Boeing's Huge Commercial Airplanes Backlog Will Feed Its Growth In The
Coming Years
Boeing's revenues and earnings are set to grow in 2014
as it delivers more airplanes to airlines on the back of its highest backlog in
years. At the end of January 2014, the airplane manufacturer had a backlog of
5,070 commercial airplanes, which is equivalent to around seven years of its
production at current rates. We figure driven by this record backlog, Boeing BA
+1.54% will continue to raise its production rates through 2014 and the next few
years. In turn, these higher production rates will drive growth in the company's
commercial airplanes segment, which constituted more than 60% of its top line
last year. Looking back, over the past three to four years, this trend has been
the primary driver of growth at Boeing's commercial airplanes segment where both
revenues and earnings have grown in double digits annually.
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