ARLINGTON, Va., April 26,
2023 /PRNewswire/ --
First Quarter 2023
- Still expect to deliver 400-450 737 airplanes in 2023; plan
to increase production to 38 per month later this year
- Revenue increased to $17.9
billion primarily reflecting 130 commercial
deliveries
- Operating cash flow of ($0.3)
billion and free cash flow of ($0.8)
billion (non-GAAP); cash and marketable securities of
$14.8 billion
- Total company backlog of $411
billion, including over 4,500 commercial airplanes
- Reaffirm guidance: $4.5-$6.5 billion
of operating cash flow and $3.0-$5.0 billion
of free cash flow (non-GAAP)
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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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2023
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2022
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Change
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Revenues
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$17,921
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$13,991
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28 %
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GAAP
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Loss From Operations
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($149)
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($1,162)
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NM
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Operating Margin
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(0.8)
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%
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(8.3)
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%
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NM
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Net Loss
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($425)
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($1,242)
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NM
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Loss Per Share
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($0.69)
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($2.06)
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NM
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Operating Cash Flow
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($318)
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($3,216)
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NM
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Non-GAAP*
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Core Operating Loss
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($440)
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($1,445)
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NM
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Core Operating Margin
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(2.5)
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%
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(10.3)
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%
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NM
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Core Loss Per Share
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($1.27)
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($2.75)
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NM
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*Non-GAAP measure;
complete definitions of Boeing's non-GAAP measures are on page 5,
"Non-GAAP Measures Disclosures."
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The Boeing Company [NYSE: BA] recorded first-quarter revenue of
$17.9 billion, GAAP loss per share of
($0.69), and core loss per share
(non-GAAP)* of ($1.27) (Table 1).
Boeing reported operating cash flow of ($0.3) billion and free cash flow of ($0.8) billion (non-GAAP). Results improved on
commercial volume and performance.
"We delivered a solid first quarter and are focused on driving
stability for our customers," said Dave
Calhoun, Boeing president and chief executive officer. "We
are progressing through recent supply chain disruptions but remain
confident in the goals we set for this year, as well as for the
longer term. Demand is strong across our key markets and we are
growing investments to advance our development programs and
innovate strategic capabilities for our customers and for our
future."
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Table 2. Cash Flow
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First Quarter
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(Millions)
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2023
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2022
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Operating Cash Flow
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($318)
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($3,216)
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Less Additions to
Property, Plant & Equipment
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($468)
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($349)
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Free Cash Flow*
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($786)
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($3,565)
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*Non-GAAP measure;
complete definitions of Boeing's non-GAAP measures are on page 5,
"Non-GAAP Measures Disclosures."
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Operating cash flow was ($0.3)
billion in the quarter reflecting higher commercial
deliveries and favorable receipt timing (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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Q1 23
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Q4 22
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Cash
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$10.8
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$14.6
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Marketable Securities1
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$4.0
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$2.6
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Total
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$14.8
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$17.2
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Consolidated Debt
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$55.4
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$57.0
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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 totaled
$14.8 billion, compared to
$17.2 billion at the beginning of the
quarter (Table 3). Debt was $55.4 billion, down from $57.0 billion at the beginning of the
quarter due to the pay down of debt maturities. The company has
access to credit facilities of $12.0
billion, which remain undrawn.
Total company backlog at quarter-end was $411 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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2023
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2022
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Change
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Commercial Airplanes Deliveries
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130
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95
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37 %
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Revenues
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$6,704
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$4,194
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60 %
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Loss from Operations
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($615)
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($897)
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NM
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Operating Margin
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(9.2)
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%
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(21.4)
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%
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NM
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Commercial Airplanes first-quarter revenue increased to
$6.7 billion driven by higher
737 and 787 deliveries, partially offset by 787 customer
considerations (Table 4). Operating margin of (9.2) percent also
reflects abnormal costs and period expenses, including research and
development.
On the 737 program, earlier this month the program's fuselage
supplier notified Boeing that a non-standard manufacturing process
was used on two fittings in the aft fuselage section of certain 737
airplanes. This is not an immediate safety of flight issue and the
in-service fleet can continue operating safely. While near-term
deliveries and production will be impacted as the program performs
necessary inspections and rework, the program still expects to
deliver 400-450 airplanes this year. On production, the supplier
master schedule remains unchanged including anticipated production
rate increases, which will result in higher inventory levels. The
company expects final assembly production to recover in the coming
months with plans to increase to 38 per month later this year and
50 per month in the 2025/2026 timeframe.
The 787 program is producing at three per month with plans to
ramp production to five per month in late 2023 and to 10 per month
in the 2025/2026 timeframe.
During the quarter, Commercial Airplanes secured net orders of
107. Also during the quarter the company secured commitments from
Air India for 190 737 MAX, 20 787, and 10 777X airplanes and from
Riyadh Air and Saudi Arabian Airlines for up to 121 787 airplanes.
