CHICAGO, April 29, 2020 /PRNewswire/ --
- Financial results significantly impacted by COVID-19 and the
737 MAX grounding
- Revenue of $16.9 billion, GAAP
loss per share of ($1.11) and core
(non-GAAP)* loss per share of ($1.70)
- Operating cash flow of ($4.3) billion; cash and marketable
securities of $15.5 billion
- Total backlog of $439 billion,
including over 5,000 commercial airplanes
Table 1. Summary
Financial Results
|
First
Quarter
|
|
|
(Dollars in
Millions, except per share data)
|
2020
|
|
2019
|
|
Change
|
|
|
|
|
|
|
Revenues
|
$16,908
|
|
$22,917
|
|
(26)%
|
|
|
|
|
|
|
GAAP
|
|
|
|
|
|
(Loss)/Earnings
From Operations
|
($1,353)
|
|
$2,350
|
|
NM
|
Operating
Margin
|
(8.0)%
|
|
10.3%
|
|
NM
|
Net
(Loss)/Earnings
|
(641)
|
|
$2,149
|
|
NM
|
(Loss)/Earnings
Per Share
|
($1.11)
|
|
$3.75
|
|
NM
|
Operating Cash
Flow
|
($4,302)
|
|
$2,788
|
|
NM
|
Non-GAAP*
|
|
|
|
|
|
Core Operating
(Loss)/Earnings
|
($1,700)
|
|
$1,986
|
|
NM
|
Core Operating
Margin
|
(10.1)%
|
|
8.7%
|
|
NM
|
Core
(Loss)/Earnings Per Share
|
($1.70)
|
|
$3.16
|
|
NM
|
|
*Non-GAAP measure;
complete definitions of Boeing's non-GAAP measures are on page 6,
"Non-GAAP Measures
Disclosures."
|
The Boeing Company [NYSE: BA] reported first-quarter revenue of
$16.9 billion, GAAP loss per
share of ($1.11) and core loss per
share (non-GAAP)* of ($1.70),
primarily reflecting the impacts of COVID-19 and the 737 MAX
grounding (Table 1). Boeing recorded operating cash flow of
($4.3) billion.
"The COVID-19 pandemic is affecting every aspect of our
business, including airline customer demand, production continuity
and supply chain stability," said Boeing President and CEO
David Calhoun. "Our primary focus is
the health and safety of our people and communities while we take
tough but necessary action to navigate this unprecedented health
crisis and adapt for a changed marketplace."
As the pandemic continues to reduce airline passenger traffic,
Boeing sees significant impact on the demand for new commercial
airplanes and services, with airlines delaying purchases for new
jets, slowing delivery schedules and deferring elective
maintenance. To align the business for the new market reality,
Boeing is taking several actions that include reducing commercial
airplane production rates. The company also announced a leadership
and organizational restructuring to streamline roles and
responsibilities, and plans to reduce overall staffing levels with
a voluntary layoff program and additional workforce actions as
necessary.
Boeing has also taken action to manage near-term liquidity, as
it has drawn on a term loan facility; reduced operating costs and
discretionary spending; extended the existing pause on share
repurchases and suspended dividends until further notice; reduced
or deferred research and development and capital expenditures; and
eliminated CEO and Chairman pay for the year. Access to additional
liquidity will be critical for Boeing and the aerospace
manufacturing sector to bridge to recovery, and the company is
actively exploring all of the available options. Boeing believes it
will be able to obtain sufficient liquidity to fund its
operations.
"While COVID-19 is adding unprecedented pressure to our
business, we remain confident in our long term future," said
Calhoun. "We continue to support our defense customers in
their critical national security missions. We are progressing
toward the safe return to service of the 737 MAX, and we are
driving safety, quality and operational excellence into all that we
do every day. Air travel has always been resilient, our portfolio
of products and technology is well positioned, and we are confident
we will emerge from the crisis and thrive again as a leader of our
industry."
