Boeing Reports Second-Quarter Results and Raises 2011 EPS Guidance
CHICAGO, July 27, 2011 /PRNewswire-FirstCall/ –
- Earnings per share of $1.25 reported on revenue of $16.5 billion
- Operating cash flow of $1.6 billion reflects strong operating performance
- Cash and marketable securities of $8.8 billion provide strong liquidity
- Backlog of $323 billion is over four times current annual revenue projection
- 2011 earnings per share guidance increased to between $3.90 and $4.10 per share on strong core performance across businesses
Table 1. Summary Financial Results
Second Quarter
--------------
(Dollars in Millions, except
per share data) 2011 2010 Change
---------------------------- ---- ---- ------
Revenues $16,543 $15,573 6%
Earnings From Operations $1,534 $1,307 17%
Operating Margin 9.3% 8.4% 0.9 Pts
Net Income $941 $787 20%
Earnings per Share $1.25 $1.06 18%
Operating Cash Flow $1,596 $266 NM
------------------- ------ ---- ---
First Half
----------
(Dollars in Millions, except
per share data) 2011 2010 Change
---------------------------- ---- ---- ------
Revenues $31,453 $30,789 2%
Earnings From Operations $2,534 $2,481 2%
Operating Margin 8.1% 8.1% - Pts
Net Income $1,527 $1,306 17%
Earnings per Share $2.04 $1.76 16%
Operating Cash Flow $643 ($19) NM
------------------- ---- ---- ---
The Boeing Company (NYSE: BA) reported second-quarter net income of $0.9 billion, or $1.25 per share, on revenue of $16.5 billion. Operating margin of 9.3 percent reflects higher Commercial Airplanes volume and strong core performance across the company’s businesses, partially offset by higher pension expense. The company increased its 2011 earnings per share guidance to between $3.90 and $4.10 per share reflecting the strong core performance. Total company 2011 revenue and cash flow guidance is unchanged.
“Strong operational performance drove double-digit margins at both of our major businesses and produced outstanding results in the quarter,” said Jim McNerney, Boeing chairman, president and chief executive officer. “We also made major progress toward certification and delivery of the 787 Dreamliner and 747-8 and continued our disciplined increases in commercial airplane production rates. Our outlook for the year has strengthened as our team continues its relentless focus on productivity improvement, cash management and program execution.”
Table 2. Cash Flow
Second
Quarter First Half
------- ----------
(Millions) 2011 2010 2011 2010
---------- ---- ---- ---- ----
Operating Cash Flow $1,596 $266 $643 ($19)
Less Additions to Property,
Plant & Equipment ($345) ($257) ($762) ($443)
-----
Free Cash Flow* $1,251 $9 ($119) ($462)
--------------- ------ --- ----- -----
* Non-GAAP measure. A complete definition and reconciliation of
Boeing's use of non-GAAP measures, identified by an asterisk (*),
is found on page 7, "Non-GAAP Measure Disclosure."
Boeing’s quarterly operating cash flow was $1.6 billion, reflecting strong operating performance and continued investment in development programs. Free cash flow* was $1.3 billion in the quarter (Table 2).
Table 3. Cash, Marketable Securities and Debt
Balances
Quarter-End
-----------
(Billions) 2Q11 1Q11
---------- ---- ----
Cash $5.0 $5.7
Marketable Securities(1) $3.8 $2.1
---- ----
Total $8.8 $7.8
Debt Balances:
The Boeing Company $8.9 $9.0
Boeing Capital Corporation $2.7 $2.7
---- ----
Total Consolidated Debt $11.6 $11.7
----------------------- ----- -----
(1) Marketable securities consists primarily of
time deposits due within one year classified as
"short-term investments."
Cash and investments in marketable securities totaled $8.8 billion at quarter-end (Table 3), up from $7.8 billion at the beginning of the quarter. Debt was essentially unchanged in the quarter.
Total company backlog at quarter-end was $323 billion, down from $329 billion at the beginning of the quarter. Net orders for the quarter were $12 billion and included a significant mix of wide-body commercial airplanes. Backlog is up $2.7 billion from year-end, reflecting $35 billion of net orders in the first half of 2011.
