CHICAGO, April 26, 2017
/PRNewswire/ --
- GAAP EPS of $2.34 and core EPS
(non-GAAP)* of $2.01 on solid
execution
- Revenue of $21.0 billion
reflecting 210 commercial and defense aircraft deliveries and
services
- Strong operating cash flow of $2.1
billion; repurchased 14.9 million shares for $2.5 billion
- Backlog grew to $480 billion,
including $27 billion of net orders
during the quarter
- Cash and marketable securities of $9.2 billion provide strong liquidity
- Revenue, margin, and operating cash guidance reaffirmed; EPS
guidance increased by $0.10 on tax
benefit
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Table 1. Summary
Financial Results
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First
Quarter
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(Dollars in
Millions, except per share data)
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2017
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2016
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Change
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Revenues
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$20,976
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$22,632
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(7)%
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GAAP
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Earnings From
Operations
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$2,024
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$1,788
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13%
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Operating
Margin
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9.6%
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7.9%
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1.7
Pts
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Net
Earnings
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$1,451
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$1,219
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19%
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Earnings Per
Share
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$2.34
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$1.83
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28%
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Operating Cash
Flow
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$2,094
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$1,275
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64%
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Non-GAAP*
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Core Operating
Earnings
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$1,709
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$1,694
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1%
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Core Operating
Margin
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8.1%
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7.5%
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0.6
Pts
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Core Earnings Per
Share
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$2.01
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$1.74
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16%
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*
Non-GAAP measures. Complete
definitions of Boeing's non-GAAP measures are on page 6, "Non-GAAP
Measures Disclosures."
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The Boeing Company [NYSE: BA] reported higher first-quarter
earnings and operating cash flow compared to the previous year,
driven by solid execution on production programs and services
(Table 1). First-quarter GAAP earnings per share increased to
$2.34 and core earnings per share
(non-GAAP)* increased to $2.01.
Revenue decreased to $21.0 billion,
reflecting the timing of commercial and defense aircraft
deliveries.
For the full year, GAAP earnings per share guidance increased to
between $10.35 and $10.55 from
$10.25 and $10.45 and core earnings
per share (non-GAAP)* guidance increased to between $9.20 and $9.40 from $9.10
and $9.30, primarily driven by a lower-than-expected tax
rate.
"With a sharp focus on performance and productivity, our team
delivered another quarter of solid financial results, including
year-over-year earnings growth and strong operating cash flow,"
said Boeing Chairman, President and Chief Executive Officer
Dennis Muilenburg. "In turn, we
continued to position Boeing for growth with investments in new
products and services, innovation, and our people, while again
demonstrating our commitment to return significant cash to our
shareholders."
"We also achieved major milestones, including the certification
of the new 737 MAX 8 and first flight of the 787-10 Dreamliner, and
we captured a $3.4 billion contract
award for 268 Apache helicopters."
"We remain on track to achieve our full-year revenue, earnings
and cash flow targets as our teams deliver on our large and diverse
order backlog. As we do so, we're focused on accelerating
productivity, quality and safety improvements, strengthening
execution on development programs, and capturing new business
opportunities."
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Table 2. Cash
Flow
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First
Quarter
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(Millions)
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2017
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2016
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Operating Cash
Flow
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$2,094
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$1,275
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Less Additions to
Property, Plant & Equipment
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($466)
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($748)
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Free Cash
Flow*
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$1,628
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$527
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* Non-GAAP measures. Complete definitions of
Boeing's non-GAAP measures are on page 6, "Non-GAAP Measures
Disclosures."
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Operating cash flow in the quarter of $2.1 billion was driven by solid operating
performance and timing of receipts and expenditures (Table 2).
During the quarter, the company repurchased 14.9 million shares for
$2.5 billion, leaving $11.5 billion remaining under the current
repurchase authorization which is expected to be completed over
approximately the next two years. The company also paid
$868 million in dividends in the
quarter, reflecting a 30 percent increase in dividends per share
compared to the same period of the prior year.
