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737 Plane Crash In Southern China Drops Boeing’s Shares By 4.5%

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American Airlines Boeing

In the early hours of Monday, a 737-800 Boeing aircraft of China Eastern Airlines (600115.SS), with 132 people on board, crashed in the mountains of southern China.

The plane reportedly crashed after a sudden descent from cruising altitude and till now, rescue workers are yet to find any sign of survivors.

The Civil Aviation Administration of China confirmed the plane crash.

“On March 21, 2022, a Boeing 737 of China Eastern Airlines lost contact over Wuzhou during the Kunming-Guangzhou flight. The plane has now been confirmed to have crashed. There were 132 people on board, including 123 passengers and 9 crew members,” the agency said.

According to the Aviation Safety Network database, the crash is China’s deadliest airline crash since 1994 and the deadliest ever for China Eastern Airlines.

However, since the crash, Investors King gathered that the U.S. planemaker, Boeing Co (BA.N) and its suppliers recorded a drop in their shares.

While Boeing’s stock fell by 4.5% in Monday trading, American Depositary Receipts (ADR)of China Eastern Airlines (CEA) declined by 6.6%. An ADR is the U.S.-listed stock in a foreign company.

According to Reuters, parts suppliers Spirit AeroSystems Holdings Inc (SPR.N), Hexcel Corp (HXL.N) and Triumph Group Inc (TGI.N) were down between 1% and 4%.

Yahoo Finace reports that shares of the Chicago-based company were down to $184.22 each on Monday morning from $192.83 at closing on Friday afternoon.

From 2013 to 2019, Boeing spent over $60 billion on dividends and stock buybacks, twice as much as the development costs of the 787.

In 2020, Boeing’s revenue was $11.8 billion as a result of the pandemic slump. Due to higher sales in other divisions and an influx in deliveries of commercial jetliners in 2021, revenue increased 44%, reaching nearly $17 billion.

Meanwhile, Chinese state media said the airline has grounded its 737-800 fleet, which according to the flight tracking website, had 109 such planes.

Boeing is among the largest global aerospace manufacturers. It is the third-largest defends contractor in the world based on 2020 revenue, and is the largest exporter in the United States by dollar value.

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Company News

Mobility Company Uber Increases Fares in Lagos Due to Unfriendly Economic Conditions

Mobility company Uber via an email recently disclosed to its drivers that it was increasing its fares in Lagos.

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Mobility company Uber via an email recently disclosed to its drivers that it was increasing its fares in Lagos.

The company disclosed that this increase in price was necessitated by unfriendly economic conditions, coupled with the increase in the price of fuel which will take effect on October 3, 2022.

According to the email sent, the base fare will increase from ₦340 ($0.78) to ₦450 ($1.04), while the minimum and per minute fare will go from ₦600 ($1.38) to ₦650 ($1.50) and ₦14 ($0.03) to ₦16 ($0.03), respectively.

This is not the first time the mobility company is increasing its fare, it should be recalled that on May 10, 2021 Investors King reported that Uber was increasing its fares by 13 percent in Lagos. According to the company, the increase was to ensure a reliable earning opportunity for driver-partners.

However, the company’s recent decision to once again increase its fares in Lagos may come as a surprise to users but it is in line with its activities in other countries where it has operations.

Lagos is not the only city that has witnessed an increase in fares. In August 2022, Bloomberg reported Uber was increasing its fares in London by 5%, with plans to do the same in other cities across the United Kingdom. 

Uber has not been the only ride-hailing player to increase its prices. A report by Rakuten Intelligence revealed that the cost of a ride on ride-hailing apps had increased 98% between 2018 and 2021, driven partly by a shortage of drivers.

But in recent times, the company has begun pushing for profitability. In an email to employees in May 2022, CEO Dara Khosrowshahi said, “we have to make sure our unit economics work before we go big.” The result of that has been an increase in fares.

However, in 2017 Uber reduced its fare shortly after Taxify, a growing competitor did the same. The company sent a message to its drivers via a mail which reads, “As of today, Uber has reduced fares by 40% in Lagos. This means you can travel for business or explore your city for less than ever before”.