Table 2. Cash
Flow
|
First
Quarter
|
(Millions)
|
2020
|
|
2019
|
Operating Cash
Flow
|
($4,302)
|
|
$2,788
|
Less Additions to
Property, Plant & Equipment
|
($428)
|
|
($501)
|
Free Cash
Flow*
|
($4,730)
|
|
$2,287
|
|
*Non-GAAP measure;
complete definitions of Boeing's non-GAAP measures are on page 6,
"Non-GAAP Measures
Disclosures."
|
Operating cash flow was ($4.3)
billion in the quarter, primarily reflecting the impact of
the 737 MAX grounding and COVID-19, as well as timing of receipts
and expenditures (Table 2).
Table 3. Cash,
Marketable Securities and Debt Balances
|
Quarter-End
|
(Billions)
|
Q1
20
|
|
Q4
19
|
Cash
|
$15.0
|
|
$9.5
|
Marketable
Securities1
|
$0.5
|
|
$0.5
|
Total
|
$15.5
|
|
$10.0
|
Debt
Balances:
|
|
|
|
The Boeing Company,
net of intercompany loans to BCC
|
$36.9
|
|
$25.3
|
Boeing Capital,
including intercompany loans
|
$2.0
|
|
$2.0
|
Total Consolidated
Debt
|
$38.9
|
|
$27.3
|
|
1
Marketable securities consists primarily of time deposits due
within one year classified as "short-term
investments."
|
Cash and investments in marketable securities increased to
$15.5 billion, compared to
$10.0 billion at the beginning of the
quarter, primarily due to increased debt balance (Table 3). Debt
was $38.9 billion, up from
$27.3 billion at the beginning of the
quarter primarily due to the draw down of a term loan facility,
partially offset by debt repayments.
Total company backlog at quarter-end was $439 billion.
Segment Results
Commercial Airplanes
Table 4.
Commercial Airplanes
|
First
Quarter
|
|
|
(Dollars in
Millions)
|
2020
|
|
2019
|
|
Change
|
|
|
|
|
|
|
Commercial
Airplanes Deliveries
|
50
|
|
149
|
|
(66)%
|
|
|
|
|
|
|
Revenues
|
$6,205
|
|
$11,822
|
|
(48)%
|
(Loss)/Earnings
from Operations
|
($2,068)
|
|
$1,173
|
|
NM
|
Operating
Margin
|
(33.3)%
|
|
9.9%
|
|
NM
|
Commercial Airplanes first-quarter revenue was $6.2 billion reflecting lower deliveries driven
by the 737 MAX grounding as well as impacts of COVID-19 (Table 4).
First-quarter operating margin decreased to (33.3) percent due to
lower delivery volume, $797 million
of abnormal production costs from the temporary suspension of 737
MAX production, a $336 million charge
related to 737 Next Generation frame fitting component (pickle
fork) repair costs, lower 787 margins primarily due to COVID-19,
and $137 million of abnormal
production costs from the temporary suspension of Puget Sound
operations in response to COVID-19.
COVID-19 has adversely impacted the 737 program due to a slower
than previously planned production rate ramp-up driven by
commercial airline industry uncertainty. To reflect COVID-19
impacts on the demand environment, 737 MAX aircraft production will
resume at low rates in 2020 as timing and conditions of return to
service are better understood and gradually increase to 31 per
month during 2021, with further gradual increases to correspond
with market demand. The estimated abnormal production costs from
the temporary suspension of 737 MAX production have increased by
approximately $1 billion due to
updated production rate assumptions, bringing the estimated total
to approximately $5 billion. There
was no material change to estimated potential concessions and other
considerations to customers related to the 737 MAX grounding.
Commercial Airplanes has updated its production rate assumptions
to reflect impacts from COVID-19 on its operations and demand
outlook, and will continue to assess them on an ongoing basis. The
787 production rate will be reduced from 14 per month to 10 per
month in 2020, and gradually reduced to 7 per month by 2022. The
777/777X combined production rate will be reduced to 3 per month in
2021. At this time, production rate assumptions have not changed on
the 767 and 747 programs.
