Could Boeing sell Jeppesen?

NoHeat

NoHeat

Final Approach
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Boeing bought Jepp back in 2000 for $1.5 billion. Today Boeing announced earnings, which were a huge loss, and it has a looming cash problem. The new CEO said in the earnings call that they now need to concentrate on its core operations. I think Jepp is not core to Boeing’s business, and Boeing could use a few billion of cash. Putting all that together, I’d guess Jepp gets shopped around. Any thoughts?
 
Jepp is now part of a newer Boeing company, Boeing Global Services. Previously, it belonged to Boeing Airplane (The Boeing Company is really 4 companies). Many of you remember the disaster of the New & Improved! VFR Charts!. Right. Even Jepp employees wouldn't use them. Jepp products now include marine as well as aviation.
To quote Investopedia,

"Apr 2, 2024 — Boeing's Commercial Airplanes unit makes the most revenue but its Global Services segment brings in the most profits."

The company's largest revenue source is its Commercial Airplanes business segment. While Commercial Airplanes bring in the most revenue, Boeing's Global Services business is the largest contributor to profits. Global Services was a bright spot, earning the company $870 million. Last year, when Boeing was still mounting a more aggressive comeback from its last 737 Max mess, services was also the only part of the company to turn a profit, according to its most recent annual report.

investors.boeing.com

Boeing Reports Fourth Quarter Results

Fourth Quarter 2023 Delivered 157 commercial airplanes and recorded 611 net orders 787 production rate at five per month; 737 production rate at 38 per month Generated $3.4 billion of operating cash flow and $3.0 billion of free cash flow (non-GAAP) Full Year 2023 Delivered 528 commercial...
investors.boeing.com investors.boeing.com

You decide.
 
The only constant in life is change. Boeing owning Jepp and ForeFlight is about as logical a Chrysler making outboard motors and General Motors making home appliances in the 70s.
 
Other than breaking things, what is Boeing's core business? What if we split off their tactical aircraft and helicopters and found an outside group to manage that, then see if they can sort out the heavy stuff on their own?
 
Boeing kind of has the inverse Midas touch, they ruin everything they touch. They bought up a bunch of defense guys as well (Autometric and the like). I don't know if having Textron buy us was any better. Boeing completely hosed up the "Future Image Architecture" which essentially was a massive government gift to them. (Everybody assumed Lockheed-Martin would have one that. Martin had built the previous satellites and Lockheed built most of the processing stuff back when they were separate companies).
Of course the NRO probably didn't do a better oversight role than the FAA. Anybody who could spell test knew that the wheels were going to come off that program.
 
The fact that Boeing makes more profit on things like JEPP vs building planes is more of a comment on its ability to build planes.

Clip4 said:
Boeing owning Jepp and ForeFlight is about as logical a Chrysler making outboard motors and General Motors making home appliances in the 70s.
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Spot on IMHO. Sell JEPP and those other things and figure out how to make and service planes again. It's not like they were selling horse whips and the automobile arrived in the market, or were making passenger trains and the plane arrived. Planes are going to be needed for quite a while.

I remember at one point Boeing was also involve in movie theater projection technology. Anyone else thinking of how GE imploded?

boeing.mediaroom.com

The Boeing Company Brings Latest Digital Cinema Technology to Moviegoers"

The Boeing Company [NYSE:BA] is making digital projection of full-length motion pictures a reality with the installation of the Boeing Digital Cinema systems in markets across the United States...
boeing.mediaroom.com boeing.mediaroom.com
 
WDD said:
The fact that Boeing makes more profit on things like JEPP vs building planes is more of a comment on its ability to build planes.


Spot on IMHO. Sell JEPP and those other things and figure out how to make and service planes again. It's not like they were selling horse whips and the automobile arrived in the market, or were making passenger trains and the plane arrived. Planes are going to be needed for quite a while.

I remember at one point Boeing was also involve in movie theater projection technology. Anyone else thinking of how GE imploded?

boeing.mediaroom.com

The Boeing Company Brings Latest Digital Cinema Technology to Moviegoers"

The Boeing Company [NYSE:BA] is making digital projection of full-length motion pictures a reality with the installation of the Boeing Digital Cinema systems in markets across the United States...
boeing.mediaroom.com boeing.mediaroom.com
Click to expand...
Need to consider the fact that stuff which is just paper and data is a lot cheaper to sell than real physical objects matters a lot too.