Commercial Airplanes delivered 130 airplanes during the quarter and
backlog included over 4,500 airplanes valued at $334 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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2023
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2022
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Change
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Revenues
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$6,539
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$5,483
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19 %
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Loss from Operations
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($212)
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($929)
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NM
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Operating Margin
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(3.2)
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%
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(16.9)
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%
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NM
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Defense, Space & Security first-quarter revenue was
$6.5 billion. First-quarter operating
margin of (3.2) percent primarily reflects a $245 million pre-tax charge on the KC-46A Tanker
program largely driven by the previously shared supplier quality
issue resulting in factory disruption and rework. Results also
include the continued operational impact of labor instability and
supply chain disruption on other programs.
During the quarter, Defense, Space & Security captured
awards from the U.S. Army for 184 Apaches and from the U.S. Air
Force for 15 KC-46A Tankers and the initial E-7 development
contract. Backlog at Defense, Space & Security was $58 billion, of which 30 percent represents
orders from customers outside the U.S.
Global Services
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Table 6. Global Services
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First Quarter
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(Dollars in Millions)
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2023
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2022
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Change
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Revenues
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$4,720
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$4,314
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9 %
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Earnings from Operations
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$847
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$632
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34 %
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Operating Margin
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17.9
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%
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14.6
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%
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3.3 pts
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Global Services first-quarter revenue of $4.7 billion and operating margin of 17.9 percent
reflect higher commercial volume and favorable mix.
During the quarter, Global Services committed to set up the
first Boeing Converted Freighter line in India in collaboration with GMR Aero Technic,
delivered AerCap's 50th 737-800 Boeing Converted Freighter and
broke ground on a new component operations facility in Jacksonville, Florida.
Additional Financial Information
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Table 7. Additional Financial
Information
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First Quarter
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(Dollars in Millions)
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2023
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2022
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Revenues
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Unallocated items,
eliminations and other
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($42)
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$—
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Earnings/(loss) from Operations
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FAS/CAS service cost
adjustment
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$291
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$283
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Other unallocated items
and eliminations
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($460)
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($251)
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Other income, net
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$302
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$181
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Interest and debt expense
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($649)
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($637)
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Effective tax rate
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14.3
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%
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23.2
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%
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The increase in loss from Other unallocated items and
eliminations was driven by timing of allocations and deferred
compensation expense. Other income primarily reflects an increase
in investment income due to higher interest rates. The
first-quarter effective tax rate primarily reflects the tax benefit
of pretax losses.
Segment results reflect the realignment of Boeing Capital into
the Commercial Airplanes segment during the first quarter of 2023.
Prior period amounts have also been reclassified to conform to the
2023 presentation.
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, Core Operating Margin and Core Loss Per
Share
Core operating loss 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 loss expressed as a
percentage of revenue. Core loss 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 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, core operating margin and core loss per share for
purposes of evaluating and forecasting underlying business
performance. Management believes these core 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
non-GAAP and 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. See Table 2 on page 2 and page
14 for reconciliations 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) 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 commercial aircraft production rate changes, our
ability to successfully develop and certify new aircraft or new
derivative aircraft, and the ability of our aircraft to meet
stringent performance and reliability standards; (4) changing
budget and appropriation levels and acquisition priorities of the
U.S. government, as well as the potential impact of a government
shutdown; (5) our dependence on our subcontractors and suppliers,
as well as the availability of highly skilled labor and raw
materials; (6) competition within our markets; (7) our non-U.S.
operations and sales to non-U.S. customers; (8) changes in
accounting estimates; (9) realizing the anticipated benefits of
mergers, acquisitions, joint ventures/strategic alliances or
divestitures; (10) our dependence on U.S. government contracts;
(11) our reliance on fixed-price contracts; (12) our reliance on
cost-type contracts; (13) contracts that include in-orbit incentive
payments; (14) unauthorized access to our, our customers' and/or
our suppliers' information and systems; (15) potential business
disruptions, including threats to physical security or our
information technology systems, extreme weather (including effects
of climate change) or other acts of nature, and pandemics or other
public health crises; (16) potential adverse developments in new or
pending litigation and/or government inquiries or investigations;
(17) potential environmental liabilities; (18) effects of climate
change and legal, regulatory or market responses to such change;
(19) changes in our ability to obtain debt financing on
commercially reasonable terms, at competitive rates and in
sufficient amounts; (20) substantial pension and other
postretirement benefit obligations; (21) the adequacy of our
insurance coverage; (22) customer and aircraft concentration in our
customer financing portfolio; and (23) work stoppages or other
labor disruptions.