Segment Results
Commercial Airplanes
Table 4. Commercial Airplanes Operating Results
Second
Quarter
-------
(Dollars in Millions) 2011 2010 Change
--------------------- ---- ---- ------
Commercial Airplanes
Deliveries 118 114 4%
Revenues $8,843 $7,433 19%
Earnings from
Operations $920 $683 35%
Operating Margins 10.4% 9.2% 1.2 Pts
----------------- ---- --- -------
First Half
----------
(Dollars in Millions) 2011 2010 Change
--------------------- ---- ---- ------
Commercial Airplanes
Deliveries 222 222 0%
Revenues $15,961 $14,901 7%
Earnings from
Operations $1,429 $1,362 5%
Operating Margins 9.0% 9.1% (0.1)Pts
----------------- --- --- --------
Boeing Commercial Airplanes second-quarter revenue increased by 19 percent to $8.8 billion on higher deliveries, improved model mix and higher services volume. Operating margin was 10.4 percent, reflecting the higher revenue and strong operating performance, partially offset by higher R&D (Table 4).
Flight testing activities on the 787 and 747-8 Freighter programs are nearing completion. During the quarter, both programs entered into Function and Reliability testing, while the 787 program also began Extended Operations testing. First deliveries of the 787 and 747-8 Freighter are expected later in the third quarter.
Total firm orders for the 787 at quarter-end were 827 airplanes from 57 customers. Commercial Airplanes booked 65 net orders during the quarter and 171 during the first half of 2011. Backlog remains strong with more than 3,300 airplanes valued at $262 billion.
Boeing Defense, Space & Security
Table 5. Defense, Space & Security Operating Results
Second
Quarter
-------
(Dollars in Millions) 2011 2010 Change
--------------------- ---- ---- ------
Revenues
Boeing Military Aircraft $3,642 $3,580 2%
Network & Space Systems $2,081 $2,354 (12%)
Global Services & Support $1,965 $2,049 (4%)
------ ------ ----
Total BDS Revenues $7,688 $7,983 (4%)
Earnings from Operations
Boeing Military Aircraft $386 $353 9%
Network & Space Systems $198 $167 19%
Global Services & Support $214 $191 12%
---- ---- ---
Total BDS Earnings from
Operations $798 $711 12%
Operating Margins 10.4% 8.9% 1.5 Pts
----------------- ---- --- -------
First Half
----------
(Dollars in Millions) 2011 2010 Change
--------------------- ---- ---- ------
Revenues
Boeing Military Aircraft $7,034 $6,821 3%
Network & Space Systems $4,430 $4,677 (5%)
Global Services & Support $3,841 $4,098 (6%)
------ ------
Total BDS Revenues $15,305 $15,596 (2%)
Earnings from Operations
Boeing Military Aircraft $755 $623 21%
Network & Space Systems $341 $341 0%
Global Services & Support $373 $411 (9%)
---- ----
Total BDS Earnings from
Operations $1,469 $1,375 7%
Operating Margins 9.6% 8.8% 0.8 Pts
----------------- --- --- -------
Boeing Defense, Space & Security’s second-quarter revenue was $7.7 billion, while operating margin was 10.4 percent (Table 5).
Boeing Military Aircraft (BMA) second-quarter revenue was $3.6 billion. Operating margin was 10.6 percent, reflecting strong operating performance. Last year’s results were impacted by a charge on the Airborne Early Warning & Control program. During the quarter, India signed an agreement for ten C-17s, which are expected to be on contract later this year, and BMA was awarded the U.S. Navy’s study contract for the Unmanned Carrier-Launched Airborne Surveillance and Strike Program.
Network & Space Systems (N&SS) second-quarter revenue decreased to $2.1 billion, due to funding reductions in Brigade Combat Team Modernization and lower SBInet volume. Operating margin was 9.5 percent, reflecting United Launch Alliance performance and a gain on the sale of property. During the quarter, the GPS Operational Control Segment entered service with the U.S. Air Force and the High Energy Laser program completed system integration.
Global Services & Support (GS&S) second-quarter revenue was $2.0 billion. Operating margin was 10.9 percent, reflecting strong performance in integrated logistics. During the quarter, GS&S was awarded modernization and upgrade contracts from the U.S. Air Force.
Backlog at Defense, Space & Security decreased to $61 billion on run-off of multi-year contracts, and remains nearly two times the unit’s expected 2011 revenue.
