In a sign of the aerospace company's equanimity with trade tensions, Boeing Co plans to open a new facility in China by the end of this year to complete the final refurbishment of some of its 737s.
Chief Executive Dennis Muilenburg said Wednesday that construction is under way at the completion center near Shanghai. Boeing Co has said the company needs the center to compete with rival Airbus SE, EADSY, which has begun making aircraft in China.
Muilenburg's comments on the earnings call came as Boeing Co's first-quarter results beat analysts' expectations and raised its full-year profit and operating cash flow outlook. The new outlook shows that Boeing Co is gradually addressing the challenges related to the overall aerospace supply chain and engines and other aircraft parts, while the company and Airbus are also increasing aircraft production.
The results also show that Boeing Co's business has not been hurt by the mutual resentment between US and Chinese officials on trade issues. Mr Muilenburg said Boeing Co had not been affected by the US-China round-trip trade proposal.
China accounts for 1/5 of Boeing Co's aircraft delivery. The new China completion center will be equipped with seats and other accessories such as an in-flight entertainment system, which Trump called during the campaign as an example of the transfer of jobs overseas.
The aerospace company will still assemble 737s at its factory on the outskirts of Seattle, but will also send some of them to a new factory in China, which is owned by Boeing Co and the state-owned Commercial aircraft Corporation of China (Commercial Aircraft Corp. Of China Ltd.) It's a joint venture.
Muilenburg also said on Wednesday that Boeing Co followed the guidance of U. S. officials on potential deals to sell aircraft to Iranian airlines. He said the original delivery date of the aircraft had been postponed beyond 2018 as Iranian, US and European officials were discussing sanctions involving Iran's nuclear weapons program.
Potential aircraft sales to Iran are not included in Boeing Co's order, which now stands at more than 5800 aircraft at a total price of $415 billion.
Boeing Co said its first-quarter profit rose to $2.48 billion, compared with $1.58 billion a year earlier, and earnings per share rose to $4.15 from $2.54. Excluding pension costs, earnings per share were $3.64, well above analysts' average expectations of $2.58.
The company raised its full-year earnings per share forecast by 50 cents to $14.3-$14.50, its operating cash flow forecast by $500m and its latest forecast for high-end earnings of $15.5 billion.
By Doug Cameron; Write to Doug Cameron at doug.cameron@wsj.com
Copyright (c) 2018 Dow Jones Company. The copyright of this article belongs to Dow Jones and may not be translated or reproduced without permission.
Chief Executive Dennis Muilenburg said Wednesday that construction is under way at the completion center near Shanghai. Boeing Co has said the company needs the center to compete with rival Airbus SE, EADSY, which has begun making aircraft in China.
Muilenburg's comments on the earnings call came as Boeing Co's first-quarter results beat analysts' expectations and raised its full-year profit and operating cash flow outlook. The new outlook shows that Boeing Co is gradually addressing the challenges related to the overall aerospace supply chain and engines and other aircraft parts, while the company and Airbus are also increasing aircraft production.
The results also show that Boeing Co's business has not been hurt by the mutual resentment between US and Chinese officials on trade issues. Mr Muilenburg said Boeing Co had not been affected by the US-China round-trip trade proposal.
China accounts for 1/5 of Boeing Co's aircraft delivery. The new China completion center will be equipped with seats and other accessories such as an in-flight entertainment system, which Trump called during the campaign as an example of the transfer of jobs overseas.
The aerospace company will still assemble 737s at its factory on the outskirts of Seattle, but will also send some of them to a new factory in China, which is owned by Boeing Co and the state-owned Commercial aircraft Corporation of China (Commercial Aircraft Corp. Of China Ltd.) It's a joint venture.
Muilenburg also said on Wednesday that Boeing Co followed the guidance of U. S. officials on potential deals to sell aircraft to Iranian airlines. He said the original delivery date of the aircraft had been postponed beyond 2018 as Iranian, US and European officials were discussing sanctions involving Iran's nuclear weapons program.
Potential aircraft sales to Iran are not included in Boeing Co's order, which now stands at more than 5800 aircraft at a total price of $415 billion.
Boeing Co said its first-quarter profit rose to $2.48 billion, compared with $1.58 billion a year earlier, and earnings per share rose to $4.15 from $2.54. Excluding pension costs, earnings per share were $3.64, well above analysts' average expectations of $2.58.
The company raised its full-year earnings per share forecast by 50 cents to $14.3-$14.50, its operating cash flow forecast by $500m and its latest forecast for high-end earnings of $15.5 billion.
By Doug Cameron; Write to Doug Cameron at doug.cameron@wsj.com
Copyright (c) 2018 Dow Jones Company. The copyright of this article belongs to Dow Jones and may not be translated or reproduced without permission.