Models of a Boeing passenger planes on display during the 12th China International Aviation and Aerospace Exhibition last year in Zhuhai city. (AP Photo/Kin Cheung, File)

Models of a Boeing passenger planes on display during the 12th China International Aviation and Aerospace Exhibition last year in Zhuhai city. (AP Photo/Kin Cheung, File)

Boeing soars and lifts markets with record $101B in revenue

The company easily beat Wall Street’s profit and sales expectations for the fourth quarter.

Associated Press and Bloomberg News

CHICAGO — The Boeing Co. reported annual revenue of more than $100 billion for the first time and shares soared after the company easily beat Wall Street’s profit and sales expectations for the fourth quarter.

The big numbers from the plane maker, which is heavily exposed to a trade standoff between the U.S. and China, pushed the Dow higher at the opening bell Wednesday.

Sales rose across all businesses at the end of the year, pushing annual revenue to $101.1 billion. The defense division’s 16 percent sales gain in the fourth quarter softened the blow from factory stumbles that slowed deliveries of the workhorse 737 jetliner, Boeing’s biggest source of profit.

Costly out-of-sequence work on commercial aircraft weighed on results, dragging free cash flow down to $2.45 billion in the fourth quarter. Analysts had predicted $2.52 billion.

U.S. and Chinese negotiators start two days of high-level talks Wednesday aimed at settling a six-month trade war that has weakened both sides, shaken financial markets and clouded the outlook for the global economy.

The Trump administration has imposed penalty tariffs on steel and aluminum imports from a number of countries and on $250 billion of Chinese imports as the administration seeks to apply pressure to other countries to reduce their barriers to American exports. China and other nations have retaliated by imposing penalty tariffs on U.S. exports, sparking a tit-for-tat trade war.

In that environment, Boeing in the final three months of the year delivered 238 commercial airplanes in the quarter, up 14 percent from the same period last year. Boeing delivered a record 806 commercial planes last year, up 6 percent from the prior year, and it expects more of the same in 2019, projecting deliveries of between 895 and 905 commercial aircraft. Increased jetliner production is crucial to Boeing’s plans to boost cash flow.

Boeing and Airbus, its European rival, are riding high on a historic sales boom rooted in low interest rates and a growing middle class, particularly in Asia.

Boeing sold more commercial aircraft than it made in 2018, tallying 893 orders with a value of $143.7 billion. Repeating that performance this year will be tougher as the company targets delivering a record 895 to 905 jetliners while navigating a global economy fraught with geopolitical risk.

The Boeing Co. had net income of $3.42 billion, or $5.93. Earnings, adjusted for non-recurring gains, came to $5.48 per share, easily topping the per-share profit of $4.52 that industry analysts were looking for, according to a poll by Zacks Investment Research. Boeing reported core earnings per share of $5.07 for the same period last year.

The Chicago company’s revenue of $28.34 billion also breezed past projections of $26.65 billion and topped last year’s fourth quarter of $24.77 billion.

Boeing expects full-year 2019 earnings in the range of $19.90 to $20.10 per share, with revenue in the range of $109.5 billion to $111.5 billion.

Boeing shares took off at the opening bell Wednesday, rising 6 percent. Shares have been knocked during the impasse between Washington and Beijing, but they’re up 13 percent this year.

Portions of this story were generated by Automated Insights using data from Zacks Investment Research. Access a Zacks stock report.

Talk to us

More in Herald Business Journal

Funko warehouse in Everett. (Kevin Clark / The Herald)
Funko to close Everett warehouses, shift work to Arizona

The company headquarters are currently in downtown Everett, but distribution will move to a Phoenix suburb.

FILE - In this Monday, March 1, 2021 file photo, The first Alaska Airlines passenger flight on a Boeing 737-9 Max airplane takes off on a flight to San Diego from Seattle-Tacoma International Airport in Seattle. A Boeing pilot involved in testing the 737 Max jetliner was indicted Thursday, Oct. 14,2021 by a federal grand jury on charges of deceiving safety regulators who were evaluating the plane, which was later involved in two deadly crashes. (AP Photo/Ted S. Warren, File)
Alaska Airlines to add Boeing 737s to the Paine Field fleet

It’s a sign of the growing popularity of flying from Everett. So far, much smaller Embraer E175s have been the rule.