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Table 3. Cash,
Marketable Securities and Debt Balances
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Quarter-End
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(Billions)
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Q1
17
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Q4
16
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Cash
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$8.2
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$8.8
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Marketable
Securities1
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$1.0
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$1.2
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Total
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$9.2
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$10.0
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Debt
Balances:
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The Boeing Company,
net of intercompany loans to BCC
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$7.7
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$7.1
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Boeing Capital,
including intercompany loans
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$3.1
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$2.9
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Total Consolidated
Debt
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$10.8
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$10.0
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1
Marketable securities consists
primarily of time deposits due within one year classified as
"short-term investments."
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Cash and investments in marketable securities totaled
$9.2 billion, down from $10.0 billion at the beginning of the quarter
(Table 3). Debt was $10.8 billion, up
from the beginning of the quarter, primarily due to the issuance of
new debt.
Total company backlog at quarter-end was $480 billion, up from $473
billion at the beginning of the quarter, and included net
orders for the quarter of $27
billion.
Segment Results
Commercial Airplanes
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Table 4.
Commercial Airplanes
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First
Quarter
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(Dollars in
Millions)
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2017
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2016
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Change
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Commercial
Airplanes Deliveries
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169
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176
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(4)%
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Revenues
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$14,305
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$14,399
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(1)%
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Earnings from
Operations
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$1,215
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$1,033
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18%
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Operating
Margin
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8.5%
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7.2%
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1.3
Pts
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Commercial Airplanes first-quarter revenue was $14.3 billion on services growth, offset by lower
planned 737 deliveries, as we prepare for 737 MAX entry into
service in May (Table 4). First-quarter operating margin increased
to 8.5 percent, reflecting improved performance on production and
services programs, cost growth on the initial production of KC-46
Tanker aircraft, and less favorable delivery mix.
During the quarter, Boeing successfully completed first flight
of the 787-10 Dreamliner. The 737 program rolled out the first 737
MAX 9 and received FAA certification for the 737 MAX 8. Demand
continues to be strong for the 737 MAX with more than 3,700 orders
since launch.
Commercial Airplanes booked 198 net orders during the quarter.
Backlog remains robust with more than 5,700 airplanes valued at
$417 billion.
Defense, Space & Security
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Table 5. Defense,
Space & Security
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First
Quarter
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(Dollars in
Millions)
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2017
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2016
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Change
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Revenues
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Boeing Military
Aircraft
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$2,636
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$3,659
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(28)%
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Network &
Space Systems
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$1,564
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$1,735
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(10)%
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Global
Services & Support
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$2,332
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$2,562
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(9)%
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Total BDS
Revenues
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$6,532
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$7,956
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(18)%
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Earnings from
Operations
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Boeing Military
Aircraft
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$321
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$334
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(4)%
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Network &
Space Systems
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$98
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$148
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(34)%
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Global
Services & Support
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$318
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$340
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(6)%
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Total BDS Earnings
from Operations
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$737
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$822
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(10)%
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Operating
Margin
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11.3%
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10.3%
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1.0
Pts
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Defense, Space & Security first-quarter revenue was
$6.5 billion (Table 5). First-quarter
operating margin increased to 11.3 percent, reflecting improved
performance at BMA.
Boeing Military Aircraft (BMA) first-quarter revenue was
$2.6 billion, reflecting lower
planned deliveries, and operating margin increased to 12.2 percent
on improved performance. During the quarter, BMA was awarded a
contract for 268 AH-64E Apache helicopters from the U.S. Army, a
contract for 17 P-8A Poseidon aircraft from the U.S. Navy, Royal
Australian Air Force, and the U.K. Royal Air Force, and a contract
from the U.S. Air Force for an additional 15 KC-46 Tanker
aircraft.