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Tesla Records High Car Deliveries This Year But Failed to Meet Wallstreet Forecast

Tesla reportedly delivered 343,830 electric vehicles in the third quarter (Q3), a new record for the company this year

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Tesla Model 3 - Investors King

Automotive company Tesla reportedly delivered 343,830 electric vehicles in the third quarter (Q3), a new record for the company this year. However, the company still underperformed as it failed to meet Wallstreet projections.

Following the shutdown of its company in China, due to the country’s extended COVID-19 lockdown and challenges around opening factories, Tesla’s delivery fell to nearly 18% in the Second (Q2) of 2022 which took a toll on the company.

Despite the rebound and record number in Q3, there was also a larger-than-usual gap between production and delivery numbers. The company produced 365,923 vehicles in the third quarter.

The company disclosed that part of why it failed to hit certain delivery figures was due to logistical challenges which overshadowed its record deliveries.

Tesla said “it is becoming increasingly challenging to secure vehicle transportation capacity and at a reasonable cost,” but some analysts were also concerned about demand for high-ticket items due to the weakening global economy.

In other words, the car manufacturing company is going to try and evolve beyond its legendary end-of-the-quarter pushes. CEO Elon Musk tweeted that it is trying for a steadier approach, “Customer experience suffers when there is an end-of-quarter rush. Steady as she goes is the right move,” he tweeted.

According to a statement from the company, it said “As our production volumes continue to grow, it is becoming increasingly challenging to secure vehicle transportation capacity and at a reasonable cost during these peak logistics weeks.

“In Q3, we began transitioning to a more even regional mix of vehicle builds each week, which led to an increase in cars in transit at the end of the quarter. These cars have been ordered and will be delivered to customers upon arrival at their destination.”

The economy around the edges is still having a negative impact on Tesla that’s mostly logistical. It should be recalled that on April 21, 2022,  Investors King reported that Tesla realised $18.7 billion in revenue in the first quarter (Q1) of 2022 despite supply disruptions and delays experienced due to Chinese Covid-19 lockdown.

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Brands

Dangote Industries Wins ECOWAS’ Brand of The Decade Award

Dangote Industries Limited has won ECOWAS Outstanding Indigenous Conglomerate of the Decade

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Africa’s largest business conglomerate, Dangote Industries Limited has won ECOWAS Outstanding Indigenous Conglomerate of the Decade.

It was a show of accolades as the Dangote brand was named the number one brand by all standards with its Sugar and Cement production which has contributed tremendously to the infrastructure development not only in Nigeria but Africa in the last 10 years.

Speaking at the event which was held in Lagos, John Ajayi, Publisher/CEO of Marketing Edge Publications noted that the award to Dangote brands are in recognition of its leadership and domination in the various market segments and categories which span several countries in Africa. 

Mr Anthony Chiejina, Group chief, branding & communications officer, Dangote Industries noted that Dangote Industries remains at the forefront of African enterprise and that the brand, since its inception, has touched the lives of many by providing their basic needs.

Some of the awards won during the Marketing Edge Magazine’s 2022 summit included Outstanding Indigenous Conglomerate won by Dangote Industries Limited, Cement Brand of the Decade as well as Sugar Brand of the Decade

Investors King had earlier reported that Dangote Industries Ltd. (DIL) won the most admired brand in Africa for the fifth consecutive year in a row. 

During the award presentation, Group Chief Commercial Officer of Dangote Industrial Limited, Mr Rabiu Umar said “The company had risen a notch higher as a global brand with the export of Dangote Fertiliser to many countries of the world. People now identify with the brand and in all the countries where we operate, Dangote Cement has become a reference point.

 “We are touching lives by providing their basic needs and empowering Africans more than ever before, creating jobs, reducing capital flight, and helping the government to conserve foreign exchange drain by supporting different industrial and infrastructural projects of African governments.

We fervently believe that only Africans can develop Africa, and this gives us a stronger sense of relevance in all the countries where we have our operations”. He concluded.

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