Commercial Airplanes delivered 50 airplanes during the quarter,
including 29 787s. Commercial Airplanes captured an order for 12
787 aircraft for All Nippon Airways, and produced the
1000th 787 at Boeing South Carolina. Commercial
Airplanes backlog included over 5,000 airplanes valued at
$352 billion.
Defense, Space & Security
Table 5. Defense,
Space & Security
|
First
Quarter
|
|
|
(Dollars in
Millions)
|
2020
|
|
2019
|
|
Change
|
|
|
|
|
|
|
Revenues
|
$6,042
|
|
$6,587
|
|
(8)%
|
Earnings from
Operations
|
($191)
|
|
$852
|
|
NM
|
Operating
Margin
|
(3.2)%
|
|
12.9%
|
|
NM
|
Defense, Space & Security first-quarter revenue decreased to
$6.0 billion primarily driven by a
charge on the KC-46A Tanker (Table 5). First-quarter operating
margin decreased to (3.2) percent primarily due to a pre-tax charge
of $827 million for the KC-46A
Tanker, of which $551 million was
driven by costs associated with the agreement signed in April with
the U.S. Air Force to develop and integrate a new Remote Vision
System, while the remaining costs reflect productivity
inefficiencies and COVID-19 related factory disruption. A number of
other programs were also impacted by COVID-19, further reducing
margin in the quarter.
During the quarter, Defense, Space & Security received an
award for 18 P-8A Poseidon maritime patrol aircraft, as well as a
contract to develop a SB>1 DEFIANTâ„¢ prototype for the U.S.
Army's Future Long Range Assault Aircraft program. Defense, Space
& Security also completed the System Design Review for
MQ-25.
Backlog at Defense, Space & Security was $64 billion, of which 28 percent represents
orders from customers outside the U.S.
Global Services
Table 6. Global
Services
|
First
Quarter
|
|
|
(Dollars in
Millions)
|
2020
|
|
2019
|
|
Change
|
|
|
|
|
|
|
Revenues
|
$4,628
|
|
$4,619
|
|
—
|
Earnings from
Operations
|
$708
|
|
$653
|
|
8%
|
Operating
Margin
|
15.3%
|
|
14.1%
|
|
1.2
Pts
|
Global Services first-quarter revenue was $4.6 billion, reflecting higher government
services volume, largely offset by lower commercial services volume
due to COVID-19. (Table 6). First-quarter operating margin
increased to 15.3 percent primarily due to favorable government
services performance.
During the quarter, Global Services was awarded a P-8A
integrated logistics services and site activation support contract
modification from the U.S. Navy and the government of Australia and secured a logistics, components
and services contract for the U.S. Army AH-64 Apache fleet. At the
Singapore Airshow, Global Services announced several consumable and
expendable services agreements as well as digital solutions
agreements with multiple Asia-Pacific airlines.
Additional Financial Information
Table 7.
Additional Financial Information
|
First
Quarter
|
(Dollars in
Millions)
|
2020
|
|
2019
|
Revenues
|
|
|
|
Boeing
Capital
|
$65
|
|
$66
|
Unallocated items,
eliminations and other
|
($32)
|
|
($177)
|
Earnings from
Operations
|
|
|
|
Boeing
Capital
|
$24
|
|
$20
|
FAS/CAS service cost
adjustment
|
$347
|
|
$364
|
Other unallocated
items and eliminations
|
($173)
|
|
($712)
|
Other income,
net
|
$112
|
|
$106
|
Interest and debt
expense
|
($262)
|
|
($123)
|
Effective tax
rate
|
57.4%
|
|
7.9%
|
At quarter-end, Boeing Capital's net portfolio balance was
$2.2 billion. Revenue from other
unallocated items and eliminations increased primarily due to the
timing of eliminations for intercompany aircraft deliveries. The
change in earnings from other unallocated items and eliminations is
primarily due to lower deferred compensation expense and a customer
financing impairment charge taken in the first quarter of 2019.