Network & Space Systems (N&SS) first-quarter revenue was
$1.6 billion, reflecting lower volume
on Commercial Crew. Operating margin was 6.3 percent driven by
lower satellite services volume and investments in development
efforts. During the quarter, N&SS announced an order for a 702
satellite with a dual payload from SKY Perfect JSAT and
Kacific.
Global Services & Support (GS&S) first-quarter revenue
was $2.3 billion, reflecting timing
of contracts. Operating margin increased to 13.6 percent largely
reflecting improved performance. During the quarter, GS&S
was awarded a contract from the Republic of Korea Air Force to
continue long-term sustainment of F-15 aircraft over the next five
years.
Backlog at Defense, Space & Security was $63 billion, of which 34 percent represents
orders from international customers.
Additional Financial Information
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Table 6.
Additional Financial Information
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First
Quarter
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(Dollars in
Millions)
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2017
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2016
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Revenues
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Boeing
Capital
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$92
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$64
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Unallocated items,
eliminations and other
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$47
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$213
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Earnings from
Operations
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Boeing
Capital
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$39
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$5
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Unallocated
pension/postretirement
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$315
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$94
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Other unallocated
items and eliminations
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($282)
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($166)
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Other
(loss)/income, net
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$22
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$26
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Interest and debt
expense
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($87)
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($73)
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Effective tax
rate
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25.9%
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30.0%
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At quarter-end, Boeing Capital's net portfolio balance was
$4.0 billion. Total pension expense
for the first quarter was $334
million, down from $629
million in the same period of the prior year. Unallocated
items, eliminations and other revenue decreased primarily due to
the elimination of intercompany revenue for one aircraft delivered
under operating lease. The effective tax rate for the first quarter
decreased from the same period in the prior year due to
higher-than-expected tax benefits related to share-based
compensation in the first quarter of 2017.
Outlook
The company's 2017 updated financial and delivery guidance
(Table 7) reflects continued solid performance across the company
and the impact of the lower-than-expected tax rate.
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Table 7. 2017
Financial Outlook
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Current
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Prior
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(Dollars in
Billions, except per share data)
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Guidance
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Guidance
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The Boeing
Company
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Revenue
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$90.5 -
92.5
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$90.5 -
92.5
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GAAP Earnings Per
Share
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$10.35 -
10.55
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$10.25 -
10.45
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Core Earnings Per
Share*
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$9.20 -
9.40
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$9.10 -
9.30
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Operating Cash
Flow
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~$10.75
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~$10.75
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Commercial
Airplanes
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Deliveries
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760 - 765
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760 - 765
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Revenue
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$62.5 -
63.5
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$62.5 -
63.5
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Operating
Margin
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9.5% -
10.0
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9.5% -
10.0
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Defense, Space
& Security
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Revenue
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Boeing Military
Aircraft
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~$11.5
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~$11.5
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Network &
Space Systems
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~$7.0
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~$7.0
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Global
Services & Support
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~$10.0
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~$10.0
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Total BDS
Revenue
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$28.0 -
29.0
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$28.0 -
29.0
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Operating
Margin
|
|
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Boeing Military
Aircraft
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~12.0%
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~12.0%
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Network &
Space Systems
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~9.0%
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~9.0%
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Global
Services & Support
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>12.5%
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>12.5%
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Total BDS Operating
Margin
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~11.5%
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~11.5%
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Boeing
Capital
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Portfolio
Size
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Stable
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Stable
|
Revenue
|
~$0.3
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~$0.3
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Pre-Tax
Earnings
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~$0.05
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~$0.05
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Research &
Development
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~ $3.6
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~ $3.6
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Capital
Expenditures
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~ $2.3
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~ $2.3
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Pension Expense
1
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~ $0.7
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~ $0.7
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Effective Tax
Rate
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~
31.0%
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~ 32.0%
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1 Approximately ($0.9) billion is expected to be
recorded in unallocated items and eliminations
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* Non-GAAP measures.