Selling a profitable unit will be stop gap, but many companies have done that in the past.
 
Boeing could do a whole lot of things.
 
Certainly not defending Boeing - but understanding and knowing a manufactured product's cost, is a lot more entertaining than balancing a spouses check book.
 
SebIp said:
Need to consider the fact that stuff which is just paper and data is a lot cheaper to sell than real physical objects matters a lot too.
Click to expand...

Some of us at LockMart believed we should give away our targeting systems for free, but sell the software and updates. Sorta like giving away razors but selling the blades. :)
 
Are they cash poor, maybe, but they are asset rich and I don't think they are going to have any issues in securing operating capitol without selling something off..
 
Yes, but they are on the verge of junk bond rating. Borrowing more is getting expensive.
 
Boeing is going to do what Boeing is gonna do.profit is their main objective
 
nauga said:
"We?"

Nauga,
and the mouse in his pocket
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:) Where there's a will, there are changes. We - everyone in the US - would be better off if corporations were run with a little more fear beyond that of their next earnings report.
 
For a second there, I thought the subject line said "Can Boeing spell 'Jeppesen'?"
 
Albany Tom said:
:) Where there's a will, there are changes. We - everyone in the US - would be better off if corporations were run with a little more fear beyond that of their next earnings report.
Click to expand...

Just curious, how much Boeing stock do you own?
 
Fearless Tower said:
Does anyone still own BA?

I was lucky. I sold all of my BA shares at a profit before the MAX debacle hit.
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I'm just curious when someone makes a statement such as "We - everyone in the US - would be better off if corporations were run with a little more fear beyond that of their next earnings report." and if they actually own stock.
 
Doc Holliday said:
I'm just curious when someone makes a statement such as "We - everyone in the US - would be better off if corporations were run with a little more fear beyond that of their next earnings report." and if they actually own stock.
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I actually own stock and I think corporations should be run with a little more fear than the next earnings. GE and Jack Walsh is a prime example. He ran the company in a hole by managing for short term earnings reports. His bonuses were great and the share holders got stuck.
 
Clip4 said:
I actually own stock and I think corporations should be run with a little more fear than the next earnings. GE and Jack Walsh is a prime example. He ran the company in a hole by managing for short term earnings reports. His bonuses were great and the share holders got stuck.
Click to expand...

So if you don't like how it's run, you can either buy more stock to get a say in how it's run, or sell your stock and invest in a company more to your liking.
 
WDD said:
Anyone else thinking of how GE imploded?
Click to expand...

All conglomerates fizzle at some point. ITT merged all kinds of companies including Wonder Bread, Sheraton hotels, telecommunications, insurance, and on and on in the 70’s. Didn’t make much sense. It had to shed companies and downsize in the 90’s.

GE was a conglomerate that came to rely less on its industrial divisions that used to be its core, and too much on its finance division, which made smoke-and-mirrors profits from writing shaky loans that went bad in the 2008 financial meltdown. It had to shed companies and downsize soon afterwards.

Boeing did lots of mergers and acquisitions. IMHO it will surely have the same fate: shed companies and downsize.
 
NoHeat said:
All conglomerates fizzle at some point. ITT merged all kinds of companies including Wonder Bread, Sheraton hotels, telecommunications, insurance, and on and on in the 70’s. Didn’t make much sense. It had to shed companies and downsize in the 90’s.

GE was a conglomerate that came to rely less on its industrial divisions that used to be its core, and too much on its finance division, which made smoke-and-mirrors profits from writing shaky loans that went bad in the 2008 financial meltdown. It had to shed companies and downsize soon afterwards.

Boeing did lots of mergers and acquisitions. IMHO it will surely have the same fate: shed companies and downsize.
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They're already downsized....When I worked there in the late 1990s/2000s, there were over 350K employees. Down to 175K these days and plans to dump more. I know many at Jepp that were laid off or "asked to retire".
 
Doc Holliday said:
Just curious, how much Boeing stock do you own?
Click to expand...
I honestly have no idea. Some, for sure, as they're still in the S&P 500 and that's one of the index funds I hold. But if I valued my personal financial interests over that of my integrity, how much different would I be than a common thief?
 
WSJ article today says Boeing intends to sell the unit that makes the Starliner. That’s the one that stranded two astronauts on the ISS. It hopes to keep some other space programs including SLS Space Launch System.
 
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