FILE - Washington Attorney General Bob Ferguson talks to reporters, Monday, Aug. 26, 2019, during a news conference in Seattle. In a 5-4 decision Thursday, Jan. 20, 2022, the Washington Supreme Court upheld an $18 million campaign finance penalty against the Consumer Brands Association, formerly known as the Grocery Manufacturers Association. Ferguson sued the group in 2013, alleging that it spent $11 million to oppose a ballot initiative without registering as a political committee or disclosing the source of the money. (AP Photo/Ted S. Warren)
Washington justices uphold $18M fine in GMO-labeling case

Big grocers funneled dark money into a campaign against genetically modified labels on food packaging.

Mara Wiltshire, left, celebrates her first place finish in Mario Cart against her son Miles Jenkins, 7, as Calvin Jenkins, 5, looking on Friday evening at their home in Everett, Washington on January 7, 2022.  (Kevin Clark / The Herald)
Child care’s heightened burden takes parents out of workforce

One Snohomish County mom said she couldn’t return to work “because I didn’t have child care and I wouldn’t be able to afford it.”

In this photo taken May 17, 2017, wine barrels are shown at a vineyard adjacent to the Walla Walla Vintners winery in Walla Walla, Wash. The remote southeastern Washington town of Walla Walla - which used to be best known for sweet onions and as home of the state penitentiary - has now reinvented itself into a center of premium wines and wine tourism. (AP Photo/Nicholas K. Geranios)
More sustainable Washington wines are on the way

Labels will indicate grape growers met guidelines in 9 areas, including water, pest and labor practices.

A sign bearing the corporate logo hangs in the window of a Starbucks open only to take-away customers in this photograph taken Monday, April 26, 2021, in southeast Denver.  Starbucks is no longer requiring its U.S. workers to be vaccinated against COVID-19, reversing a policy it announced earlier this month. The Seattle coffee giant says, Wednesday, Jan. 19, 2022,  it's responding to last week’s ruling by the U.S. Supreme Court.  (AP Photo/David Zalubowski)
Starbucks nixes vaccine mandate after Supreme Court ruling

The move reverses a policy the coffee company announced earlier this month.

Logo for news use featuring the municipality of Stanwood in Snohomish County, Washington. 220118
Regulators OK doubling of composting operation in Stanwood

Lenz Enterprises can now handle 150,000 tons a year. Residents worry odors will be a problem.

Christian Sayre
Everett bar owner arrested again on new sexual assault charges

Christian Sayre, longtime owner of The Anchor Pub, was charged Friday with 10 counts of felony sex offenses.

FILE - Bill Gates speaks during the Global Investment Summit at the Science Museum, London, Tuesday, Oct, 19, 2021. A small city in the top U.S. coal-mining state of Wyoming will be home to a Bill Gates-backed experimental nuclear power project near a coal-fired power plant that will soon close, officials announced Tuesday, Nov. 16, 2021. (Leon Neal/Pool Photo via AP, File)
Microsoft to review workplace harassment, including Bill Gates allegations

One engineer wrote in a letter that she had a sexual relationship with Gates over several years.

Snohomish roofing company fined another $425K for safety violations

Allways Roofing has had at least seven serious injuries on its job sites, according to the state.

ZeroAvia will collaborate with Alaska Air Group, the parent company of Alaska Airlines, to produce a hydrogen-electric powertrain capable of flying 76-seat regional De Havilland Q400 aircraft in excess of 500 nautical miles. (Alaska Airlines)
Hydrogen-powered aircraft company ZeroAvia coming to Everett

It adds to Snohomish County’s growing repertoire of firms focused on flight without petroleum.

Jack Ng, owner of China City, at his restaurant in Mill Creek on Tuesday, Jan. 4, 2022. (Olivia Vanni / The Herald)
Businesses and nonprofits plan to push through COVID in 2022

“You can’t just wait until the fog clears,” says one business owner. Here’s what he and others are planning.