Additional Financial Information
Table 6. Additional Financial Information
Second
Quarter
-------
(Dollars in Millions) 2011 2010 Change
--------------------- ---- ---- ------
Revenues
Boeing Capital Corporation $147 $162 (9%)
Other segment $38 $44
Unallocated items and
eliminations ($173) ($49)
Earnings from Operations
Boeing Capital Corporation $62 $55 13%
Other segment ($58) ($72)
Unallocated items and
eliminations ($188) ($70)
Other income, net $14 $35
Interest and debt expense ($123) ($132)
Effective tax rate 33.9% 34.8%
------------------ ---- ----
First Half
----------
(Dollars in Millions) 2011 2010 Change
--------------------- ---- ---- ------
Revenues
Boeing Capital Corporation $290 $324 (10%)
Other segment $74 $80
Unallocated items and
eliminations ($177) ($112)
Earnings from Operations
Boeing Capital Corporation $114 $101 13%
Other segment ($80) ($122)
Unallocated items and
eliminations ($398) ($235)
Other income, net $27 $33
Interest and debt expense ($253) ($254)
Effective tax rate 33.7% 42.1%
------------------ ---- ----
During the quarter, Boeing Capital Corporation’s (BCC) portfolio balance declined to $4.4 billion, down from $4.5 billion at the beginning of the quarter on run-off and asset sales. BCC’s debt-to-equity ratio was unchanged at 5.0-to-1.
The “Other” segment includes unallocated activities of Engineering, Operations and Technology, Shared Services Group as well as certain intercompany guarantees provided to BCC.
The loss in unallocated items and eliminations increased primarily due to higher pension expense. Total pension expense for the second quarter was $389 million, as compared to $283 million in the same period last year. A total of $326 million was allocated to the operating segments in the quarter, up from $305 million in the same period last year, and $63 million was recognized in unallocated items, compared to a benefit of $22 million in the same period last year.
Outlook
The company’s 2011 financial guidance (Table 7) has been updated to reflect the strong core performance in both businesses.
Table 7. Financial Outlook 2011
(Dollars in Billions, except per-
share data) ----
---------------------------------
The Boeing Company
Revenue $68 - 71
Earnings Per Share (GAAP) $3.90 - 4.10
Operating Cash Flow (1) > $2.5
Boeing Commercial Airplanes
Deliveries (2) 485 - 495
Revenue $36 - 38
Operating Margin 8.0% - 8.5%
Boeing Defense, Space & Security
Revenue
Boeing Military Aircraft $14.7 - 15.0
Network & Space Systems $8.7 - 9.1
Global Services & Support $8.1 - 8.4
----------
Total BDS Revenue $31.5 - 32.5
Operating Margin
Boeing Military Aircraft ~ 9.5%
Network & Space Systems ~ 7%
Global Services & Support ~ 10.5%
-------
Total BDS Operating Margin ~ 9%
Boeing Capital Corporation
Portfolio Size Lower
Revenue ~ $0.5
Return on Assets > 1%
Research & Development $3.7 - 3.9
Capital Expenditures ~ $2.0
Pension Expense $1.8
--------------- ----
(1) After cash pension contributions of $0.5 billion and assuming new
aircraft financings under $0.5 billion.
(2) 2011 is sold out and includes the initial 787 and 747-8
deliveries (combined 25 to 30 units).
Boeing’s 2011 earnings per share guidance is increased to between $3.90 and $4.10 per share, up from between $3.80 and $4.00 per share.
Commercial Airplanes’ deliveries guidance is now between 485 and 495, down from between 485 and 500, on lower planned deliveries on development programs (now a combined 25 to 30 787 and 747-8 units, from 25 to 40 units). Operating margin is improved to between 8.0 and 8.5 percent, from between 7.5 and 8.5 percent, reflecting strong core performance and the lower planned development program deliveries.
Defense, Space & Security’s revenue guidance for 2011 is now between $31.5 and $32.5, from between $31.5 to $33 billion, on the current business environment. Defense, Space & Security’s operating margin is improved to approximately 9 percent, from between 8.5 and 9 percent, reflecting the strong performance to date.
Capital expenditures for 2011 have been reduced to approximately $2.0 billion, down from approximately $2.3 billion.
