Boeing: Portfolio manager talks 737 Max, headwinds, and future

About this Video

• Video Title: Boeing: Portfolio manager talks 737 Max, headwinds, and future
• Channel: Yahoo Finance
• Speakers: Tony Bankraftoft (portfolio manager at Cabelli Funds), Matt (Yahoo Finance Host), Brad (Yahoo Finance Host)
• Duration: 00:06:22

Introduction

This Yahoo Finance video discusses Boeing's first-quarter results, focusing on the 737 Max production ramp-up, the impact of tariffs, and the company's overall financial performance and future prospects. A portfolio manager analyzes Boeing's situation, addressing challenges and potential growth areas.

Key Takeaways

• Boeing's First Quarter Loss: Boeing reported a narrower-than-expected loss for the first quarter.
• 737 Max Production: Boeing aims to reach maximum 737 Max aircraft production later in the year, a crucial factor in improving cash flow. The 38 planes/month production rate is a key target.
• Tariff Headwinds: Tariffs remain a significant headwind for Boeing, impacting its international exports (80% of its products). Retaliatory tariffs from countries like China pose further challenges.
• Non-Core Business Divestment: Boeing's strategic move to divest non-core businesses (like its digital publications business) is seen as a positive step to improve financial flexibility and focus on core operations.
• Long-Term Growth in Aerospace and Defense: The aerospace and defense industry is considered a secular growth industry with a large backlog of orders and increasing global air travel demand. Tariffs are less likely to significantly impact long-term demand.