News
Boeing reports record profits and digests Bombardier C Series tariff defeat
February 2nd 2018
Boeing shares hit an all-time high this week after the aerospace company announced record net income of almost US$3.13 billion for the three months to December 31, 2017, compared with $1.6 billion for the same period a year ago. Read More »
Fourth quarter revenue grew nine per cent, to $25.37 billion, which exceeded analysts’ expectations. The commercial aircraft arm forecast delivery of up to 815 airliners in 2018, an increase of 47 over 2017.
As a result, the Boeing Company reported net earnings of US$8.2 billion in 2017, up 67% over the previous year. Its backlog remains ‘robust’, at US$488 billion. In 2018, Boeing forecast its operating cash flow would increase to approximately US$15 billion and revenues would grow to $96 billon-$98 billion.
“In 2017 we delivered the first 737 MAX airplanes, launched the 737 MAX 10 and completed the 787-10 first flight, all the while delivering more commercial airplanes than ever. We launched Boeing Global Services during the year, to deliver greater lifecycle value, and achieved growth that outpaced the market,” said Boeing chairman, president and CEO, Dennis Muilenburg.
Boeing Commercial Airplanes’ impressive performance softened the blow of the U.S. International Trade Commission’s (ITC) decision to void a 299.45% tariff on Bombardier C Series jets. Delta Air Lines made a big order for the aircraft in 2016.
Proposed by the U.S. Commerce Department last October and endorsed by U.S. President Donald Trump, the tariff was put forward after Boeing complained Bombardier could sell the jets to Delta at very low prices because the Canadian manufacturer was subsided by its government.
“With this matter behind us, we are moving full speed ahead with finalising our partnership with Airbus. Integration planning is going well and we look forward to delivering the C Series to the U.S. market so that U.S. airlines and the U.S. flying public can enjoy the many benefits of this remarkable aircraft,” Bombardier said.
Boeing has since had detailed discussions with Brazilian small jet manufacturer, Embraer. At press time, no progress had been announced in negotiations between the two parties.