Interest and debt expense increased due to higher debt balances.
The first quarter effective tax rate reflects tax benefits related
to the 5 year net operating loss carryback provision in the
Coronavirus Aid, Relief, and Economic Security (CARES) Act as well
as the impact of pre-tax losses.
Non-GAAP Measures Disclosures
We supplement the reporting of our financial information
determined under Generally Accepted Accounting Principles in
the United States of America
(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 (Loss)/Earnings, Core Operating Margin and Core
(Loss)/Earnings Per Share
Core operating (loss)/earnings is defined as GAAP
(loss)/earnings from operations excluding the FAS/CAS
service cost adjustment. The FAS/CAS service cost
adjustment represents the difference between the FAS pension
and postretirement service costs calculated under GAAP and costs
allocated to the business segments. Core operating margin is
defined as core operating (loss)/earnings expressed as a percentage
of revenue. Core (loss)/earnings per share is defined as GAAP
diluted (loss)/earnings per share excluding the net
(loss)/earnings per share impact of the FAS/CAS service cost
adjustment and Non-operating pension and postretirement
expenses. Non-operating pension and postretirement expenses
represent the components of net periodic benefit costs other than
service cost. Pension costs, comprising service and prior service
costs computed in accordance with GAAP are allocated to Commercial
Airplanes and BGS businesses supporting commercial customers.
Pension costs allocated to BDS and BGS businesses supporting
government customers 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 (loss)/earnings, core operating margin and core
(loss)/earnings per share for purposes of evaluating and
forecasting underlying business performance. Management believes
these core (loss)/earnings measures provide investors additional
insights into operational performance as they exclude non-service
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 GAAP operating cash flow reduced by
capital expenditures for property, plant and equipment.
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 of free cash flow to GAAP operating 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) the
COVID-19 pandemic and related government actions, including with
respect to our operations, our liquidity and access to funding, the
health of our customers and suppliers, and future demand for our
products and services; (2) the 737 MAX, including the timing and
conditions of 737 MAX regulatory approvals, delays in the
resumption of production, lower than planned production rates
and/or delivery rates, and increased considerations to customers
and suppliers, (3) general conditions in the economy and our
industry, including those due to regulatory changes; (4) our
reliance on our commercial airline customers; (5) the overall
health of our aircraft production system, planned commercial
aircraft production rate changes, our commercial development and
derivative aircraft programs, and our aircraft being subject to
stringent performance and reliability standards; (6) changing
budget and appropriation levels and acquisition priorities of the
U.S. government; (7) our dependence on U.S. government contracts;
(8) our reliance on fixed-price contracts; (9) our reliance on
cost-type contracts; (10) uncertainties concerning contracts that
include in-orbit incentive payments; (11) our dependence on our
subcontractors and suppliers, as well as the availability of raw
materials; (12) changes in accounting estimates; (13) changes in
the competitive landscape in our markets; (14) our non-U.S.
