Relative Performance Between Industry Peers

Currency fluctuations can mean the outperformance or underperformance of industry competitors. Take Boeing (NYSE:BA) and France-based Airbus for example; they realized a divergence in profitability between 2006 and 2007 when the euro appreciated 20% against the U.S. dollar. Boeing, the U.S.-based airplane manufacturer, saw a sharp rise in orders for its Dreamliner jet. There was a notable shift in interest by foreign buyers once the euro rose from 1.18 to 1.42. Boeing's European competitor, Airbus, on the other hand, suffered greatly due to the strengthening euro. In the third quarter of 2007, Airbus announced that it would be cutting 10,000 jobs and accelerating production of a new superjumbo jet to reverse an $810 million loss.