Boeing said it had reached an agreement to supply Icelandair with 12 737s

CHICAGO, Thu Dec 6, 2012 — Boeing said it had reached an agreement to supply Icelandair  with 12 737 MAX aircraft which have a $1.2 billion list price.

Icelandair said on Thursday it had purchase rights for another 12 aircraft. It planned to fund the acquisition from internal resources as well as loans from banks.

“The company is in discussions with Export-Import Bank of the United States about possible financing support,” it said. It noted that the $1.2 billion price was the list price and that the actual purchase price was confidential.

Boeing said it was finalizing the details, after which time it would post the deal as a firm order.

The airline is buying eight 737 MAX8 aircraft and four 737 MAX9 planes. The MAX aircraft are a variant of the Boeing 737 and will first enter service in 2017. The first delivery to Icelandair is scheduled in the first half of 2018.

“Fuel savings compared to Icelandair’s present fleet of Boeing 757 is more than 20 percent per seat,” the airline said.

Icelandair operates a fleet of 23 757 airplanes for both its passenger and cargo operations.

The airline reported a 20 percent rise in pretax profit in the third quarter to $64.8 million and has benefited from increasing tourism to Iceland.

It said in the quarterly report that the number of passengers on international flights rose 11 percent to 745,000 year-on-year.

Boeing signs record $22.4 billion commercial order with Lion Air

CHICAGO – Boeing Co said on Tuesday it signed its largest ever commercial airplane order with Indonesia’s Lion Air in a deal worth $22.4 billion.

Boeing said Lion Air, Indonesia’s largest carrier by passenger volume, has ordered 230 airplanes, including 201 737 MAXs and 29 next-generation 737-900 ERs.

Lion Air will also acquire purchase rights for an additional 150 airplanes, Boeing said.

The announcement was made in a statement at the Singapore airshow.

In November, Lion Air announced the original massive order during U.S. President Barack Obama’s Asia-Pacific tour. Europe’s Airbus had accused the United States of applying political pressure to secure the deal.

KB Home signals recovery as new orders jump 40 percent

LOS ANGELES ― KB Home, the fifth-largest homebuilder, saw a 40 percent jump in quarterly orders, suggesting a possible recovery in the housing market after a slump that has lasted half a decade.

Data released on Tuesday showed permits for future construction in the United States rose 3.2 percent in August. However, new construction of homes fell more than was expected.

It has been particularly tough for builders of new homes, with plenty of used houses and foreclosed homes in the market.

Last month, UBS said the slump in the new-home market had reached its nadir and further declines in sales and pricing over the second-half of the year were unlikely.

KB Home, which posted a narrower-than-expected third-quarter loss, said new orders increased to 1,838. Orders are a key indicator for builders who do not book revenue until they close on a house.

The market was expecting new orders to rise 15-20 percent.

On Monday, No. 3 homebuilder Lennar Corp. also reported a 11 percent jump in new orders.

“This is the first double-digit year-over-year growth in orders since the fourth quarter of 2009 and seems to be the bright spot in the earnings release,” CRT Capital Group analyst Michael Kim said.

KB Home, which also competes with Toll Brothers, sold homes for an average of $227,400, up from $214,200, a year ago.

However, on Thursday, JP Morgan downgraded the company and said demand will be muted in 2012, hurt by weakness in job growth and falling consumer confidence.

KB Home cut costs by 26 percent to $363.1 million in the third quarter ended Aug. 31, building on a 16 percent cut in the second quarter.

Net loss at KB Home, valued at about $538 million, widened to $9.6 million, or 13 cents a share.

Sales at the company, which was founded in 1957, fell 27 percent to $367.3 million for the quarter, while home deliveries fell to 1,603 homes from 2,320 homes.

Shares of rose more than 6 percent to $6.08 in early trading on the New York Stock Exchange, but pared most of the gains to trade up 1.6 percent at $5.81 around 11:45 ET.

The Dow Jones U.S. Home Construction Index. DJUSHB was up 1.5 percent.