operations, including sales to non-U.S. customers; (15) threats to
the security of our or our customers' information; (16) potential
adverse developments in new or pending litigation and/or government
investigations; (17) customer and aircraft concentration in our
customer financing portfolio; (18) changes in our ability to obtain
debt on commercially reasonable terms and at competitive rates;
(19) realizing the anticipated benefits of mergers, acquisitions,
joint ventures/strategic alliances or divestitures; (20) the
adequacy of our insurance coverage to cover significant risk
exposures; (21) potential business disruptions, including those
related to physical security threats, information technology or
cyber-attacks, epidemics, sanctions or natural disasters; (22) work
stoppages or other labor disruptions; (23) substantial pension and
other postretirement benefit obligations; and (24) 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:
|
|
Maurita Sutedja or
Keely Moos (312) 544-2140
|
Communications:
|
|
Michael Friedman
media@boeing.com
|
The Boeing Company
and Subsidiaries
|
Consolidated
Statements of Operations
|
(Unaudited)
|
|
|
Three months
ended
March 31
|
(Dollars in
millions, except per share data)
|
2020
|
|
2019
|
Sales of
products
|
$14,191
|
|
$20,225
|
Sales of
services
|
2,717
|
|
2,692
|
Total
revenues
|
16,908
|
|
22,917
|
|
|
|
|
Cost of
products
|
(14,713)
|
|
(16,238)
|
Cost of
services
|
(2,043)
|
|
(2,389)
|
Boeing Capital
interest expense
|
(12)
|
|
(18)
|
Total costs and
expenses
|
(16,768)
|
|
(18,645)
|
|
140
|
|
4,272
|
(Loss)/income from
operating investments, net
|
(2)
|
|
20
|
General and
administrative expense
|
(873)
|
|
(1,184)
|
Research and
development expense, net
|
(672)
|
|
(866)
|
Gain on dispositions,
net
|
54
|
|
108
|
(Loss)/earnings
from operations
|
(1,353)
|
|
2,350
|
Other income,
net
|
112
|
|
106
|
Interest and debt
expense
|
(262)
|
|
(123)
|
(Loss)/earnings
before income taxes
|
(1,503)
|
|
2,333
|
Income tax
benefit/(expense)
|
862
|
|
(184)
|
Net
(loss)/earnings
|
($641)
|
|
$2,149
|
Less: net loss
attributable to noncontrolling interest
|
($13)
|
|
|
Net
(loss)/earnings attributable to Boeing Shareholders
|
($628)
|
|
$2,149
|
|
|
|
|
Basic
(loss)/earnings per share
|
($1.11)
|
|
$3.79
|
|
|
|
|
Diluted
(loss)/earnings per share
|
($1.11)
|
|
$3.75
|
|
|
|
|
Weighted average
diluted shares (millions)
|
565.9
|
|
572.4
|
The Boeing Company
and Subsidiaries
|
Consolidated
Statements of Financial Position
|
(Unaudited)
|
|
(Dollars in
millions, except per share data)
|
March 31
2020
|
|
December 31
2019
|
Assets
|
|
|
|
Cash and cash
equivalents
|
$15,039
|
|
$9,485
|
Short-term and other
investments
|
488
|
|
545
|
Accounts receivable,
net
|
3,211
|
|
3,266
|
Unbilled receivables,
net
|
9,365
|
|
9,043
|
Current portion of
customer financing, net
|
149
|
|
162
|
Inventories
|
80,020
|
|
76,622
|
Other current assets,
net
|
2,739
|
|
3,106
|
Total current
assets
|
111,011
|
|
102,229
|
Customer financing,
net
|
2,116
|
|
2,136
|
Property, plant and
equipment, net of accumulated depreciation of $19,591 and
$19,342
|
12,405
|
|
12,502
|
Goodwill
|
8,057
|
|
8,060
|
Acquired intangible
assets, net
|
3,256
|
|
3,338
|
Deferred income
taxes
|
678
|
|
683
|
Investments
|
1,124
|
|
1,092
|
Other assets, net of
accumulated amortization of $611 and $580
|
4,428
|
|
3,585
|
Total
assets
|
$143,075
|
|
$133,625
|
Liabilities and
equity
|
|
|
|
Accounts
payable
|
$14,963
|
|
$15,553
|
Accrued
liabilities
|
21,483
|
|
22,868
|
Advances and progress
billings
|
52,883
|
|
51,551
|
Short-term debt and
current portion of long-term debt
|
5,173
|
|
7,340
|
Total current
liabilities
|
94,502
|
|
97,312
|
