ARLINGTON, Va., July 27,
2022 /PRNewswire/ --
Second Quarter 2022
- Operating cash flow of $0.1
billion; continue to expect positive free cash flow for
2022
- Increased 737 production to 31 per month; working with FAA
on final actions to resume 787 deliveries
- Successfully completed CST-100 Starliner uncrewed Orbital
Flight Test-2 (OFT-2)
- Revenue of $16.7 billion; GAAP
earnings per share of $0.32 and core
(non-GAAP)* loss per share of ($0.37)
- Total backlog of $372 billion;
including over 4,200 commercial airplanes
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Table 1. Summary Financial
Results
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Second Quarter
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First Half
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(Dollars in Millions, except per share
data)
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2022
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2021
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Change
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2022
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2021
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Change
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Revenues
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$16,681
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$16,998
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(2) %
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$30,672
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$32,215
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(5) %
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GAAP
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Earnings/(Loss) From Operations
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$774
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$1,023
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(24) %
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($395)
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$940
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NM
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Operating Margin
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4.6
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%
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6.0
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%
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(23) %
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(1.3)
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%
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2.9
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%
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NM
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Net Earnings/(Loss)
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$160
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$567
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(72) %
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($1,082)
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$6
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NM
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Earnings/(Loss) Per Share
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$0.32
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$1.00
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(68) %
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($1.73)
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$0.09
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NM
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Operating Cash Flow
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$81
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($483)
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NM
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($3,135)
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($3,870)
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NM
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Non-GAAP*
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Core Operating Earnings/(Loss)
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$490
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$755
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(35) %
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($962)
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$402
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NM
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Core Operating Margin
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2.9
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%
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4.4
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%
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(34) %
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(3.1)
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%
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1.2
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%
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NM
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Core (Loss)/Earnings Per Share
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($0.37)
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$0.40
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NM
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($3.11)
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($1.12)
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NM
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*Non-GAAP measure;
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 second-quarter revenue of
$16.7 billion, GAAP earnings per
share of $0.32 and core loss per
share (non-GAAP)* of ($0.37), driven
by lower defense volume and unfavorable performance, partially
offset by higher commercial volume (Table 1). Boeing recorded
positive operating cash flow of $0.1
billion.
"We made important progress across key programs in the second
quarter and are building momentum in our turnaround," said
Dave Calhoun, Boeing President and
Chief Executive Officer. "As we begin to hit key milestones, we
were able to generate positive operating cash flow this quarter and
remain on track to achieve positive free cash flow for 2022. While
we are making meaningful progress, we have more work ahead. We will
stay focused on safety, quality and transparency, as we drive
stability, improve performance, and continue to invest in our
future."
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Table 2. Cash Flow
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Second Quarter
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First Half
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(Millions)
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2022
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2021
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2022
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2021
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Operating Cash Flow
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$81
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($483)
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($3,135)
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($3,870)
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Less Additions to
Property, Plant & Equipment
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($263)
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($222)
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($612)
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($513)
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Free Cash Flow*
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($182)
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($705)
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($3,747)
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($4,383)
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*Non-GAAP measure;
complete definitions of Boeing's non-GAAP measures are on page 6,
"Non-GAAP Measures Disclosures."
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Operating cash flow improved to $0.1
billion in the quarter, reflecting higher commercial
deliveries and timing of receipts and expenditures (Table 2).
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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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Q2 22
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Q1 22
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Cash
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$10.0
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$7.4
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Marketable Securities1
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$1.4
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$4.9
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Total
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$11.4
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$12.3
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Debt Balances:
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The Boeing Company, net
of intercompany loans to BCC
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$55.7
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$56.2
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Boeing Capital,
including intercompany loans
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$1.5
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$1.5
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Total Consolidated Debt
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$57.2
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$57.7
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1
Marketable securities consist primarily of time deposits due
within one year classified as "short-term
investments."
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Cash and investments in marketable securities decreased to
$11.4 billion, compared to
$12.3 billion at the beginning of the
quarter, primarily driven by debt repayment (Table 3). The company
has access to credit facilities of $14.7
billion which remain undrawn.
