Shares of Boeing has recently been surging lately due to its record-breaking deliveries as well as mostly positive earnings numbers. However, shares of Boeing are set to rally further in the coming months as the American airplane manufacturer is expected to boost its overall plane production and deliveries this year.
Upbeat 2017 Earnings
Last month, Boeing delivered a fourth-quarter earnings report that largely exceeded most analyst estimates as well as a positive outlook for its upcoming performance. Boeing shares rallied by 6% after it posted earnings of $5.18 per share to an overall net income of $3.13 billion compared to their earnings of $2.59 per share to $1.63 billion during the same quarter a year ago.
The company also announced that it has been able to book another 912 orders totaling its commercial aircraft orders backlog to 5,864, which is an all-time high. Production of its much-awaited and highly-anticipated 777X flight test plane along with a long-range jet expected to be in service by the year 2019.
Boeing’s defense business sector also recorded orders worth $50 billion during the year 2017 with 40% of the total orders coming from international orders. Boeing also forecasted a delivery of around 810 to 815 commercial aircraft this year which represents a rise of 47 compared to last year from their record of 753 commercial aircraft.
During their fourth-quarter earnings call, Boeing chief executive officer Dennis Muilenburg stated that the company is interested in the business combination as they are seeing a strong strategic value as well as a clear synergy in a number of areas referring to the recent Embraer talks.
Just recently, it has been revealed that Boeing is getting closer to reaching a deal with Embraer, a Brazilian aircraft maker which would give the Brazilian government a stake worth around 80% to 90%.
Bigger 2018 Production
This year, CEO Dennis Muilenburg is planning to build as much as 900 planes every year in a span of ten years. Following its production of 763 commercial aircraft last year, the aerospace giant has now a target of delivering as much as 810 to 815 airplanes which is close to Boeing’s initial 2020 goal.
Muilenburg also announced that this massive goal was due to the projection of worldwide aircraft fleets rising twice as much in size over the next two decades attributing to the need for more than 40,000 new airplanes.
In terms of production, Boeing’s Renton plant alone as a projected production rate of 57 jets every month and is set to go higher further. Also previously, Boeing has reportedly boosted its production of the 737 to a monthly number of 64 jets.