Deferred income
taxes
|
336
|
|
413
|
Accrued retiree
health care
|
4,483
|
|
4,540
|
Accrued pension plan
liability, net
|
15,962
|
|
16,276
|
Other long-term
liabilities
|
3,398
|
|
3,422
|
Long-term
debt
|
33,754
|
|
19,962
|
Shareholders'
equity:
|
|
|
|
Common stock, par
value $5.00 – 1,200,000,000 shares authorized; 1,012,261,159 shares
issued
|
5,061
|
|
5,061
|
Additional paid-in
capital
|
6,595
|
|
6,745
|
Treasury stock, at
cost - 447,947,807 and 449,352,405 shares
|
(54,842)
|
|
(54,914)
|
Retained
earnings
|
49,854
|
|
50,644
|
Accumulated other
comprehensive loss
|
(16,333)
|
|
(16,153)
|
Total shareholders'
equity
|
(9,665)
|
|
(8,617)
|
Noncontrolling
interests
|
305
|
|
317
|
Total
equity
|
(9,360)
|
|
(8,300)
|
Total liabilities
and equity
|
$143,075
|
|
$133,625
|
The Boeing Company
and Subsidiaries
|
Consolidated
Statements of Cash Flows
|
(Unaudited)
|
|
|
Three months
ended
March 31
|
(Dollars in
millions)
|
2020
|
|
2019
|
Cash
flows – operating activities:
|
|
|
|
Net
(loss)/earnings
|
($641)
|
|
$2,149
|
Adjustments to
reconcile net earnings to net cash provided by operating
activities:
|
|
|
|
Non-cash items
–
|
|
|
|
Share-based plans
expense
|
55
|
|
47
|
Depreciation and
amortization
|
556
|
|
521
|
Investment/asset
impairment charges, net
|
26
|
|
34
|
Customer financing
valuation adjustments
|
|
|
249
|
Gain on dispositions,
net
|
(54)
|
|
(108)
|
Other charges and
credits, net
|
97
|
|
74
|
Changes in assets and
liabilities –
|
|
|
|
Accounts
receivable
|
(54)
|
|
206
|
Unbilled
receivables
|
(402)
|
|
(183)
|
Advances and progress
billings
|
1,337
|
|
1,857
|
Inventories
|
(2,973)
|
|
(2,725)
|
Other current
assets
|
328
|
|
164
|
Accounts
payable
|
(1,030)
|
|
1,624
|
Accrued
liabilities
|
(583)
|
|
(919)
|
Income taxes
receivable, payable and deferred
|
(892)
|
|
116
|
Other long-term
liabilities
|
(69)
|
|
(281)
|
Pension and other
postretirement plans
|
(179)
|
|
(188)
|
Customer financing,
net
|
23
|
|
152
|
Other
|
153
|
|
(1)
|
Net cash
(used)/provided by operating activities
|
(4,302)
|
|
2,788
|
Cash flows –
investing activities:
|
|
|
|
Property, plant and
equipment additions
|
(428)
|
|
(501)
|
Property, plant and
equipment reductions
|
58
|
|
110
|
Acquisitions, net of
cash acquired
|
|
|
(276)
|
Contributions to
investments
|
(244)
|
|
(457)
|
Proceeds from
investments
|
227
|
|
366
|
Other
|
8
|
|
(9)
|
Net cash
used by investing activities
|
(379)
|
|
(767)
|
Cash flows –
financing activities:
|
|
|
|
New
borrowings
|
17,433
|
|
5,237
|
Debt
repayments
|
(5,854)
|
|
(4,374)
|
Contributions from
noncontrolling interests
|
|
|
7
|
Stock options
exercised
|
21
|
|
42
|
Employee taxes on
certain share-based payment arrangements
|
(162)
|
|
(233)
|
Common shares
repurchased
|
|
|
(2,341)
|
Dividends
paid
|
(1,158)
|
|
(1,161)
|
Net cash
provided/(used) by financing activities
|
10,280
|
|
(2,823)
|
Effect of exchange
rate changes on cash and cash equivalents, including
restricted
|
(47)
|
|
1
|
Net
increase/(decrease) in cash & cash equivalents, including
restricted
|
5,552
|
|
(801)
|
Cash & cash
equivalents, including restricted, at beginning of year
|
9,571
|
|
7,813
|
Cash & cash
equivalents, including restricted, at end of period
|
15,123
|
|
7,012
|
Less restricted cash
& cash equivalents, included in Investments
|
84
|
|
176
|
Cash and cash
equivalents at end of period
|
$15,039
|
|
$6,836
|
The Boeing Company and
Subsidiaries
Summary of Business Segment Data
(Unaudited)
Effective at the beginning of 2020, certain programs were
realigned between our Defense, Space & Security segment and
Unallocated items, eliminations and other. Business segment data
for 2019 has been adjusted to reflect the realignment.