Total company backlog at quarter-end was $372 billion.
Segment Results
Commercial Airplanes
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Table 4. Commercial Airplanes
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Second Quarter
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First Half
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(Dollars in Millions)
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2022
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2021
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Change
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2022
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2021
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Change
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Commercial Airplanes Deliveries
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121
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79
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53 %
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216
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156
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38 %
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Revenues
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$6,219
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$6,015
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3 %
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$10,380
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$10,284
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1 %
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Loss from Operations
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($242)
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($472)
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NM
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($1,101)
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($1,328)
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NM
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Operating Margin
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(3.9)
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%
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(7.8)
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%
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NM
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(10.6)
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%
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(12.9)
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%
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NM
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Commercial Airplanes second-quarter revenue increased to
$6.2 billion, driven by higher 737
deliveries, partially offset by lower 787 deliveries (Table
4). Operating margin of (3.9)% also reflects abnormal costs and
period expenses, including higher R&D expense.
Boeing has nearly completed the global safe return to service of
the 737 MAX and the fleet has flown more than 1.5 million total
flight hours since late 2020. The 737 production rate increased to
31 airplanes per month during the quarter.
On the 787 program, the company continues to work with the FAA
to finalize actions to resume deliveries and is readying airplanes
for delivery. The program is producing at a very low rate and will
continue to do so until deliveries resume, with an expected gradual
return to five per month over time. The company still anticipates
787 abnormal costs of approximately $2
billion, with most being incurred by the end of 2023,
including $283 million recorded in
the quarter.
Commercial Airplanes secured orders for 169 737 MAX airplanes
and 13 freighters, including seven 777-8 Freighters from Lufthansa
Group. Commercial Airplanes delivered 121 airplanes during the
quarter and backlog included over 4,200 airplanes valued at
$297 billion.
Defense, Space & Security
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Table 5. Defense, Space &
Security
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Second Quarter
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First Half
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(Dollars in Millions)
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2022
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2021
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Change
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2022
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2021
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Change
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Revenues
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$6,191
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$6,876
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(10) %
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$11,674
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$14,061
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(17) %
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Earnings/(loss) from Operations
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$71
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$958
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(93) %
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($858)
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$1,363
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NM
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Operating Margin
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1.1
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%
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13.9
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%
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(92) %
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(7.3)
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%
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9.7
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%
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NM
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Defense, Space & Security second-quarter revenue decreased
to $6.2 billion and second-quarter
operating margin decreased to 1.1 percent, primarily driven by
charges on fixed-price development programs, including MQ-25 and
Commercial Crew, as well as unfavorable performance on other
programs and lower volume on derivative aircraft programs. The
MQ-25 program recorded a $147 million
charge primarily due to higher costs to meet certain technical
requirements. The Commercial Crew program also recorded
a $93 million charge, primarily driven by launch manifest
updates and additional costs associated with OFT-2.
During the quarter, the CH-47F Chinook Block II was selected as
the German government's future heavy-lift helicopter. Defense,
Space & Security also successfully completed the CST-100
Starliner uncrewed OFT-2.
Backlog at Defense, Space & Security was $55 billion, of which 33% percent represents
orders from customers outside the U.S.
Global Services
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Table 6. Global Services
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Second Quarter
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First Half
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(Dollars in Millions)
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2022
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2021
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Change
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2022
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2021
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Change
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Revenues
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$4,298
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$4,067
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6 %
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$8,612
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$7,816
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10 %
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Earnings from Operations
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$728
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$531
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37 %
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$1,360
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$972
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40 %
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Operating Margin
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16.9
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%
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13.1
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%
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29 %
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15.8
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%
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12.4
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%
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27 %
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Global Services second-quarter revenue increased to $4.3 billion and second-quarter operating margin
increased to 16.9 percent primarily driven by higher commercial
services volume and favorable mix.
During the quarter, Global Services received a contract for
airlift flight dispatch services from the U.S. Air Force and was
awarded a contract for avionics upgrades and cybersecurity support
for the U.S. Navy. Global Services also delivered the first A-10
wing set to the U.S. Air Force.
