Jim Cramer Discusses the Manufacturing Recovery at GE Aerospace (GE) and Boeing (BA)

On September 8, Jim Cramer discussed the aerospace industry's recovery during an episode of Mad Money. He highlighted GE Aerospace's acquisition of Consolidated Precision Products (CPP) for nearly $12 billion, which strengthens the company's supply chain for both commercial and defense aircraft. Cramer noted that despite rising oil prices, travel demand remains strong, and the acquisition will help GE boost production speed.

While Boeing is not yet at its all-time high, its order book is full, and the company has made progress in securing better supply chain control. General Electric's (GE) second-quarter revenue grew by 21% year-over-year, reaching $13.3 billion, driven by strong commercial engine services and record internal shop visit output. The company's total order backlog exceeds $210 billion, supported by sustained airline demand for propulsion systems and aftermarket maintenance.

Boeing reported $24.6 billion in second-quarter revenue, with 171 commercial airplane deliveries. Its total company order backlog stands at $715 billion, including over 6,200 commercial aircraft. However, Boeing has faced challenges with temporary delivery swings and output adjustments in its assembly lines. Both companies face structural vulnerabilities, with GE aiming to fund its acquisition through debt financing and Boeing dealing with a large debt load and operational losses in its Commercial Airplanes segment.

Despite these challenges, the aerospace sector remains a significant area of investment, with both GE Aerospace and The Boeing Company offering opportunities for investors.