Seeking Alpha

Boeing's McNerney says currency swings won't hurt business

  • A chunk of Boeing's (BA) outsized loss (-5.3% today) after reporting strong Q4 results but soft 2014 guidance is explained by investor jitters over emerging markets.
  • Airlines based in emerging market powerhouses such as China, India, Indonesia and Turkey account for more than a third of the bulging order books at Boeing and Airbus (EADSF, EADSY) as carriers buy thousands of new fuel-efficient jets to satisfy demand driven by relatively high economic growth.
  • The sharp currency devaluations that have pushed up interest rates in some countries are raising concerns that growth could be slowed, forcing airlines to cancel or defer new planes, but Boeing's Jim McNerney seemed to shrug off concerns during his earnings call, saying he doesn't "see an epidemic" of currency volatility.
  • "Even a 20% move in currency isn't going to get in the way of providing [30% to 50%] improvement in overall economics that these planes have," the CEO said.
Comments (2)
  • phillipsvw
    , contributor
    Comment (1) | Send Message
     
    It snowed today in SE Idaho, should I sell my lawn mower?
    29 Jan, 07:52 PM Reply Like
  • joegillam
    , contributor
    Comments (364) | Send Message
     
    Turkey and Indonesia may falter a bit but China and India as well as many other countries on the Pacific Rim will be hungry for aircraft in the next few years. I'm comfortably long on BA. Don't worry, all of them will have to scramble to meet their orders.
    Joe In Georgia
    30 Jan, 09:59 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector