During a September 8 episode of Mad Money, Jim Cramer examined the broader aerospace ecosystem following GE Aerospace's (NYSE:GE) nearly $12 billion agreement to acquire castings specialist Consolidated Precision Products (CPP). Commenting on the strategic importance of supply chain control and the enduring strength of commercial and defense aviation despite rising oil prices, Cramer stated:
I still believe in the data center, but I also want to open your eyes to other opportunities. This morning, for example, GE Aerospace spent nearly $12 billion to buy a castings company called Consolidated Precision Products to integrate this key segment into its supply chain. It's vital for both commercial aircraft and particularly defense, both of which are booming. Now, on a day where oil's up, you might not want to focus on anything airline related, but travel's been booming the whole time, the whole time the Iranian war's been going on. This acquisition will pay off quickly for GE, making it more likely that they can accelerate production. This is also good news, therefore, for Boeing, a huge customer of GE that needs to boost its production speed.
GE is relatively close to its highs, deservedly so. Boeing? Nowhere near its high. Yet the order book is full. Last week, there was this negative article about how Boeing is being hurt by the problem-filled Spirit AeroSystems acquisition. It made that one two years ago. But that actually had to be done because Boeing, like GE Aerospace, needs to get better control of its supply chain. Aha, you say, who needs that kind of problem? Boeing just reported its slowest deliveries in 4 months. I come back and say, wait a second. First, the problems from the Spirit deal are now behind them. You know what? The story is actually old news.
Plus, CEO Kelly Ortberg has made it clear that orders would be lumpy. I knew that. And look, I know the high price of oil, particularly jet fuel, is bad news for the airlines. But the higher price of fuel also makes these new engines and airplanes far more valuable than before. Why? They're way more energy efficient. It's a good situation that has nothing to do with the data center. It does require more, better tech that AI can help with.
GE Aerospace (NYSE:GE) and The Boeing Company (NYSE:BA) represent two distinct pillars of the aerospace manufacturing ecosystem, operating at massive commercial scale. GE Aerospace reported second-quarter revenue of $13.3 billion, up 21% year-over-year, driven by strong commercial engine services and record internal shop visit output. Its total order backlog extends past $210 billion, supported by sustained airline demand for propulsion systems and aftermarket maintenance.
#boeing #chain #consolidated
I still believe in the data center, but I also want to open your eyes to other opportunities. This morning, for example, GE Aerospace spent nearly $12 billion to buy a castings company called Consolidated Precision Products to integrate this key segment into its supply chain. It's vital for both commercial aircraft and particularly defense, both of which are booming. Now, on a day where oil's up, you might not want to focus on anything airline related, but travel's been booming the whole time, the whole time the Iranian war's been going on. This acquisition will pay off quickly for GE, making it more likely that they can accelerate production. This is also good news, therefore, for Boeing, a huge customer of GE that needs to boost its production speed.
GE is relatively close to its highs, deservedly so. Boeing? Nowhere near its high. Yet the order book is full. Last week, there was this negative article about how Boeing is being hurt by the problem-filled Spirit AeroSystems acquisition. It made that one two years ago. But that actually had to be done because Boeing, like GE Aerospace, needs to get better control of its supply chain. Aha, you say, who needs that kind of problem? Boeing just reported its slowest deliveries in 4 months. I come back and say, wait a second. First, the problems from the Spirit deal are now behind them. You know what? The story is actually old news.
Plus, CEO Kelly Ortberg has made it clear that orders would be lumpy. I knew that. And look, I know the high price of oil, particularly jet fuel, is bad news for the airlines. But the higher price of fuel also makes these new engines and airplanes far more valuable than before. Why? They're way more energy efficient. It's a good situation that has nothing to do with the data center. It does require more, better tech that AI can help with.
GE Aerospace (NYSE:GE) and The Boeing Company (NYSE:BA) represent two distinct pillars of the aerospace manufacturing ecosystem, operating at massive commercial scale. GE Aerospace reported second-quarter revenue of $13.3 billion, up 21% year-over-year, driven by strong commercial engine services and record internal shop visit output. Its total order backlog extends past $210 billion, supported by sustained airline demand for propulsion systems and aftermarket maintenance.
#boeing #chain #consolidated
2 hours ago
