Shares in Boeing closed 4.46 per cent down on Wednesday (October 22nd) despite the company reporting a boost in its annual profit forecast.
The aviation company reported a record backlog of orders which it valued at $490 billion (£305.4 billion) for the end of the third quarter. This was an increase on the $440 billion recorded at the start of the quarter. Boeing has also revised its share price expectations which have grown to between $8.10 and $8.30 per share compared to the $7.90 and $8.10 per share recorded earlier in the year.
There have been concerns over the profitability of Boeing commercial aircraft division. Despite the unit selling 186 jets over the course of the third quarter, 17 more than the previous quarter, investors have been withdrawing funds. The sector had reported a strong top line performance but with shareholders bailing out it sent stocks tumbling by 1.5 per cent.
Boeing has experienced issues with the release of some of its latest models, none more so than the 787 Dreamliner. Since its inception the model has been plagued by operational and battery problems. Both incidents have led to the fleet being grounded in the past but Boeing is confident that these issues have been rectified and more airlines are now investing in the luxury models.
Jim McNerney, Boeing chief executive and president, explained that the commercial division has added 501 new orders for jets in the last quarter and is ready to launch a number of updated versions of jets. This includes renovated versions of the 737 and the 737 Max 200.
"With three solid quarters behind us and confidence in our ongoing performance, we are increasing our earnings per share outlook for 2014, as our team remains focused on providing value to our customers and shareholders, profitably ramping up airplane production, executing on our development programs, and driving productivity and affordability throughout the enterprise," Mr McNerney added.
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