May 4, 2012
The following video is part of our "Motley Fool Conversations" series, in which industrials editor/analyst Brendan Byrnes and technology and media editor/analyst Andrew Tonner discuss topics across the investing world.
In today's edition, Brendan and Andrew discuss a couple of moves from two big aerospace players: Boeing and Delta. Boeing recently announced its upcoming 737 MAX will have a radical new winglet design that will make the jet 1.5% more fuel-efficient, on top of the 10%-12% fuel efficiency gain already realized by the MAX model. Boeing has been on a roll lately and is on track to beat Airbus in deliveries this year for the first time since 2002. The improved fuel efficiency of the 737 MAX should help Boeing expand on its already-strong 1,000 orders so far.
Delta is trying desperately to pare down its huge fuel bill and recently took the unprecedented step of buying a refinery to cut down on the price of jet fuel, which makes up 36% of its operating costs. It's a risky move, but one that could pay off in the long run for Delta.
Boeing gets about half of its revenue from outside the U.S., and since Europe is in shambles, many investors may be nervous about investing in a company that's internationally focused, but they shouldn't be. Emerging markets are giving new life to established American companies with deep pockets. As these industry titans look abroad for more sales, they aren't starting with a blank slate -- they're bringing their operational excellence to new markets and thriving. To uncover three of our favorite picks today, we invite you to read a copy of our free report: "3 American Companies Set to Dominate the World." The report won't be available forever, so we invite you to enjoy a free copy today. Click here to get your copy today!