Higher costs could slow their earnings

Article Excerpt

The shares of Boeing and Howmet have jumped about 50% in the past year as the easing of COVID-19 travel restrictions spurs demand for new aircraft. However, ongoing supply chain issues and rising costs for materials and labour will likely hold back earnings growth. BOEING CO. $211 remains a hold. The aircraft maker (New York symbol BA; Conservative Growth Portfolio, Manufacturing sector; Shares outstanding: 601.6 million; Market cap: $126.9 billion; Price-to-sales ratio: 1.7; Dividend suspended in June 2020; TSINetwork Rating: Extra Risk; www.boeing.com) is a leading manufacturer of commercial passenger jets. It also makes military- and space related equipment, including fighter planes and satellites. Boeing delivered 130 commercial airplanes in the three months ended March 31, 2023, up 36.8% from 95 a year earlier. As a result, its overall revenue rose 28.1%, to $17.92 billion from $13.99 billion. Higher demand for military equipment and maintenance services also contributed to that gain. The higher revenue helped Boeing cut its losses to $1.27 a share (or a..