Additional Financial Information
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Table 7. Additional Financial
Information
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Second Quarter
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First Half
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(Dollars in Millions)
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2022
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2021
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2022
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2021
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Revenues
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Boeing
Capital
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$52
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$78
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$98
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$138
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Unallocated items,
eliminations and other
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($79)
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($38)
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($92)
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($84)
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Earnings/(Loss) from Operations
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Boeing
Capital
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$27
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$36
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($9)
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$57
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FAS/CAS service cost
adjustment
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$284
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$268
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$567
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$538
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Other unallocated items
and eliminations
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($94)
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($298)
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($354)
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($662)
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Other income, net
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$253
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$199
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$434
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$389
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Interest and debt expense
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($650)
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($673)
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($1,280)
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($1,352)
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Effective tax rate
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57.6
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%
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(3.3)
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%
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12.8
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%
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126.1
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%
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At quarter-end, Boeing Capital's net portfolio balance was
$1.6 billion. The change in loss from
other unallocated items and eliminations was primarily due to the
recognition of deferred compensation income as compared to expense
recorded in the second quarter 2021. The second quarter effective
tax rate primarily reflects tax expense on pretax earnings and an
increase to the valuation allowance.
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 Earnings, Core Operating Margin and Core Earnings
Per Share
Core operating earnings is defined as GAAP earnings from
operations excluding the FAS/CAS service cost
adjustment. The FAS/CAS service cost adjustment
represents the difference between the Financial Accounting
Standards (FAS) pension and postretirement service costs calculated
under GAAP and costs allocated to the business segments. 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 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 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
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 pages 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 industry impacts, including with
respect to our operations, our liquidity, 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
remaining 737 MAX regulatory approvals, lower than planned
production rates and/or delivery rates, and additional
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, our customers'
and/or our suppliers' 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 financing 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; (24) potential
environmental liabilities; and (25) effects of climate change and
legal, regulatory or market responses to such change.
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:
|
|
Matt Welch or Keely
Moos (312) 544-2140
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Communications:
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Michael Friedman
media@boeing.com
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The Boeing Company
and Subsidiaries
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Consolidated
Statements of Operations
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(Unaudited)
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Six months ended
June 30
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Three months ended
June 30
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(Dollars in millions, except per share
data)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Sales of
products
|
$25,436
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|
|
$26,672
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|
|
$14,009
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|
|
$14,154
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Sales of
services
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5,236
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|
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5,543
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|
|
2,672
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|
|
2,844
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Total revenues
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30,672
|
|
|
32,215
|
|
|
16,681
|
|
|
16,998
|
|
|
|
|
|
|
|
|
|
Cost of
products
|
(23,696)
|
|
|
(23,895)
|
|
|
(12,284)
|
|
|
(12,263)
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Cost of
services
|
(4,495)
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|
|
(4,483)
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|
|
(2,269)
|
|