Complete definitions of Boeing's non-GAAP measures are on page 6,
"Non-GAAP Measures Disclosures."
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Non-GAAP Measures Disclosures
We supplement the reporting of our financial information
determined under U.S. generally accepted accounting principles
(GAAP) with certain non-GAAP financial information. The non-GAAP
financial information presented excludes certain significant items
that may not be indicative of, or are unrelated to, results from
our ongoing business operations. We believe that these non-GAAP
measures provide investors with additional insight into the
company's ongoing business performance. These non-GAAP measures
should not be considered in isolation or as a substitute for the
related GAAP measures, and other companies may define such measures
differently. We encourage investors to review our financial
statements and publicly-filed reports in their entirety and not to
rely on any single financial measure. The following definitions are
provided:
Core Operating Earnings, Core Operating Margin and Core Earnings
Per Share
Core operating earnings is defined as GAAP earnings from
operations excluding unallocated pension and post-retirement
expense. Core operating margin is defined as core operating
earnings expressed as a percentage of revenue. Core earnings per
share is defined as GAAP diluted earnings per share
excluding the net earnings per share impact of unallocated
pension and post-retirement expense. Unallocated pension and
post-retirement expense represents the portion of pension and
other post-retirement costs that are not recognized by business
segments for segment reporting purposes. Pension costs, comprising
service and prior service costs computed in accordance with
Generally Accepted Accounting Principles in the United States of America (GAAP) are
allocated to Commercial Airplanes. Pension costs allocated to BDS
segments are computed in accordance with U.S. Government Cost
Accounting Standards (CAS), which employ different actuarial
assumptions and accounting conventions than GAAP. CAS costs are
allocable to government contracts. Other postretirement benefit
costs are allocated to all business segments based on CAS, which is
generally based on benefits paid. Management uses core operating
earnings, core operating margin and core earnings per share for
purposes of evaluating and forecasting underlying business
performance. Management believes these core earnings measures
provide investors additional insights into operational performance
as they exclude unallocated pension and post-retirement costs,
which primarily represent costs driven by market factors and costs
not allocable to government contracts. A reconciliation between the
GAAP and non-GAAP measures is provided on page 13.
Free Cash Flow
Free cash flow is defined as GAAP operating cash flow
without 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 as a measure to
assess both business performance and overall liquidity. Table 2
provides a reconciliation between GAAP operating cash flow and free
cash flow.
Caution Concerning Forward-Looking
Statements
This press release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995. Words such as "may," "should," "expects," "intends,"
"projects," "plans," "believes," "estimates," "targets,"
"anticipates," and similar expressions generally 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 expectations and assumptions that we
believe to be reasonable when made, but that 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 airline
customers; (3) the overall health of our aircraft production
system, planned production rate increases across multiple
commercial airline programs, our commercial development and
derivative aircraft programs, and our aircraft being subject to
stringent performance and reliability standards; (4) changing
budget and appropriation levels and 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) our dependence on our
subcontractors and suppliers, as well as the availability of raw
materials, (10) changes in accounting estimates; (11) changes in
the competitive landscape in our markets; (12) our non-U.S.
operations, including sales to non-U.S. customers; (13) potential
adverse developments in new or pending litigation and/or government
investigations; (14) customer and aircraft concentration in Boeing
Capital's customer financing portfolio; (15) changes in our ability
to obtain debt on commercially reasonable terms and at competitive
rates in order to fund our operations and contractual commitments;
(16) realizing the anticipated benefits of mergers, acquisitions,
joint ventures/strategic alliances or divestitures; (17) the
adequacy of our insurance coverage to cover significant risk
exposures; (18) potential business disruptions, including those
related to physical security threats, information technology or
cyber-attacks, epidemics, sanctions or natural disasters; (19) work
stoppages or other labor disruptions; (20) significant changes in
discount rates and actual investment return on pension assets; (21)
potential environmental liabilities; and (22) threats to the
security of our or our customers' information.