Non-GAAP Measure Disclosure
Management believes that the non-GAAP (Generally Accepted Accounting Principles) measures (indicated by an asterisk *) used in this report provide investors with important perspectives into the company’s ongoing business performance. The company does not intend for the information to be considered in isolation or as a substitute for the related GAAP measures. Other companies may define the measures differently. The following definitions are provided:
Free Cash Flow
Free cash flow is defined as GAAP operating cash flow less capital expenditures for property, plant and equipment additions. Management believes free cash flow provides investors with an important perspective on the cash available for shareholders, debt repayment, and acquisitions after making the capital investments required to support ongoing business operations and long term value creation. Free cash flow does not represent the residual cash flow available for discretionary expenditures as it excludes certain mandatory expenditures such as repayment of maturing debt. Management uses free cash flow internally to assess both business performance and overall liquidity. Table 2 provides a reconciliation between GAAP operating cash flow and free cash flow.
Forward-Looking Statements
This document contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “should,” “expects,” “intends,” “projects,” “plans,” “believes,” “estimates,” “targets,” “anticipates,” and similar expressions are used to identify these forward-looking statements. Examples of forward-looking statements include statements relating to our future financial condition and operating results, as well as any other statement that does not directly relate to any historical or current fact. Forward-looking statements are based on our current expectations and assumptions, which may not prove to be accurate. These statements are not guarantees and are subject to risks, uncertainties, and changes in circumstances that are difficult to predict. Many factors could cause actual results to differ materially and adversely from these forward-looking statements. Among these factors are risks related to: (1) general conditions in the economy and our industry, including those due to regulatory changes; (2) our reliance on our commercial customers, our suppliers and the worldwide market; (3) our commercial development programs, including the 787 and 747-8 commercial aircraft programs; (4) changing acquisition priorities of the U.S. government; (5) our dependence on U.S. government contracts; (6) our reliance on fixed-price contracts; (7) our reliance on cost-type contracts; (8) uncertainties concerning contracts that include in-orbit incentive payments; (9) changes in accounting estimates; (10) changes in the competitive landscape in our markets; (11) our non-U.S. operations, including sales to non-U.S. customers; (12) potential adverse developments in new or pending litigation and/or government investigations; (13) customer and aircraft concentration in Boeing Capital Corporation’s customer financing portfolio; (14) changes in our ability to obtain debt on commercially reasonable terms and at competitive rates in order to fund our operations and contractual commitments; (15) realizing the anticipated benefits of mergers, acquisitions, joint ventures, strategic alliances or divestitures; (16) the adequacy of our insurance coverage to cover significant risk exposures; (17) potential business disruptions related to physical security threats, information technology attacks or natural disasters; (18) work stoppages or other labor disruptions; (19) significant changes in discount rates and actual investment return on pension assets; and (20) potential environmental liabilities.
Additional information concerning these and other factors can be found in our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Any forward-looking statement speaks only as of the date on which it is made, and we assume no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law.
Contact:
Investor Relations: Scott Fitterer or Jennifer Mack (312) 544-2140
Communications: Chaz Bickers (312) 544-2002
The Boeing Company and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
Six months
ended
June 30
(Dollars in millions, except per share data) 2011 2010
-------------------------------------------- ---- ----
Sales of products $25,534 $24,940
Sales of services 5,919 5,849
-----------------
Total revenues 31,453 30,789
Cost of products (20,329) (19,937)
Cost of services (4,858) (4,665)
