As, Boeing, the world’s largest plane maker rises out of the ashes of nearly a decade of losses, its shares reach a record high. The 787 Dreamliner contributed to the boost in profits for the plane maker.
Boeing holds hope that not only the 787 but the 737 helps aid to the boost in sales results this year. The plane maker did, however, report that sales did drop when it slowed production of wide-body 777 planes. This lag in 777 production will also bring down revenue to around $92.5 billion.
Boeing stock did well. Its average index scaled up well past the 20,000 mark and its shares rose 4.2 percent. Boeing shares closed at $167.36 making it one of the top performers within at least thirty members of the Dow Jones.
In the past investors were slightly concerned about the lack of aircraft demand due to rising oil prices. Even though investors were skeptical, Boeing has now since vowed to return money to shareholders.
President Trump predicted job losses for Boeing if the plane maker followed through with its plans to build a factory in China. The factory would be responsible for painting planes on their way to small carriers. However, despite that prediction, Boeing CEO Dennis Muilenburg, is nothing but optimistic about business in China.
It would seem that the factory in China would have no barring on U.S. jobs. Each plane that would have to go through the new facility would be built here in the U.S. According to Seattle Times, Muilenburg said, “We all understand that a productive and healthy relationship with China is key.”
It’s known that last year Boeing repurchased at least 7 percent of its own shares. Analysts aren’t sure how long the plane maker can keep up buybacks like that. Not only that but the records of its spending don’t exactly bode well.
Boeing spent $7 billion in stock, $4.6 billion for research purposes, $2.8 on dividends, and $2.6 billion on equipment and property. This amount is far more than Boeing recorded that it brought in which was an estimated $10.5 billion for 2016. However, the company expects this number to go up for the new year to about $10.8 billion.
Even though Boeing says its loss estimates around $92.5, the company expects the 737 to bring in more deliveries. Boeing expects to send out around 765 of the commercial planes which is higher than last year’s delivery number of 748.
Boeing is bringing out the 787 which is the first jet to be made from carbon-fiber instead of aluminum. It is also preparing a delivery to U.S. Air Force of 18 aerial gas stations.