Boeing for the past number of years has been the biggest contributor to GNP of selling goods outside of the US. Think about all the manufacturing companies in the US and Boeing’s planes were the biggest contributor or Boeing sold many planes per year.
Boeing’s new plane the 737 Max was on track to continue being the number one exporter in the country, then a couple of crashes happened and the problem was in the computer system. All the countries followed the US and grounded the plane. Thank goodness for COVID meant that Boeing had lots of time to fix the problem. The 737 Max was going to be the cash cow for Boeing for the next 10 plus years.
In an article by Rachit Vats and Eric M Johnson of Reuters, Boeing secured its firs 737 Max order in 2020. Due to COVID, Boeing has received 445 cancelled orders in 2020. It does have a back log of $409 billion in aircraft.
Boeing sold the plane to Poland’s Enter Air. Brokerage company Jefferies said in August, it expects Boeing to deliver 138 aircraft in 2020 down from 380 in 2019.
Linking to dividend paying companies, although the 737 Max is expected to be the cash cow for Boeing, the company is large and diversified enough to deliver airplanes to the domestic,military and space markets. The company continued although not at a pace expected. Boeing has the capability to continue to make profits even though its cash cow was down. It was good news for Boeing to sell some planes and once people feel safe on a plane and can and will fly for business and leisure travel, the stocks will do better. For your investments, how diversified are you companies, could they stand to lose their cash cows?
There are more questions than answers, till the next time – to raising questions.