Boeing Capital Corporation interest expense (62) (82)
-------------------------------------------
Total costs and expenses (25,249) (24,684)
------------------------ ------- -------
6,204 6,105
Income from operating investments, net 150 113
General and administrative expense (1,736) (1,731)
Research and development expense, net (2,104) (2,001)
Gain/(loss) on dispositions, net 20 (5)
-------------------------------- --- ---
Earnings from operations 2,534 2,481
Other income, net 27 33
Interest and debt expense (253) (254)
-------------------------
Earnings before income taxes 2,308 2,260
Income tax expense (778) (952)
------------------ ---- ----
Net earnings from continuing operations 1,530 1,308
Net loss on disposal of discontinued operations,
net of taxes of $1, $1, $0 and $1 (3) (2)
Net earnings $1,527 $1,306
============ ====== ======
Basic earnings per share from continuing
operations $2.06 $1.78
Net loss on disposal of discontinued operations,
net of taxes
------------------------------------------------
Basic earnings per share $2.06 $1.78
======================== ===== =====
Diluted earnings per share from continuing
operations $2.04 $1.76
Net loss on disposal of discontinued operations,
net of taxes
Diluted earnings per share $2.04 $1.76
========================== ===== =====
Cash dividends paid per share $0.84 $0.84
============================= ===== =====
Weighted average diluted shares (millions) 750.8 741.9
========================================== ===== =====
Three months
ended
June 30
(Dollars in millions, except per share data) 2011 2010
-------------------------------------------- ---- ----
Sales of products $13,640 $12,624
Sales of services 2,903 2,949
-----------------
Total revenues 16,543 15,573
Cost of products (10,823) (10,115)
Cost of services (2,348) (2,384)
Boeing Capital Corporation interest expense (29) (41)
-------------------------------------------
Total costs and expenses (13,200) (12,540)
------------------------ ------- -------
3,343 3,033
Income from operating investments, net 88 54
General and administrative expense (870) (778)
Research and development expense, net (1,047) (1,001)
Gain/(loss) on dispositions, net 20 (1)
-------------------------------- --- ---
Earnings from operations 1,534 1,307
Other income, net 14 35
Interest and debt expense (123) (132)
-------------------------
Earnings before income taxes 1,425 1,210
Income tax expense (483) (421)
------------------ ---- ----
Net earnings from continuing operations 942 789
Net loss on disposal of discontinued operations,
net of taxes of $1, $1, $0 and $1 (1) (2)
Net earnings $941 $787
============ ==== ====
Basic earnings per share from continuing
operations $1.27 $1.07
Net loss on disposal of discontinued operations,
net of taxes
------------------------------------------------
Basic earnings per share $1.27 $1.07
======================== ===== =====
Diluted earnings per share from continuing
operations $1.25 $1.06
Net loss on disposal of discontinued operations,
net of taxes
Diluted earnings per share $1.25 $1.06
========================== ===== =====
Cash dividends paid per share $0.42 $0.42
============================= ===== =====
Weighted average diluted shares (millions) 752.6 742.9
========================================== ===== =====
The Boeing Company and Subsidiaries
Consolidated Statements of Financial Position
(Unaudited)
December
June 30 31
(Dollars in millions, except per share data) 2011 2010
Assets
Cash and cash equivalents $5,050 $5,359
Short-term and other investments 3,752 5,158
Accounts receivable, net 6,162 5,422
Current portion of customer financing, net 260 285
Deferred income taxes 35 31
Inventories, net of advances and progress
billings 29,094 24,317
Total current assets 44,353 40,572
Customer financing, net 4,217 4,395
Property, plant and equipment, net of
accumulated
depreciation of $13,570 and $13,322 9,044 8,931
Goodwill 4,949 4,937
Acquired intangible assets, net 3,141 2,979
Deferred income taxes 3,697 4,031
Investments 1,117 1,111
Pension plan assets, net 5 6
Other assets, net of accumulated amortization
of $659 and $630 1,596 1,603
--------------------------------------------- ----- -----
Total assets $72,119 $68,565
======= =======
Liabilities and equity
Accounts payable $8,262 $7,715
Accrued liabilities 13,570 13,802
Advances and billings in excess of related
costs 12,948 12,323
Deferred income taxes and income taxes payable 1,286 607
Short-term debt and current portion of long-
term debt 1,304 948
-------------------------------------------- ----- ---
