Boeing confident in order backlog, but shares drop as markets continue to dive
Stocks continued to slide around the world on Thursday, but Boeing has stated that its sizable order backlog and the slowly improving global economic situation will insulate it from the crisis.
Boeing’s production is completely accounted for until 2012, with B737 production accounted for until 2013. The manufacturer recently announced plans to increase B737 production to 34 aircraft per month from early 2012.
According to Boeing Commercial Airplanes CEO, Jim Albaugh, Europe’s debt woes will not have an impact on what's happening elsewhere. Boeing sees an improving business environment, although it is not yet “robust”. Lower oil prices and sliding commodity values are also acting in Boeing’s favour, though the plummeting euro is helping rival, Airbus.
Boeing's shares slumped 4.9% yesterday, while EADS fell 2.0%.
Selected Aviation suppliers’ daily share price movements (% change): 20-May-2010