Boeing has rewarded investors handsomely as it has been rival Airbus nearly to death. The 777 Dreamliner and the new 747-8 have picked up orders that Airbus needed for products like is super-jumbo A-380. Orders have come for both cargo and passenger versions.
The company had several scandals and run-ins, but the financial fall-out from those was written off last year. The Boeing (BA) has run up from under $53 two years ago to over $90 more recently.
Well, that is now yesterday’s news. Boeing has big problems again. It faces several negligence and breach claims for commercial satellites it built. Not only is Boeing facing claims, the most recent from Japanese and Canadian customers, which could total well over $1.5 billion, but it is also in a battle with the insurance companies that cover the companies that bought the satellites.
If the claims are successful, Boeing could face another round of write-off that could hurt its results in a future quarter. That could throw some cold water on the stock’s big run.
Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.
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