Total current liabilities 37,370 35,395
Accrued retiree health care 8,036 8,025
Accrued pension plan liability, net 10,155 9,800
Non-current income taxes payable 383 418
Other long-term liabilities 1,027 592
Long-term debt 10,324 11,473
Shareholders' equity:
Common stock, par value $5.00 - 1,200,000,000
shares authorized; 5,061 5,061
1,012,261,159 shares issued
Additional paid-in capital 3,945 3,866
Treasury stock, at cost - 271,689,849 and
277,002,059 shares (16,859) (17,187)
Retained earnings 25,681 24,784
Accumulated other comprehensive loss (13,095) (13,758)
Total shareholders' equity 4,733 2,766
Noncontrolling interest 91 96
----------------------- --- ---
Total equity 4,824 2,862
------------ ----- -----
Total liabilities and equity $72,119 $68,565
============================ ======= =======
The Boeing Company and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
Six months ended
June 30
(Dollars in millions) 2011 2010
--------------------- ---- ----
Cash flows - operating activities:
Net earnings $1,527 $1,306
Adjustments to reconcile net earnings to
net cash provided/(used)
by operating activities:
Non-cash items -
Share-based plans expense 96 130
Depreciation 710 743
Amortization of acquired intangible assets 99 111
Amortization of debt discount/premium and
issuance costs 7 10
Investment/asset impairment charges, net 16 20
Customer financing valuation provision (65) 5
Loss on disposal of discontinued operations 4 3
(Gain)/loss on dispositions, net (20) 5
Other charges and credits, net 223 45
Excess tax benefits from share-based
payment arrangements (32) (15)
Changes in assets and liabilities -
Accounts receivable (747) (827)
Inventories, net of advances and progress
billings (4,889) (3,425)
Accounts payable 1,134 (129)
Accrued liabilities (268) 266
Advances and billings in excess of related
costs 626 (66)
Income taxes receivable, payable and
deferred 685 760
Other long-term liabilities 54 255
Pension and other postretirement plans 1,199 705
Customer financing, net 210 279
Other 74 (200)
-----
Net cash provided/(used) by operating
activities 643 (19)
------------------------------------- --- ---
Cash flows - investing activities:
Property, plant and equipment additions (762) (443)
Property, plant and equipment reductions 19 22
Acquisitions, net of cash acquired (16) (24)
Contributions to investments (4,454) (7,101)
Proceeds from investments 5,902 3,557
Reimbursement of Sea Launch guarantee
payments 40
Receipt of economic development program
funds 69 57
Net cash provided/(used) by investing
activities 758 (3,892)
------------------------------------- --- ------
Cash flows - financing activities:
New borrowings 36 26
Debt repayments (851) (88)
Repayments of distribution rights financing (406) (137)
Stock options exercised, other 80 61
Excess tax benefits from share-based
payment arrangements 32 15
Employee taxes on certain share-based
payment arrangements (18) (18)
Dividends paid (620) (637)
Net cash used by financing activities (1,747) (778)
------------------------------------- ------ ----
Effect of exchange rate changes on cash and
cash equivalents 37 (58)
------------------------------------------- --- ---
Net decrease in cash and cash equivalents (309) (4,747)
Cash and cash equivalents at beginning of
year 5,359 9,215
----------------------------------------- ----- -----
Cash and cash equivalents at end of period $5,050 $4,468
========================================== ====== ======
The Boeing Company and Subsidiaries
Summary of Business Segment Data
(Unaudited)
Six months ended
June 30
(Dollars in millions) 2011 2010
--------------------- ---- ----
Revenues:
Commercial Airplanes $15,961 $14,901
Boeing Defense, Space & Security:
Boeing Military Aircraft 7,034 6,821
Network & Space Systems 4,430 4,677
Global Services & Support 3,841 4,098
------------------------- ----- -----
Total Boeing Defense, Space & Security 15,305 15,596
Boeing Capital Corporation 290 324
Other segment 74 80
Unallocated items and eliminations (177) (112)
----------------------------------
Total revenues $31,453 $30,789
============== ======= =======
Earnings from operations:
Commercial Airplanes $1,429 $1,362
Boeing Defense, Space & Security:
Boeing Military Aircraft 755 623
Network & Space Systems 341 341
Global Services & Support 373 411
-------------------------
Total Boeing Defense, Space & Security 1,469 1,375
Boeing Capital Corporation 114 101
Other segment (80) (122)
Unallocated items and eliminations (398) (235)
---------------------------------- ---- ----
