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BUSINESS Thursday 26 January 2017
A25

Amid low defense revenue:

Boeing beats Wall Street Q4 expectations

DAVID KOENIG in developing markets, es- issues including problems
AP Airlines Writer pecially Asia, all of which with the refueling boom.
DALLAS (AP) — Boeing Co. have raised demand for CEO Dennis Muilenburg
beat Wall Street expecta- jets. Jet fuel prices spiked said Pentagon and con-
tions for fourth-quarter prof- twice in the past decade, gressional support for Boe-
it despite a slump in rev- creating a rush for more fu- ing’s key defense programs
enue from its defense busi- el-efficient planes. And low remains solid. And he said
ness, and it forecasts that interest rates made planes he welcomed Trump’s
deliveries of commercial more affordable. comments last month
jets will rise in 2017 after slip- Both big plane makers about one of the compa-
ping last year. have order backlogs that ny’s most familiar products.
Boeing said Wednesday will last for years. However, Boeing is in the design stage
that it expects full-year they are likely to face more of work on customizing 747

An engine and part of a wing from the 100th 787 Dreamliner to be built at Boeing’s North Charles-
ton, S.C., facility are seen outside the plant. Boeing Co. (BA) on Wednesday, Jan. 25, 2017, re-
ported fourth-quarter net income of $1.63 billion.
(Brad Nettles/The Post And Courier via AP)

earnings in 2017 to be competition in the next jumbo jets to replace the
roughly in line with analysts’ few years for sales of their current Air Force One fleet.
forecasts, although its rev- workhorse models, the Boe- Trump tweeted “costs are
enue prediction fell short of ing 737 and Airbus A320. out of control, more than $4
Wall Street targets. Canada’s Bombardier and billion. Cancel order!” That
The shares rose more than 4 Russia and China are in led to a meeting between
percent in afternoon trad- various stages of deliver- Muilenburg and Trump at
ing. ing similar-sized, single-aisle Trump Tower.
On a call with analysts and jetliners. Boeing will coun- “We had some targeted
reporters, Boeing execu- ter by delivering the first of discussions, well-publicized
tives spoke positively about a new, upgraded 737 in a discussions on things like Air
the potential for higher de- few months. Force One and fighter air-
fense spending, lower tax- And Boeing’s govern- craft,” Muilenburg said. “I
es and less regulation un- ment business could come think those were very pro-
der the new administration. under increasing cost pres- ductive discussions as well.
They even downplayed the sure. Boeing predicted This is all about making sure
sting of President Donald that 2017 revenue from its we’re providing best capa-
Trump’s tweets and com- defense and space busi- bility ... at best affordability,
ments last month about the ness could fall by up to 5 best value for our taxpay-
high price of new Air Force percent, including a drop in ers. We’re exactly on the
One planes. sales of military jets, which same page there.”
Boeing and European rival the company blamed on Jeff Windau, an analyst for
Airbus have boomed in re- the timing of some aircraft Edward Jones, said there
cent years from global eco- deliveries. Boeing took an- could be a push and pull
nomic growth, better prof- other write-down on a key under Trump — more de-
itably among major world tanker program that has fense spending but also
airlines, and a rise in travel been plagued by design pressure to cut prices.q