Boeing’s stock prices and its Dreamliner 787 are soaring this quarter.
The Boeing Company has shown that it can stand the test of time, posting its highest stock prices since 2007 this month. After crashing to as low as $30.10 per share in 2009, the aerospace enterprise ended last week at nearly $98.00, closer to its all-time high of $104.99 in September 2007 than at any time since the economic recession. This is in the midst of battling issues with the newest Dreamliner, the 787, and a plan to lay-off up to 1,700 engineers this year.
The Dreamliner 787 jet was grounded in January due to a problem with the battery design, which was causing the battery to emit smoke and in some cases catch fire. Despite only having sold one 787 this quarter, opposed to the five that were sold in the same quarter this year, Boeing’s earnings beat quarterly estimates. Planes in Japan are already flying the 787 planes and United Airlines is resuming flights this week.
Boeing is cost-cutting, issuing over 700 pink slips last month in Washington State.
Image: 401 (K) 2012 / Flickr CC
Cost cutting is one way of improving quarterly earnings, and with production on the new plane stabilizing, Boeing issued about 700 pink slips in the Washington state area last month, with plans to cut as many as 1,700 jobs this year. Some industry professionals are speculating that Boeing is also looking to shift jobs from strong union states like Washington and Illinois to more industry friendly states like South Carolina, and this round of layoffs may be a way for Boeing to find cheaper labor in the long run.
Even with the 787 hiccups, it is clear The Boeing Company will not fade away or even find an ill fate. The aviation giant will continue to be the driving force in flight travel and has proven the ability to get through hard times and turn finances around for the better.
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