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:
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Investor Relations:
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Troy Lahr or Ben
Hackman (312) 544-2140
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Communications:
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Bernard Choi
(312) 544-2002
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The Boeing Company
and Subsidiaries
|
Consolidated
Statements of Operations
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Three months
ended
March 31
|
(Dollars in
millions, except per share data)
|
2017
|
|
2016
|
Sales of
products
|
|
$18,512
|
|
|
$19,885
|
Sales of
services
|
2,464
|
|
2,747
|
Total
revenues
|
20,976
|
|
22,632
|
|
|
|
Cost of
products
|
(15,363)
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|
(16,945)
|
Cost of
services
|
(1,888)
|
|
(2,136)
|
Boeing Capital
interest expense
|
(13)
|
|
(16)
|
Total costs and
expenses
|
(17,264)
|
|
(19,097)
|
|
3,712
|
|
3,535
|
Income from operating
investments, net
|
81
|
|
54
|
General and
administrative expense
|
(933)
|
|
(888)
|
Research and
development expense, net
|
(838)
|
|
(917)
|
Gain on dispositions,
net
|
2
|
|
4
|
Earnings from
operations
|
2,024
|
|
1,788
|
Other income,
net
|
22
|
|
26
|
Interest and debt
expense
|
(87)
|
|
(73)
|
Earnings before
income taxes
|
1,959
|
|
1,741
|
Income tax
expense
|
(508)
|
|
(522)
|
Net
earnings
|
|
$1,451
|
|
|
$1,219
|
|
|
|
Basic earnings per
share
|
|
$2.36
|
|
|
$1.85
|
|
|
|
Diluted earnings
per share
|
|
$2.34
|
|
|
$1.83
|
|
|
|
Cash dividends
paid per share
|
|
$1.42
|
|
|
$1.09
|
|
|
|
Weighted average
diluted shares (millions)
|
621.2
|
|
665.8
|
The Boeing Company
and Subsidiaries
|
Consolidated
Statements of Financial Position
|
(Unaudited)
|
|
|
|
|
|
|
|
(Dollars in
millions, except per share data)
|
March 31 2017
|
|
December 31
2016
|
Assets
|
|
|
Cash and cash
equivalents
|
|
$8,190
|
|
|
$8,801
|
Short-term and other
investments
|
1,015
|
|
1,228
|
Accounts receivable,
net
|
9,335
|
|
8,832
|
Current portion of
customer financing, net
|
580
|
|
428
|
Inventories, net of
advances and progress billings
|
43,247
|
|
43,199
|
Total current
assets
|
62,367
|
|
62,488
|
Customer financing,
net
|
3,527
|
|
3,773
|
Property, plant and
equipment, net of accumulated depreciation of $17,156 and
$16,883
|
12,842
|
|
12,807
|
Goodwill
|
5,342
|
|
5,324
|
Acquired intangible
assets, net
|
2,496
|
|
2,540
|
Deferred income
taxes
|
336
|
|
332
|
Investments
|
1,319
|
|
1,317
|
Other assets, net of
accumulated amortization of $527 and $497
|
1,444
|
|
1,416
|
Total
assets
|
|
$89,673
|
|
|
$89,997
|
Liabilities and
equity
|
|
|
Accounts
payable
|
|
$11,964
|
|
|
$11,190
|
Accrued
