The US-China Trade War Is Not Hurting Boeing Yet
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.
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.
Featured image by Scott Olson/Getty Images.
Welcome to The Points Guy!
Earn 90,000 bonus miles after you spend $3,000 in purchases within the first three months of card membership. Plus, earn a $200 statement credit after your first Delta purchase within the first three months. Offer ends 7/28/21.
With Status Boost™, earn 10,000 Medallion Qualification Miles (MQMs) after you spend $25,000 in purchases on your Card in a calendar year, up to two times per year getting you closer to Medallion Status. Earn 3X Miles on Delta purchases and purchases made directly with hotels, 2X Miles at restaurants and at U.S. supermarkets and earn 1X Mile on all other eligible purchases. Terms Apply.
- Limited Time Offer: Earn 90,000 Bonus Miles after spending $3,000 in purchases on your new Card in your first 3 months and a $200 statement credit after you make a Delta purchase with your new Card within your first 3 months. Offer expires 7/28/2021.
- Limited Time Offer: Plus, get a 0% intro APR on purchases for 12 months from the date of account opening, then a variable 15.74%-24.74%. Offer expires 7/28/2021.
- Accelerate your path to Medallion Status, with Status Boost®. Plus, in 2021 you can earn even more bonus Medallion® Qualification Miles (MQMs) to help you reach Medallion Status.
- Earn 3X Miles on Delta purchases and purchases made directly with hotels.
- Earn 2X Miles at restaurants worldwide, including takeout and delivery and at U.S. supermarkets.
- Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. *Payment of the government imposed taxes and fees of no more than $75 for roundtrip domestic flights (for itineraries with up to four flight segments) is required. Baggage charges and other restrictions apply. See terms and conditions for details.
- Enjoy your first checked bag free on Delta flights.
- Fee Credit for Global Entry or TSA Pre✓®.
- Enjoy an exclusive rate of $39 per person per visit to enter the Delta Sky Club® for you and up to two guests when traveling on a Delta flight.
- No Foreign Transaction Fees.
- $250 Annual Fee.
- Terms Apply.
- See Rates & Fees