|
Three months
ended
March 31
|
(Dollars in
millions)
|
2020
|
|
2019
|
Revenues:
|
|
|
|
Commercial
Airplanes
|
$6,205
|
|
$11,822
|
Defense, Space &
Security
|
6,042
|
|
6,587
|
Global
Services
|
4,628
|
|
4,619
|
Boeing
Capital
|
65
|
|
66
|
Unallocated items,
eliminations and other
|
(32)
|
|
(177)
|
Total
revenues
|
$16,908
|
|
$22,917
|
(Loss)/earnings from
operations:
|
|
|
|
Commercial
Airplanes
|
($2,068)
|
|
$1,173
|
Defense, Space &
Security
|
(191)
|
|
852
|
Global
Services
|
708
|
|
653
|
Boeing
Capital
|
24
|
|
20
|
Segment operating
(loss)/profit
|
(1,527)
|
|
2,698
|
Unallocated items,
eliminations and other
|
(173)
|
|
(712)
|
FAS/CAS service cost
adjustment
|
347
|
|
364
|
(Loss)/earnings
from operations
|
(1,353)
|
|
2,350
|
Other income,
net
|
112
|
|
106
|
Interest and debt
expense
|
(262)
|
|
(123)
|
(Loss)/earnings
before income taxes
|
(1,503)
|
|
2,333
|
Income tax
benefit/(expense)
|
862
|
|
(184)
|
Net
(loss)/earnings
|
($641)
|
|
$2,149
|
Less: Net loss
attributable to noncontrolling interest
|
(13)
|
|
|
Net
(loss)/earnings attributable to Boeing Shareholders
|
(628)
|
|
2,149
|
Research and
development expense, net:
|
|
|
|
Commercial
Airplanes
|
$425
|
|
$564
|
Defense, Space &
Security
|
163
|
|
184
|
Global
Services
|
30
|
|
40
|
Other
|
54
|
|
78
|
Total research and
development expense, net
|
$672
|
|
$866
|
Unallocated items,
eliminations and other:
|
|
|
|
Share-based
plans
|
($18)
|
|
($14)
|
Deferred
compensation
|
193
|
|
(102)
|
Amortization of
previously capitalized interest
|
(23)
|
|
(24)
|
Customer financing
impairment
|
|
|
(250)
|
Research and
development expense, net
|
(54)
|
|
(78)
|
Eliminations and
other unallocated items
|
(271)
|
|
(244)
|
Sub-total
(included in core operating earnings)
|
(173)
|
|
(712)
|
Pension FAS/CAS
service cost adjustment
|
255
|
|
274
|
Postretirement
FAS/CAS service cost adjustment
|
92
|
|
90
|
FAS/CAS service
cost adjustment
|
347
|
|
364
|
Total
|
$174
|
|
($348)
|
The Boeing Company
and Subsidiaries
|
Operating and
Financial Data
|
(Unaudited)
|
|
Deliveries
|
Three months
ended
March 31
|
|
Commercial
Airplanes
|
2020
|
|
2019
|
|
737
|
5
|
|
89
|
|
747
|
—
|
|
2
|
|
767
|
10
|
|
12
|
|
777
|
6
|
|
10
|
(1)
|
787
|
29
|
|
36
|
|
Total
|
50
|
|
149
|
|
Note:
Aircraft accounted for as revenues by BCA and as operating leases
in consolidation identified by parentheses
|
|
|
|
|
|
Defense, Space &
Security
|
|
|
|
|
AH-64 Apache
(New)
|
2
|
|
6
|
|
AH-64 Apache
(Remanufactured)
|
14
|
|
22
|
|
C-17 Globemaster
III
|
—
|
|
—
|
|
C-40A
|
—
|
|
—
|
|
CH-47 Chinook
(New)
|
9
|
|
7
|
|
CH-47 Chinook