liabilities
|
13,332
|
|
14,691
|
Advances and billings
in excess of related costs
|
24,118
|
|
23,869
|
Short-term debt and
current portion of long-term debt
|
367
|
|
384
|
Total current
liabilities
|
49,781
|
|
50,134
|
Deferred income
taxes
|
1,339
|
|
1,338
|
Accrued retiree
health care
|
5,885
|
|
5,916
|
Accrued pension plan
liability, net
|
19,796
|
|
19,943
|
Other long-term
liabilities
|
2,285
|
|
2,221
|
Long-term
debt
|
10,432
|
|
9,568
|
Shareholders'
equity:
|
|
|
Common stock, par
value $5.00 ā 1,200,000,000 shares authorized;
1,012,261,159 shares issued
|
5,061
|
|
5,061
|
Additional paid-in
capital
|
4,604
|
|
4,762
|
Treasury stock, at
cost - 406,468,802 and 395,109,568 shares
|
(38,320)
|
|
(36,097)
|
Retained
earnings
|
42,165
|
|
40,714
|
Accumulated other
comprehensive loss
|
(13,415)
|
|
(13,623)
|
Total shareholders'
equity
|
95
|
|
817
|
Noncontrolling
interests
|
60
|
|
60
|
Total
equity
|
155
|
|
877
|
Total liabilities
and equity
|
|
$89,673
|
|
|
$89,997
|
The Boeing Company
and Subsidiaries
|
Consolidated
Statements of Cash Flows
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Three months
ended
March 31
|
(Dollars in
millions)
|
2017
|
|
2016
|
Cash
flows ā operating activities:
|
|
|
Net
earnings
|
|
$1,451
|
|
|
$1,219
|
Adjustments to
reconcile net earnings to net cash provided by operating
activities:
|
|
|
Non-cash items
ā
|
|
|
Share-based plans
expense
|
50
|
|
51
|
Depreciation and
amortization
|
471
|
|
443
|
Investment/asset
impairment charges, net
|
23
|
|
33
|
Customer financing
valuation benefit
|
7
|
|
(2)
|
Gain on dispositions,
net
|
(2)
|
|
(4)
|
Other charges and
credits, net
|
52
|
|
84
|
Changes in assets and
liabilities ā
|
|
|
Accounts
receivable
|
(769)
|
|
(1,002)
|
Inventories, net of
advances and progress billings
|
(31)
|
|
(56)
|
Accounts
payable
|
616
|
|
960
|
Accrued
liabilities
|
(613)
|
|
(467)
|
Advances and billings
in excess of related costs
|
249
|
|
(435)
|
Income taxes
receivable, payable and deferred
|
495
|
|
273
|
Other long-term
liabilities
|
(72)
|
|
(116)
|
Pension and other
postretirement plans
|
10
|
|
79
|
Customer financing,
net
|
232
|
|
276
|
Other
|
(75)
|
|
(61)
|
Net
cash provided by operating activities
|
2,094
|
|
1,275
|
Cash flows ā
investing activities:
|
|
|
Property, plant and
equipment additions
|
(466)
|
|
(748)
|
Property, plant and
equipment reductions
|
9
|
|
11
|
Contributions to
investments
|
(605)
|
|
(204)
|
Proceeds from
investments
|
803
|
|
493
|
Other
|
(3)
|
|
10
|
Net
cash used by investing activities
|
(262)
|
|
(438)
|
Cash flows ā
financing activities:
|
|
|
New
borrowings
|
872
|
|
115
|
Debt
repayments
|
(34)
|
|
(128)
|
Stock options
exercised
|
174
|
|
42
|
Employee taxes on
certain share-based payment arrangements
