Industry on the March:Alcoa,Boeing and Airbus

Alcoa achieved a double beat in its Q4 earnings report,scoring a revenue beat of 6.38 billion versus an estimate of 6.04;and an earnings per share beat of 0.33 versus the 0.29 estimate.CEO Klaus Kleinfeld notes that Q4 is capping off a really wonderful transformation.We have three groups,and all are performing very,very well.Costs are coming down in our commodity business and improving our profitability there.We look at our end markets and what is happening regionally,and I think it has the potential o stay the same for 2015.
Low oil prices could offer a .4 to a .8 GDP gain.We are predicting another seven percent rise in demand for 2015.There is a lot of disconnect.For us,we can't control the outside world.We make sure we've had a very competitive commodity business.Thirty-one percent of our smelting business was closed or sold.There is the value-add energy;automotive innovation in the first all-aluminum vehicle.We are very confident in aerospace.Look at the order volumes that Boeing and Airbus have been generating in 2014,and look at the auto backlog:eight yers of an increased 2014 production.*
Boeing is sold out of 787 Dreamliners through 2020.*
David Zervos,a managing director at Jefferies&Co,adds that the dollar is a very aggressively owned asset right now.People are using the S&P 500 as a kind of hedge against declining oil prices.They'd better sell something.*
Alcoa(AA),Boeing(BA),Airbus Group NV ADR(EADSY),iShares Core S&P 500 ETF(IVV)

ANA Resumes Dreamliner Service;Ford Australia Closes Plants

Boeing's major customer for the new 787 Dreamliner has resumed flights of the aircraft after a four month suspension for safety reasons.All Nippon Airways completed the first of five May flights with the 787 Sunday after extensive battery modifications and testing.Full service will resume on June 1.
United and Ethiopian Airlines had already restarted Dreamliner service.
The ultra-modern aircraft was grounded in January after both ANA and Japan Airlines 787s experienced battery fires.ANA owns the most 787s of any airline:16,with 36 more on order.
All Nippon CEO Osamu Shinobe said the airline did its own testing in addition to the FAA's evaluation of the modifications.It is a game-changing aircraft in terms of the environment,efficiency and passenger comfort,Mr Shinobe pointed out.
Ford Australia is closing its two manufacturing plants in Victoria state,citing high costs,declining sales and a strong Australian dollar.The plants will be shuttered in October 2016,resulting in the loss of 1200 jobs.Ford has been in Australia since 1925.
Ford Australia CEO Bob Graziano said manufacturing is not viable for Ford in Australia,where its costs are double those in Europe,and nearly four times costs in Asia.Ford Australia has lost 581 million dollars/A 600 million in the last five years.
Australians have been turning to compact cars by overseas carmakers such as Mazda and Hyundai recently.
As well,the strong Australian dollar makes it hard for manufacturers in the country to compete globally,at a time when the Labour government is looking to manufacturing to take up some of the slack from falling mining revenue.
All Nippon Airways(Tokyo:9202),Ford Motor Company(F),Boeing(BA)

Boston Welcomes Inaugural Dreamliner Flight To U.S.

A new era in commercial aviation began Sunday morning with the arrival of Japan Airlines Flight 8 at Boston's Logan International Airport.The non-stop flight from Narita Airport in Tokyo was the first commercial flight of the Boeing 787 Dreamliner to the United States.Touching down at 8:37 am Pacific,the flight surely delighted plane spotters in the Boston area who were able to catch a glimpse of aviation history. Rival All Nippon Airways had received the first deliveries of Dreamliners,but hasn't initiated its U.S. 787 flights yet.ANA has been flying the 787 in Japan,as well as to Europe and elsewhere in Asia. JAL will fly the 787 to Boston and back four times a week until June,when the service goes daily.It is a 12-13 hour flight. Boeing has more than 800 orders on the books for the new,lightweight aircraft-the first commercial jet to incorporate composite materials into the majority of its construction.Technicians from both the U.S. and Japan inspected the undercarriage of the JAL Dreamliner together upon its arrival at Logan. Boeing(BA)

Dreamliner Survives Weather Scare

A Boeing 787 Dreamliner was struck by lightning over Puget Sound,Washington last month,according to program manager Scott Fancher.The aircraft was on a test flight at the time of the strike.The plane's systems,fuselage and wings checked out O.K. following the strike.A fifth test 787 recently made its maiden flight from Paine Field in Everett,Washington.The test pilot described its performance as "smooth and excellent."
The Dreamliner is now two and a half years behind schedule.The first airliner built from composite materials,the fuel-efficient jet will soon be in production,however, at plants worldwide.Extensive testing is required for the 787 to obtain FAA certification,and so far there have been no issues with the test flights.
The Dreamliner is also seen as an engine for job-creation and sustenance.

Boeing's Beautiful Moment

The attractive,two-tone airliner taxied on a dreary day last week after two years of exasperation.Not especially big,its swept-up wing tips rolling down the tarmac marked an instant of pride for American industry.After many delays,the white and blue Boeing 787 Dreamliner was finally ready for its maiden flight.Powered by two Rolls Royce engines,the replacement for the 767 had been in demand for its fuel economy.Constructed of composite materials instead of aluminum,it uses 20% less fuel than older models and,over its lifetime,will result in millions of dollars in savings.
The 787 showed a certain majestic grace as it taxied on the wet runway,taking a long time.It stopped for five minutes,as if contemplating its future,then resumed its trip.It had taken on a persona.Pausing again,it finally went with real speed,causing spray with its wheels.The takeoff was totally smooth,and its flight was indeed dreamlike,light on the wing over forested hills around Everett,Washington's Paine Field.It was flying to Boeing Field in Seattle,beginning the basic tests and system checks in quest of FAA certification.Boeing worker Kevin Hendricks said he was pretty excited;it was a pretty epic moment.He had been working on the 787 for two years.Other 787s were in production behind this one-the first of some 840 planes on order worldwide.Ten 787s have been assembled so far.Eventually,Boeing plans to produce 10 787s a month by 2012.
Boeing's suppliers have been ramping up in anticipation of full production.For them,this was an emotional day,bringing much hope to their factories.The second test flight is scheduled for December 22.