(Renewed)
|
1
|
|
4
|
|
F-15
Models
|
—
|
|
4
|
|
F/A-18
Models
|
5
|
|
7
|
|
KC-46
Tanker
|
5
|
|
7
|
|
P-8 Models
|
3
|
|
3
|
|
Commercial and Civil
Satellites
|
—
|
|
—
|
|
Military
Satellites
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
Total backlog
(Dollars in millions)
|
March 31
2020
|
|
December 31
2019
|
|
Commercial
Airplanes
|
$351,778
|
|
$376,593
|
|
Defense, Space &
Security
|
63,578
|
|
63,691
|
|
Global
Services
|
22,747
|
|
22,902
|
|
Unallocated items,
eliminations and other
|
491
|
|
217
|
|
Total
backlog
|
$438,594
|
|
$463,403
|
|
|
|
|
|
|
Contractual
backlog
|
$414,165
|
|
$436,473
|
|
Unobligated
backlog
|
24,429
|
|
26,930
|
|
Total
backlog
|
$438,594
|
|
$463,403
|
|
The Boeing Company and Subsidiaries
Reconciliation of Non-GAAP Measures
(Unaudited)
The tables provided below reconcile the non-GAAP financial
measures core operating (loss)/earnings, core operating margin, and
core (loss)/earnings per share with the most directly comparable
GAAP financial measures, (loss)/earnings from operations, operating
margin, and diluted (loss)/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
2020
|
|
First Quarter
2019
|
|
$
millions
|
Per
Share
|
|
$ millions
|
Per Share
|
Revenues
|
16,908
|
|
|
22,917
|
|
(Loss)/earnings
from operations (GAAP)
|
(1,353)
|
|
|
2,350
|
|
Operating margin
(GAAP)
|
(8.0)%
|
|
|
10.3%
|
|
|
|
|
|
|
|
FAS/CAS service
cost adjustment:
|
|
|
|
|
|
Pension FAS/CAS
service cost adjustment
|
(255)
|
|
|
(274)
|
|
Postretirement
FAS/CAS service cost adjustment
|
(92)
|
|
|
(90)
|
|
FAS/CAS service
cost adjustment
|
(347)
|
|
|
(364)
|
|
Core operating
(loss)/earnings (non-GAAP)
|
($1,700)
|
|
|
$1,986
|
|
Core operating
margin (non-GAAP)
|
(10.1)%
|
|
|
8.7%
|
|
|
|
|
|
|
|
Diluted
(loss)/earnings per share (GAAP)
|
|
($1.11)
|
|
|
$3.75
|
Pension FAS/CAS
service cost adjustment
|
($255)
|
(0.45)
|
|
($274)
|
(0.48)
|
Postretirement
FAS/CAS service cost adjustment
|
(92)
|
(0.16)
|
|
(90)
|
(0.16)
|
Non-operating pension
expense
|
(87)
|
(0.16)
|
|
(93)
|
(0.16)
|
Non-operating
postretirement expense
|
13
|
0.02
|
|
27
|
0.05
|
Provision for
deferred income taxes on adjustments 1
|
88
|
0.16
|
|
90
|
0.16
|
Subtotal of
adjustments
|
($333)
|
($0.59)
|
|
($340)
|
($0.59)
|
Core
(loss)/earnings per share (non-GAAP)
|
|
($1.70)
|
|
|
$3.16
|
|
|
|
|
|
|
Weighted average
diluted shares (in millions)
|
|
565.9
|
|
|
572.4
|
|
1
The income tax impact is calculated using the U.S. corporate
statutory tax rate.
|
View original
content:http://www.prnewswire.com/news-releases/boeing-reports-first-quarter-results-301049277.html
SOURCE Boeing