|
(107)
|
|
(76)
|
Common shares
repurchased
|
(2,500)
|
|
(3,501)
|
Dividends
paid
|
(868)
|
|
(717)
|
Net
cash used by financing activities
|
(2,463)
|
|
(4,265)
|
Effect of exchange
rate changes on cash and cash equivalents
|
20
|
|
12
|
Net decrease in
cash and cash equivalents
|
(611)
|
|
(3,416)
|
Cash and cash
equivalents at beginning of year
|
8,801
|
|
11,302
|
Cash and cash
equivalents at end of period
|
|
$8,190
|
|
|
$7,886
|
The Boeing Company
and Subsidiaries
|
Summary of
Business Segment Data
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Three months
ended
March 31
|
(Dollars in
millions)
|
2017
|
|
2016
|
Revenues:
|
|
|
Commercial
Airplanes
|
|
$14,305
|
|
|
$14,399
|
Defense,
Space & Security:
|
|
|
Boeing Military
Aircraft
|
2,636
|
|
3,659
|
Network &
Space Systems
|
1,564
|
|
1,735
|
Global
Services & Support
|
2,332
|
|
2,562
|
Total Defense,
Space & Security
|
6,532
|
|
7,956
|
Boeing
Capital
|
92
|
|
64
|
Unallocated items,
eliminations and other
|
47
|
|
213
|
Total
revenues
|
|
$20,976
|
|
|
$22,632
|
Earnings from
operations:
|
|
|
Commercial
Airplanes
|
|
$1,215
|
|
|
$1,033
|
Defense,
Space & Security:
|
|
|
Boeing Military
Aircraft
|
321
|
|
334
|
Network &
Space Systems
|
98
|
|
148
|
Global
Services & Support
|
318
|
|
340
|
Total Defense,
Space & Security
|
737
|
|
822
|
Boeing
Capital
|
39
|
|
5
|
Segment operating
profit
|
1,991
|
|
1,860
|
Unallocated items,
eliminations and other
|
33
|
|
(72)
|
Earnings from
operations
|
2,024
|
|
1,788
|
Other income,
net
|
22
|
|
26
|
Interest and debt
expense
|
(87)
|
|
(73)
|
Earnings before
income taxes
|
1,959
|
|
1,741
|
Income tax
expense
|
(508)
|
|
(522)
|
Net
earnings
|
|
$1,451
|
|
|
$1,219
|
|
|
|
Research and
development expense, net:
|
|
|
Commercial
Airplanes
|
|
$636
|
|
|
$671
|
Defense,
Space & Security
|
213
|
|
258
|
Other
|
(11)
|
|
(12)
|
Total research and
development expense, net
|
|
$838
|
|
|
$917
|
|
|
|
Unallocated items,
eliminations and other
|
|
|
Share-based
plans
|
|
($21)
|
|
|
($23)
|
Deferred
compensation
|
(50)
|
|
16
|
Amortization of
previously capitalized interest
|
(31)
|
|
(30)
|
Eliminations and
other unallocated items
|
(180)
|
|
(129)
|
Sub-total
(included in core operating earnings)
|
(282)
|
|
(166)
|
Pension
|
255
|
|
45
|
Postretirement
|
60
|
|
49
|
Total unallocated
items, eliminations and other
|
|
$33
|
|
|
($72)
|
The Boeing Company
and Subsidiaries
|
Operating and
Financial Data
|
(Unaudited)
|
|
Deliveries
|
|
Three months
ended
March 31
|
Commercial
Airplanes
|
|
2017
|
|
|
2016
|
737
|
|
113
|
|
|
121
|
747
|
|
1
|
(1)
|
|
1
|
767
|
|
2
|
|
|
1
|
777
|
|
21
|
|
|
23
|
787
|
|
32
|
|
|
30
|
Total
|
|
169
|
|
|
176
|
Note: Deliveries
under operating lease are identified by parentheses.