|
(2,316)
|
|
Boeing Capital interest
expense
|
(13)
|
|
|
(18)
|
|
|
(6)
|
|
|
(9)
|
|
Total costs and expenses
|
(28,204)
|
|
|
(28,396)
|
|
|
(14,559)
|
|
|
(14,588)
|
|
|
2,468
|
|
|
3,819
|
|
|
2,122
|
|
|
2,410
|
|
(Loss)/income from
operating investments, net
|
(3)
|
|
|
75
|
|
|
17
|
|
|
38
|
|
General and
administrative expense
|
(1,531)
|
|
|
(2,072)
|
|
|
(668)
|
|
|
(1,040)
|
|
Research and
development expense, net
|
(1,331)
|
|
|
(996)
|
|
|
(698)
|
|
|
(497)
|
|
Gain on dispositions,
net
|
2
|
|
|
114
|
|
|
1
|
|
|
112
|
|
(Loss)/earnings from operations
|
(395)
|
|
|
940
|
|
|
774
|
|
|
1,023
|
|
Other income,
net
|
434
|
|
|
389
|
|
|
253
|
|
|
199
|
|
Interest and debt
expense
|
(1,280)
|
|
|
(1,352)
|
|
|
(650)
|
|
|
(673)
|
|
(Loss)/earnings before income
taxes
|
(1,241)
|
|
|
(23)
|
|
|
377
|
|
|
549
|
|
Income tax
benefit/(expense)
|
159
|
|
|
29
|
|
|
(217)
|
|
|
18
|
|
Net (loss)/earnings
|
(1,082)
|
|
|
6
|
|
|
160
|
|
|
567
|
|
Less: net loss
attributable to noncontrolling interest
|
(56)
|
|
|
(44)
|
|
|
(33)
|
|
|
(20)
|
|
Net (loss)/earnings attributable to Boeing
Shareholders
|
($1,026)
|
|
|
$50
|
|
|
$193
|
|
|
$587
|
|
|
|
|
|
|
|
|
|
Basic (loss)/earnings per share
|
($1.73)
|
|
|
$0.09
|
|
|
$0.32
|
|
|
$1.00
|
|
|
|
|
|
|
|
|
|
Diluted (loss)/earnings per
share
|
($1.73)
|
|
|
$0.09
|
|
|
$0.32
|
|
|
$1.00
|
|
|
|
|
|
|
|
|
|
Weighted average diluted shares
(millions)
|
592.8
|
|
588.6
|
|
596.4
|
|
590.2
|
The Boeing Company
and Subsidiaries
|
Consolidated
Statements of Financial Position
|
(Unaudited)
|
|
(Dollars in millions, except per share
data)
|
June 30
2022
|
|
December 31
2021
|
Assets
|
|
|
|
Cash and cash
equivalents
|
$10,090
|
|
|
$8,052
|
|
Short-term and other
investments
|
1,358
|
|
|
8,192
|
|
Accounts receivable,
net
|
2,996
|
|
|
2,641
|
|
Unbilled receivables,
net
|
9,394
|
|
|
8,620
|
|
Current portion of
customer financing, net
|
159
|
|
|
117
|
|
Inventories
|
79,917
|
|
|
78,823
|
|
Other current assets,
net
|
2,086
|
|
|
2,221
|
|
Total current assets
|
106,000
|
|
|
108,666
|
|
Customer financing,
net
|
1,542
|
|
|
1,695
|
|
Property, plant and
equipment, net of accumulated depreciation of $20,971 and
$20,538
|
10,617
|
|
|
10,918
|
|
Goodwill
|
8,055
|
|
|
8,068
|
|
Acquired intangible
assets, net
|
2,431
|
|
|
2,562
|
|
Deferred income
taxes
|
106
|
|
|
77
|
|
Investments
|
981
|
|
|
975
|
|
Other assets, net of
accumulated amortization of of $864 and $975
|
5,747
|
|
|
5,591
|
|
Total assets
|
$135,479
|
|
|
$138,552
|
|
Liabilities and equity
|
|
|
|
Accounts
payable
|
$9,575
|
|
|
$9,261
|
|
Accrued
liabilities
|
17,752
|
|
|
18,455
|
|
Advances and progress
billings
|
52,066
|
|
|
52,980
|
|
Short-term debt and
current portion of long-term debt
|
5,406
|
|
|
1,296
|
|
Total current liabilities
|
84,799
|
|
|
81,992
|
|
Deferred income
taxes
|
38
|
|
|
218
|
|
Accrued retiree health
care
|
3,413
|
|
|
3,528
|
|
Accrued pension plan
liability, net
|
8,335
|
|
|
9,104
|
|
Other long-term
liabilities
|
1,891
|
|
|
1,750
|
|
Long-term
debt
|
51,794
|
|
|
56,806
|
|
Total liabilities
|
150,270
|
|
|
153,398
|
|
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
|
9,475
|
|
|
9,052
|
|
Treasury stock, at cost - 418,809,934 and 423,343,707
shares
|
(51,319)
|
|
|
(51,861)
|
|
Retained
earnings
|
33,382
|
|
|
34,408
|
|
Accumulated other
comprehensive loss
|
(11,487)
|
|
|
(11,659)
|
|
Total shareholders' deficit
|
(14,888)
|
|
|
(14,999)
|
|
Noncontrolling
interests
|
97
|
|
|
153
|
|
Total equity
|
(14,791)
|
|