Earnings from operations 2,534 2,481
Other income, net 27 33
Interest and debt expense (253) (254)
-------------------------
Earnings before income taxes 2,308 2,260
Income tax expense (778) (952)
------------------ ---- ----
Net earnings from continuing operations 1,530 1,308
Net loss on disposal of discontinued operations,
net of taxes of $1, $1, $0 and $1 (3) (2)
Net earnings $1,527 $1,306
============ ====== ======
Research and development expense, net:
Commercial Airplanes $1,558 $1,391
Boeing Defense, Space & Security:
Boeing Military Aircraft 250 320
Network & Space Systems 211 221
Global Services & Support 62 69
------------------------- --- ---
Total Boeing Defense, Space & Security 523 610
Other segment 23
Total research and development expense, net $2,104 $2,001
=========================================== ====== ======
Unallocated items and eliminations:
Share-based plans $(44) $(90)
Deferred compensation (60) (37)
Pension (158) 43
Post-retirement (33) (24)
Capitalized interest (31) (28)
Eliminations and other (72) (99)
---------------------- --- ---
Total $(398) $(235)
===== ===== =====
Three months
ended
June 30
(Dollars in millions) 2011 2010
--------------------- ---- ----
Revenues:
Commercial Airplanes $8,843 $7,433
Boeing Defense, Space & Security:
Boeing Military Aircraft 3,642 3,580
Network & Space Systems 2,081 2,354
Global Services & Support 1,965 2,049
------------------------- ----- -----
Total Boeing Defense, Space & Security 7,688 7,983
Boeing Capital Corporation 147 162
Other segment 38 44
Unallocated items and eliminations (173) (49)
----------------------------------
Total revenues $16,543 $15,573
============== ======= =======
Earnings from operations:
Commercial Airplanes $920 $683
Boeing Defense, Space & Security:
Boeing Military Aircraft 386 353
Network & Space Systems 198 167
Global Services & Support 214 191
-------------------------
Total Boeing Defense, Space & Security 798 711
Boeing Capital Corporation 62 55
Other segment (58) (72)
Unallocated items and eliminations (188) (70)
---------------------------------- ---- ---
Earnings from operations 1,534 1,307
Other income, net 14 35
Interest and debt expense (123) (132)
-------------------------
Earnings before income taxes 1,425 1,210
Income tax expense (483) (421)
------------------ ---- ----
Net earnings from continuing operations 942 789
Net loss on disposal of discontinued operations,
net of taxes of $1, $1, $0 and $1 (1) (2)
Net earnings $941 $787
============ ==== ====
Research and development expense, net:
Commercial Airplanes $771 $693
Boeing Defense, Space & Security:
Boeing Military Aircraft 125 158
Network & Space Systems 107 115
Global Services & Support 30 35
------------------------- --- ---
Total Boeing Defense, Space & Security 262 308
Other segment 14
Total research and development expense, net $1,047 $1,001
=========================================== ====== ======
Unallocated items and eliminations:
Share-based plans $(22) $(43)
Deferred compensation (10) 44
Pension (63) 22
Post-retirement (14) (13)
Capitalized interest (16) (18)
Eliminations and other (63) (62)
---------------------- --- ---
Total $(188) $(70)
===== ===== ====
The Boeing Company and Subsidiaries
Operating and Financial Data
(Unaudited)
Six months Three months
ended ended
Deliveries June 30 June 30
------- -------
Commercial Airplanes 2011 2010 2011 2010
-------------------- ---- ---- ---- ----
737 181 181 94 95
767 9 6 5 3
777 32 35 19 16
Total 222 222 118 114
===== === === === ===
Boeing Defense, Space &
Security
-----------------------
Boeing Military
Aircraft
F/A-18 Models 25 24 12 11
F-15E Eagle 8 7 4 4
C-17 Globemaster 7 6 4 3
KC-767 Tanker 1
CH-47 Chinook 16 8 9 6
AH-64 Apache 9 5
AEW&C 3 3
Network & Space Systems
Delta IV 1
Commercial and Civil
Satellites 2 1
Military Satellites 1 1 1
June March December
30 31 31
Contractual backlog (Dollars in
billions) 2011 2011 2010
------------------------------- ---- ---- ----
Commercial Airplanes $259.9 $260.9 $255.6
Boeing Defense, Space &
Security:
Boeing Military Aircraft 25.7 26.5 25.1
Network & Space Systems 9.4 9.4 9.6
Global Services & Support 13.0 13.9 13.7
------------------------- ---- ---- ----
Total Boeing Defense, Space &
Security 48.1 49.8 48.4
Total contractual backlog $308.0 $310.7 $304.0
========================= == == ==
Unobligated backlog $15.6 $18.3 $16.9
=================== ===== ===== =====
Total backlog $323.6 $329.0 $320.9
============= ====== ====== ======
Workforce 166,900 163,800 160,500
========= ======= ======= =======
SOURCE Boeing