|
|
|
|
|
|
|
Defense, Space &
Security
|
|
|
|
|
|
Boeing Military
Aircraft
|
|
|
|
|
|
AH-64 Apache
(New)
|
|
3
|
|
|
7
|
AH-64 Apache
(Remanufactured)
|
|
13
|
|
|
11
|
C-17 Globemaster
III
|
|
|
|
|
3
|
CH-47 Chinook
(New)
|
|
3
|
|
|
3
|
CH-47 Chinook
(Renewed)
|
|
9
|
|
|
9
|
F-15
Models
|
|
3
|
|
|
4
|
F/A-18
Models
|
|
6
|
|
|
8
|
P-8 Models
|
|
4
|
|
|
4
|
|
|
|
|
|
|
Network & Space
Systems
|
|
|
|
|
|
Commercial and Civil
Satellites
|
|
1
|
|
|
1
|
Military
Satellites
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contractual
backlog (Dollars in billions)
|
|
March 31
2017
|
|
|
December 31
2016
|
Commercial
Airplanes
|
|
$415.1
|
|
|
$416.2
|
Defense, Space &
Security:
|
|
|
|
|
|
Boeing Military
Aircraft
|
|
23.4
|
|
|
21.4
|
Network & Space
Systems
|
|
6.0
|
|
|
5.1
|
Global Services &
Support
|
|
17.0
|
|
|
15.6
|
Total Defense, Space
& Security
|
|
46.4
|
|
|
42.1
|
Total contractual
backlog
|
|
$461.5
|
|
|
$458.3
|
Unobligated
backlog
|
|
$18.0
|
|
|
$15.2
|
Total
backlog
|
|
$479.5
|
|
|
$473.5
|
Workforce
|
|
147,000
|
|
|
150,500
|
The Boeing Company and Subsidiaries
Reconciliation of Non-GAAP Measures
(Unaudited)
The tables provided below reconcile the non-GAAP financial
measures core operating earnings, core operating margin, and core
earnings per share with the most directly comparable GAAP financial
measures, earnings from operations, operating margin, and diluted
earnings per share. See page 6 of this release for additional
information on the use of these non-GAAP financial measures.
|
|
|
|
|
|
|
|
|
(Dollars in
millions, except per share data)
|
First
Quarter
|
Guidance
|
|
2017
|
2016
|
2017
|
Revenues
|
|
$20,976
|
|
|
$22,632
|
|
|
|
|
|
|
GAAP Earnings From
Operations
|
|
$2,024
|
|
|
$1,788
|
|
|
Increase/(Decrease) in GAAP Earnings From
Operations
|
13%
|
|
|
|
|
GAAP Operating
Margin
|
9.6%
|
|
7.9%
|
|
|
|
|
|
|
Unallocated
Pension Income
|
|
($255)
|
|
|
($45)
|
|
|
Unallocated Other
Postretirement Benefit Income
|
|
($60)
|
|
|
($49)
|
|
|
Unallocated
Pension and Other Postretirement Benefit Income
|
|
($315)
|
|
|
($94)
|
|
~($1,075)
|
Core Operating
Earnings (non-GAAP)
|
|
$1,709
|
|
|
$1,694
|
|
|
Increase/(Decrease) in Core Operating Earnings
(non-GAAP)
|
1%
|
|
|
|
|
Core Operating
Margin (non-GAAP)
|
8.1%
|
|
7.5%
|
|
|
|
|
|
|
|
|
GAAP Diluted
Earnings Per Share
|
|
$2.34
|
|
|
$1.83
|
|
$10.35 -
$10.55
|
Unallocated
Pension Income
|
|
($0.41)
|
|
|
($0.07)
|
|
|
Unallocated
Postretirement Benefit Income
|
|
($0.10)
|
|
|
($0.07)
|
|
($1.15)
|
Provision for
deferred income taxes on adjustments
(1)
|
|
$0.18
|
|
|
$0.05
|
|
|
Core Earnings Per
Share (non-GAAP)
|
|
$2.01
|
|
|
$1.74
|
|
$9.20 -
$9.40
|
|
|
|
|
Weighted Average
Diluted Shares (millions)
|
621.2
|
|
665.8
|
|
605 -
610
|
Increase/(Decrease) in GAAP Earnings Per
Share
|
28%
|
|
|
|
Increase/(Decrease) in Core Earnings Per Share
(non-GAAP)
|
16%
|
|
|
|
|
|
|
|
(1) The
income tax impact is calculated using the tax rate in effect for
the non-GAAP adjustments.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/boeing-reports-first-quarter-results-and-raises-eps-guidance-300445743.html
SOURCE Boeing