|
(14,846)
|
|
Total liabilities and equity
|
$135,479
|
|
|
$138,552
|
|
The Boeing Company
and Subsidiaries
|
Consolidated
Statements of Cash Flows
|
(Unaudited)
|
|
|
Six months ended
June 30
|
(Dollars in millions)
|
2022
|
|
2021
|
Cash flows – operating
activities:
|
|
|
|
Net
(loss)/earnings
|
($1,082)
|
|
|
$6
|
|
Adjustments to
reconcile net (loss)/earnings to net cash used by operating
activities:
|
|
|
|
Non-cash items
–
|
|
|
|
Share-based plans
expense
|
352
|
|
|
493
|
|
Treasury shares issued
for 401(k) contribution
|
612
|
|
|
628
|
|
Depreciation and
amortization
|
984
|
|
|
1,087
|
|
Investment/asset
impairment charges, net
|
72
|
|
|
38
|
|
Customer financing
valuation adjustments
|
42
|
|
|
(1)
|
|
Gain on dispositions,
net
|
(2)
|
|
|
(114)
|
|
Other charges and
credits, net
|
260
|
|
|
(1)
|
|
Changes in assets and
liabilities –
|
|
|
|
Accounts
receivable
|
(350)
|
|
|
(523)
|
|
Unbilled
receivables
|
(758)
|
|
|
(1,207)
|
|
Advances and progress
billings
|
(907)
|
|
|
251
|
|
Inventories
|
(1,260)
|
|
|
413
|
|
Other current
assets
|
144
|
|
|
324
|
|
Accounts
payable
|
395
|
|
|
(2,035)
|
|
Accrued
liabilities
|
(835)
|
|
|
(2,613)
|
|
Income taxes
receivable, payable and deferred
|
(238)
|
|
|
(130)
|
|
Other long-term
liabilities
|
(64)
|
|
|
(127)
|
|
Pension and other
postretirement plans
|
(695)
|
|
|
(576)
|
|
Customer financing,
net
|
50
|
|
|
83
|
|
Other
|
145
|
|
|
134
|
|
Net cash used by operating
activities
|
(3,135)
|
|
|
(3,870)
|
|
Cash flows – investing
activities:
|
|
|
|
Payments to acquire
property, plant and equipment
|
(612)
|
|
|
(513)
|
|
Proceeds from disposals
of property, plant and equipment
|
16
|
|
|
51
|
|
Contributions to
investments
|
(2,471)
|
|
|
(20,108)
|
|
Proceeds from
investments
|
9,296
|
|
|
24,989
|
|
Other
|
2
|
|
|
4
|
|
Net cash provided by investing
activities
|
6,231
|
|
|
4,423
|
|
Cash flows – financing
activities:
|
|
|
|
New
borrowings
|
15
|
|
|
9,826
|
|
Debt
repayments
|
(1,013)
|
|
|
(9,882)
|
|
Stock options
exercised
|
34
|
|
|
29
|
|
Employee taxes on
certain share-based payment arrangements
|
(34)
|
|
|
(40)
|
|
Net cash used by financing
activities
|
(998)
|
|
|
(67)
|
|
Effect of exchange rate
changes on cash and cash equivalents
|
(71)
|
|
|
(14)
|
|
Net increase in cash & cash equivalents,
including restricted
|
2,027
|
|
|
472
|
|
Cash & cash
equivalents, including restricted, at beginning of year
|
8,104
|
|
|
7,835
|
|
Cash & cash equivalents, including restricted, at
end of period
|
10,131
|
|
|
8,307
|
|
Less restricted cash
& cash equivalents, included in Investments
|
41
|
|
|
36
|
|
Cash & cash equivalents at end of
period
|
$10,090
|
|
|
$8,271
|
|
The Boeing Company
and Subsidiaries
|
Summary of Business
Segment Data
|
(Unaudited)
|
|
|
Six months ended
June 30
|
|
Three months ended
June 30
|
(Dollars in millions)
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Revenues:
|
|
|
|
|
|
|
|
Commercial
Airplanes
|
$10,380
|
|
|
$10,284
|
|
|
$6,219
|
|
|
$6,015
|
|
Defense, Space &
Security
|
11,674
|
|
|
14,061
|
|
|
6,191
|
|
|
6,876
|
|
Global
Services
|
8,612
|
|
|
7,816
|
|
|
4,298
|
|
|
4,067
|
|
Boeing
Capital
|
98
|
|
|
138
|
|
|
52
|
|
|
78
|
|
Unallocated items,
eliminations and other
|
(92)
|
|
|
(84)
|
|
|
(79)
|
|
|
(38)
|
|
Total revenues
|
$30,672
|
|
|
$32,215
|
|
|
$16,681
|
|
|
$16,998
|
|
Earnings/(loss) from
operations:
|
|
|
|
|
|
|
|
Commercial
Airplanes
|
($1,101)
|
|
|
($1,328)
|
|
|
($242)
|
|
|
($472)
|
|
Defense, Space &
Security
|
(858)
|
|
|
1,363
|
|
