The US-China Trade War Is Not Hurting Boeing Yet
Airplane manufacturer Boeing's stock climbed 3% percent Wednesday morning after the company announced earnings that were much higher than expected for the first quarter of 2018.
Boeing's total revenue for the first three months of 2018 was $23.38 billion, which showed a 6% increase compared to the first quarter of 2017.
The bump in revenue and share prices on Wall Street were especially good news for Boeing after weeks of swirling fears that a potential trade war between the US and China would negatively impact the aircraft builder's bottom line. The company's stock took a significant dip in March after Trump announced tariffs on Chinese aluminum and steel, and China retaliated with tariffs on American-made aircraft.
Many investors saw this as a threat to Boeing's profits because the company makes major sales — to the tune of 300 planes worth $37 billion in its latest deal in 2017 — in the Chinese market. But the looming threat of trade war has so far not had a negative impact on the plane maker's revenue.
Part of the profits boost can be attributed to Boeing's climbing production and delivery rates. Earlier in April, the company said its deliveries rose 9% year over year so far in 2018. In the first quarter alone, Boeing delivered 184 aircraft and inked 221 net orders.
Among the aircraft delivered, 132 were new single-aisle 737s. There was also the delivery of the first 787-10 Dreamliner to Singapore Airlines and delivery of the first 737 MAX 9 to Lion Air Group. Boeing's commercial airplanes sector accounted for $13.7 billion in overall revenue. The company's backlog of orders clocks in at more than 5,800 airplanes valued at $415 billion.
Boeing CEO Dennis Muilenburg told CNBC earlier this year that by 2020, the company will shoot to build about 900 planes per year — or about one jet every 10 hours.
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Earn 200K miles when you spend $30K in the first 3 months, and an additional 200K miles when you spend $150K in the first 6 monthsLIMITED-TIME OFFER: Earn up to 400K bonus milesAnnual Fee
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The Capital One Venture X Business Card has all the Capital One Venture X Rewards Credit Card has to offer and more. It offers an incredible welcome bonus and requires an equally impressive spend to qualify. In addition, the card comes with premium travel perks like annual travel credit. (Partner offer)Pros
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- In addition, the card comes with many premium travel perks such as an annual $300 credit for bookings through Capital One Business Travel.
- Business owners are also able to add employee cards for free.
Cons
- The card requires significant spending to earn the welcome offer.
- Another drawback is that the annual travel credit can only be used on bookings made through Capital One Business Travel.
- LIMITED-TIME OFFER: Earn up to 400K bonus miles: 200K miles when you spend $30K in the first 3 months, and an additional 200k miles when you spend $150k in the first 6 months
- Earn unlimited 2X miles on every purchase, everywhere—with no limits or category restrictions
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- With no preset spending limit, enjoy big purchasing power that adapts so you can spend more and earn more rewards
- Empower your teams to make business purchases while earning rewards on their transactions, with free employee and virtual cards. Plus, automatically sync your transaction data with your accounting software and pay your vendors with ease
- Redeem your miles on flights, hotels and more. Plus, transfer your miles to any of the 15+ travel loyalty programs
- Every year, you'll get 10,000 bonus miles after your account anniversary date. Plus, receive an annual $300 credit for bookings made through Capital One Business Travel
- Receive up to a $120 credit for Global Entry or TSA PreCheck®. Enjoy access to 1,300+ airport lounges worldwide, including Capital One Lounge locations and Priority Pass™ lounges, after enrollment
- Enjoy a $100 experience credit and other premium benefits with every hotel and vacation rental booked from the Premier Collection
- This is a pay-in-full card, so your balance is due in full every month