining systems problems and is under orders to prep the first plane “with

Article source: http://seattletimes.com/html/businesstechnology/2025243669_boeingtankerxml.html?cmpid=2628

Boeing engineers and mechanics are scrambling to meet an already stretched-out schedule and get the 767-based platform for the Air Force’s new KC-46 refueling tanker into the air by year end, with an internal target date of Dec. 27.

That’s six months later than projected at the beginning of this year.

And the cost of the effort is mounting steeply for Boeing, which is responsible for cost overruns above a contract ceiling of $4.9 billion in this initial development phase.

The goverment’s latest projection for the cost of tanker development has ballooned to $1.5 billion above that contract ceiling, Brig. General Duke Richardson, who heads the Air Force tanker program, said Monday.

The Air Force’s previous estimate had been for a $1 billion overrun.

Richardson said in an interview that the new estimate is based on Boeing’s performance on the work completed thus far, and factors in manufacturing delays due to wiring issues this year as well as potential risks ahead, including possible surprises once flight tests begin.

Boeing spokesman Chick Ramey declined to comment on the Air Force’s cost figure. He said the tanker team is “aggressively working our plans to mitigate risk and lower costs.”

He noted that because it’s a fixed-price contract, “there won’t be any additional costs to the U.S. government.”

Two Boeing insiders with knowledge of the program said the tanker team in Everett is working feverishly to resolve remaining systems problems and is under orders to prep the first plane “with the minimum capability to make it fly.”

Richardson indicated

Article source: http://www.military.com/daily-news/2014/12/16/air-force-boeing-cost-overrun-on-tanker-project-jumps-to-15-b.html

Boeing engineers and mechanics are scrambling to meet an already stretched-out schedule and get the 767-based platform for the Air Force’s new KC-46 refueling tanker into the air by year end, with an internal target date of Dec. 27.

That’s six months later than projected at the beginning of this year.

And the cost of the effort is mounting steeply for Boeing, which is responsible for cost overruns above a contract ceiling of $4.9 billion in this initial development phase.

The goverment’s latest projection for the cost of tanker development has ballooned to $1.5 billion above that contract ceiling, Brig. General Duke Richardson, who heads the Air Force tanker program, said Monday.

The Air Force’s previous estimate had been for a $1 billion overrun.

Richardson said in an interview that the new estimate is based on Boeing’s performance on the work completed thus far, and factors in manufacturing delays due to wiring issues this year as well as potential risks ahead, including possible surprises once flight tests begin.

Boeing spokesman Chick Ramey declined to comment on the Air Force’s cost figure. He said the tanker team is “aggressively working our plans to mitigate risk and lower costs.”

He noted that because it’s a fixed-price contract, “there won’t be any additional costs to the U.S. government.”

Two Boeing insiders with knowledge of the program said the tanker team in Everett is working feverishly to resolve remaining systems problems and is under orders to prep the first plane “with the minimum capability

Article source: http://seattletimes.com/html/businesstechnology/2025243669_boeingtankerxml.html