|
71
|
|
|
958
|
|
Global
Services
|
1,360
|
|
|
972
|
|
|
728
|
|
|
531
|
|
Boeing
Capital
|
(9)
|
|
|
57
|
|
|
27
|
|
|
36
|
|
Segment operating
(loss)/earnings
|
(608)
|
|
|
1,064
|
|
|
584
|
|
|
1,053
|
|
Unallocated items,
eliminations and other
|
(354)
|
|
|
(662)
|
|
|
(94)
|
|
|
(298)
|
|
FAS/CAS service cost
adjustment
|
567
|
|
|
538
|
|
|
284
|
|
|
268
|
|
(Loss)/earnings from operations
|
(395)
|
|
|
940
|
|
|
774
|
|
|
1,023
|
|
Other income,
net
|
434
|
|
|
389
|
|
|
253
|
|
|
199
|
|
Interest and debt
expense
|
(1,280)
|
|
|
(1,352)
|
|
|
(650)
|
|
|
(673)
|
|
(Loss)/earnings before income
taxes
|
(1,241)
|
|
|
(23)
|
|
|
377
|
|
|
549
|
|
Income tax
benefit/(expense)
|
159
|
|
|
29
|
|
|
(217)
|
|
|
18
|
|
Net (loss)/earnings
|
(1,082)
|
|
|
6
|
|
|
160
|
|
|
567
|
|
Less: Net loss
attributable to noncontrolling interest
|
(56)
|
|
|
(44)
|
|
|
(33)
|
|
|
(20)
|
|
Net (loss)/earnings attributable to Boeing
Shareholders
|
($1,026)
|
|
|
$50
|
|
|
$193
|
|
|
$587
|
|
Research and development expense,
net:
|
|
|
|
|
|
|
|
Commercial
Airplanes
|
$693
|
|
|
$524
|
|
|
$372
|
|
|
$255
|
|
Defense, Space &
Security
|
466
|
|
|
337
|
|
|
233
|
|
|
174
|
|
Global
Services
|
54
|
|
|
50
|
|
|
27
|
|
|
25
|
|
Other
|
118
|
|
|
85
|
|
|
66
|
|
|
43
|
|
Total research and development expense,
net
|
$1,331
|
|
|
$996
|
|
|
$698
|
|
|
$497
|
|
Unallocated items, eliminations and
other:
|
|
|
|
|
|
|
|
Share-based
plans
|
($108)
|
|
|
($142)
|
|
|
($25)
|
|
|
($14)
|
|
Deferred
compensation
|
166
|
|
|
(94)
|
|
|
124
|
|
|
(42)
|
|
Amortization of
previously capitalized interest
|
(47)
|
|
|
(44)
|
|
|
(24)
|
|
|
(22)
|
|
Research and
development expense, net
|
(118)
|
|
|
(85)
|
|
|
(66)
|
|
|
(43)
|
|
Eliminations and other
unallocated items
|
(247)
|
|
|
(297)
|
|
|
(103)
|
|
|
(177)
|
|
Sub-total (included in core operating
loss)
|
(354)
|
|
|
(662)
|
|
|
(94)
|
|
|
(298)
|
|
Pension FAS/CAS service
cost adjustment
|
413
|
|
|
384
|
|
|
205
|
|
|
191
|
|
Postretirement FAS/CAS
service cost adjustment
|
154
|
|
|
154
|
|
|
79
|
|
|
77
|
|
FAS/CAS service cost adjustment
|
567
|
|
|
538
|
|
|
$284
|
|
|
$268
|
|
Total
|
$213
|
|
|
($124)
|
|
|
$190
|
|
|
($30)
|
|
The Boeing Company
and Subsidiaries
|
Operating and
Financial Data
|
(Unaudited)
|
|
Deliveries
|
|
Six months ended
June 30
|
|
Three months ended
June 30
|
|
Commercial
Airplanes
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
737
|
|
189
|
|
|
113
|
|
|
103
|
|
|
50
|
|
|
747
|
|
3
|
|
|
2
|
|
|
2
|
|
|
1
|
|
|
767
|
|
12
|
|
|
13
|
|
|
7
|
|
|
8
|
|
|
777
|
|
12
|
|
|
14
|
|
|
9
|
|
|
8
|
|
|
787
|
|
0
|
|
|
14
|
|
|
—
|
|
|
12
|
|
|
Total
|
|
216
|
|
|
156
|
|
|
121
|
|
|
79
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Defense, Space &
Security
|
|
|
|
|
|
|
|
|
|
AH-64 Apache
(New)
|
|
13
|
|
15
|
|
6
|
|
6
|
|
AH-64 Apache
(Remanufactured)
|
|
28
|
|
31
|
|
13
|
|
16
|
|
CH-47 Chinook
(New)
|
|
9
|
|
6
|
|
5
|
|
3
|
|
CH-47 Chinook
(Renewed)
|
|
4
|
|
4
|
|
1
|
|
1
|
|
F-15 Models
|
|
5
|
|
8
|
|
4
|
|
5
|
|
F/A-18
Models
|
|
8
|
|
11
|
|
4
|
|
7
|
|
KC-46 Tanker
|
|
8
|
|
4
|
|
4
|
|
2
|
|
P-8 Models
|
|
6
|
|
6
|
|
3
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
Total backlog (Dollars in millions)
|
|
June 30
2022
|
|
December 31
2021
|
|
Commercial
Airplanes
|
|
$297,044
|
|
|
$296,882
|
|
|
Defense, Space &
Security
|
|
55,401
|
|
|
59,828
|
|
|
Global
Services
|
|
18,960
|
|
|
20,496
|
|
|
Unallocated items,
eliminations and other
|
|
325
|
|
|
293
|
|
|
Total backlog
|
|
$371,730
|
|
|
$377,499
|
|
|
|
|
|
|
|
|
Contractual
backlog
|
|
$351,242
|
|
|
$356,362
|
|
|
Unobligated
backlog
|
|
20,488
|
|
|
21,137
|
|
|
Total backlog
|
|
$371,730
|
|
|
$377,499
|
|
|
|
|
|
|
|
|
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
(loss)/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)
|
|
Second Quarter 2022
|
|
Second Quarter
2021
|
|
|
$ millions
|
Per Share
|
|
$ millions
|
Per Share
|
Revenues
|
|
16,681
|
|
|
|
16,998
|
|
|
Earnings from operations (GAAP)
|
|
774
|
|
|
|
1,023
|
|
|
Operating margin (GAAP)
|
|
4.6
|
%
|
|
|
6.0
|
%
|
|
|
|
|
|
|
|
|
FAS/CAS service cost
adjustment:
|
|
|
|
|
|
|
Pension FAS/CAS service
cost adjustment
|
|
(205)
|
|
|
|
(191)
|
|
|
Postretirement FAS/CAS
service cost adjustment
|
|
(79)
|
|
|
|
(77)
|
|
|
FAS/CAS service cost adjustment
|
|
(284)
|
|
|
|
(268)
|
|
|
Core operating earnings
(non-GAAP)
|
|
$490
|
|
|
|
$755
|
|
|
Core operating margin
(non-GAAP)
|
|
2.9
|
%
|
|
|
4.4
|
%
|
|
|
|
|
|
|
|
|
Diluted earnings per share
(GAAP)
|
|
|
$0.32
|
|
|
|
$1.00
|
|
Pension FAS/CAS service
cost adjustment
|
|
($205)
|
|
(0.35)
|
|
|
($191)
|
|
(0.32)
|
|
Postretirement FAS/CAS
service cost adjustment
|
|
(79)
|
|
(0.13)
|
|
|
(77)
|
|
(0.13)
|
|
Non-operating pension
expense
|
|
(221)
|
|
(0.37)
|
|
|
(175)
|
|
(0.30)
|
|
Non-operating
postretirement expense
|
|
(14)
|
|
(0.02)
|
|
|
(5)
|
|
(0.01)
|
|
Provision for deferred income taxes on
adjustments 1
|
|
109
|
|
0.18
|
|
|
94
|
|
0.16
|
|
Subtotal of adjustments
|
|
($410)
|
|
($0.69)
|
|
|
($354)
|
|
($0.60)
|
|
Core (loss)/earnings per share
(non-GAAP)
|
|
|
($0.37)
|
|
|
|
$0.40
|
|
|
|
|
|
|
|
|
Weighted average diluted shares (in
millions)
|
|
|
596.4
|
|
|
|
590.2
|
1
The income tax impact is calculated using the U.S. corporate
statutory tax rate.
|
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 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 Half 2022
|
|
First Half
2021
|
|
|
$ millions
|
Per Share
|
|
$ millions
|
Per Share
|
Revenues
|
|
30,672
|
|
|
|
32,215
|
|
|
(Loss)/earnings from operations
(GAAP)
|
|
(395)
|
|
|
|
940
|
|
|
Operating margin (GAAP)
|
|
(1.3)
|
%
|
|
|
2.9
|
%
|
|
|
|
|
|
|
|
|
FAS/CAS service cost
adjustment:
|
|
|
|
|
|
|
Pension FAS/CAS service
cost adjustment
|
|
(413)
|
|
|
|
(384)
|
|
|
Postretirement FAS/CAS
service cost adjustment
|
|
(154)
|
|
|
|
(154)
|
|
|
FAS/CAS service cost adjustment
|
|
(567)
|
|
|
|
(538)
|
|
|
Core operating (loss)/earnings
(non-GAAP)
|
|
($962)
|
|
|
|
$402
|
|
|
Core operating margin
(non-GAAP)
|
|
(3.1)
|
%
|
|
|
1.2
|
%
|
|
|
|
|
|
|
|
|
Diluted (loss)/earnings per share
(GAAP)
|
|
|
($1.73)
|
|
|
|
$0.09
|
|
Pension FAS/CAS service
cost adjustment
|
|
($413)
|
|
(0.70)
|
|
|
($384)
|
|
(0.65)
|
|
Postretirement FAS/CAS
service cost adjustment
|
|
(154)
|
|
(0.26)
|
|
|
(154)
|
|
(0.26)
|
|
Non-operating pension
expense
|
|
(441)
|
|
(0.74)
|
|
|
(352)
|
|
(0.60)
|
|
Non-operating
postretirement expense
|
|
(29)
|
|
(0.05)
|
|
|
(10)
|
|
(0.02)
|
|
Provision for deferred income taxes on
adjustments 1
|
|
218
|
|
0.37
|
|
|
189
|
|
0.32
|
|
Subtotal of adjustments
|
|
($819)
|
|
($1.38)
|
|
|
($711)
|
|
($1.21)
|
|
Core loss per share (non-GAAP)
|
|
|
($3.11)
|
|
|
|
($1.12)
|
|
|
|
|
|
|
|
|
Weighted average diluted shares (in
millions)
|
|
|
592.8
|
|
|
|
588.6
|
1
The income tax impact is calculated using the U.S. corporate
statutory tax rate.
|
View original
content:https://www.prnewswire.com/news-releases/boeing-reports-second-quarter-results-301594262.html
SOURCE Boeing