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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Matt Welch or David
Dufault (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
Consolidated
Statements of Operations
(Unaudited)
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|
Three months ended
March 31
|
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(Dollars in millions, except per share
data)
|
2023
|
|
2022
|
|
|
|
|
Sales of
products
|
$14,914
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|
|
$11,427
|
|
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Sales of
services
|
3,007
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|
2,564
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|
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Total revenues
|
17,921
|
|
|
13,991
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|
|
|
|
|
|
|
|
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Cost of
products
|
(13,553)
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|
|
(11,412)
|
|
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Cost of
services
|
(2,445)
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|
|
(2,226)
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|
|
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Total costs and expenses
|
(15,998)
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|
|
(13,638)
|
|
|
|
|
|
|
1,923
|
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|
353
|
|
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|
|
|
Loss from operating
investments, net
|
(27)
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|
|
(20)
|
|
|
|
|
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General and
administrative expense
|
(1,304)
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|
|
(863)
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|
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|
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Research and
development expense, net
|
(741)
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|
|
(633)
|
|
|
|
|
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Gain on dispositions,
net
|
|
|
|
1
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|
|
|
|
|
Loss from operations
|
(149)
|
|
|
(1,162)
|
|
|
|
|
|
Other income,
net
|
302
|
|
|
181
|
|
|
|
|
|
Interest and debt
expense
|
(649)
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|
|
(637)
|
|
|
|
|
|
Loss before income taxes
|
(496)
|
|
|
(1,618)
|
|
|
|
|
|
Income tax
benefit
|
71
|
|
|
376
|
|
|
|
|
|
Net loss
|
(425)
|
|
|
(1,242)
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|
|
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Less: net loss
attributable to noncontrolling interest
|
(11)
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|
|
(23)
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|
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Net loss attributable to Boeing
Shareholders
|
($414)
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|
|
($1,219)
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|
|
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|
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|
|
Basic loss per share
|
($0.69)
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|
|
($2.06)
|
|
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|
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|
Diluted loss per share
|
($0.69)
|
|
|
($2.06)
|
|
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|
|
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|
|
|
|
|
|
Weighted average diluted shares
(millions)
|
602.5
|
|
591.7
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|
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The Boeing Company
and Subsidiaries
Consolidated
Statements of Financial Position
(Unaudited)
|
|
(Dollars in millions, except per share
data)
|
March 31
2023
|
|
December 31
2022
|
Assets
|
|
|
|
Cash and cash
equivalents
|
$10,812
|
|
|
$14,614
|
|
Short-term and other
investments
|
3,955
|
|
|
2,606
|
|
Accounts receivable,
net
|
2,862
|
|
|
2,517
|
|
Unbilled receivables,
net
|
9,689
|
|
|
8,634
|
|
Current portion of
customer financing, net
|
133
|
|
|
154
|
|
Inventories
|
78,503
|
|
|
78,151
|
|
Other current assets,
net
|
2,857
|
|
|
2,847
|
|
Total current assets
|
108,811
|
|
|
109,523
|
|
Customer financing,
net
|
1,372
|
|
|
1,450
|
|
Property, plant and
equipment, net of accumulated depreciation of $21,692 and
$21,442
|
10,493
|
|
|
10,550
|
|
Goodwill
|
8,063
|
|
|
8,057
|
|
Acquired intangible
assets, net
|
2,254
|
|
|
2,311
|
|
Deferred income
taxes
|
65
|
|
|
63
|
|
Investments
|
969
|
|
|
983
|
|
Other assets, net of
accumulated amortization of of $1,002 and $949
|
4,320
|
|
|
4,163
|
|
Total assets
|
$136,347
|
|
|
$137,100
|
|
Liabilities and equity
|
|
|
|
Accounts
payable
|
$10,274
|
|
|
$10,200
|
|
Accrued
liabilities
|
20,812
|
|
|
21,581
|
|
Advances and progress
billings
|
54,498
|
|
|
53,081
|
|
Short-term debt and
current portion of long-term debt
|
7,926
|
|
|
5,190
|
|
Total current liabilities
|
93,510
|
|
|
90,052
|
|
Deferred income
taxes
|
194
|
|
|
230
|
|
Accrued retiree health
care
|
2,466
|
|
|
2,503
|
|
Accrued pension plan
liability, net
|
5,998
|
|
|
6,141
|
|
Other long-term
liabilities
|
2,198
|
|
|
2,211
|
|
Long-term
debt
|
47,465
|
|
|
51,811
|
|
Total liabilities
|
151,831
|
|
|
152,948
|
|
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
|
10,298
|
|
|
9,947
|
|
Treasury stock, at cost - 410,984,640 and 414,671,383
shares
|
(50,376)
|
|
|
(50,814)
|
|
Retained
earnings
|
29,059
|
|
|
29,473
|
|
Accumulated other
comprehensive loss
|
(9,550)
|
|
|
(9,550)
|
|
Total shareholders' deficit
|
(15,508)
|
|
|
(15,883)
|
|
Noncontrolling
interests
|
24
|
|
|
35
|
|
Total equity
|
(15,484)
|
|
|
(15,848)
|
|
Total liabilities and equity
|
$136,347
|
|
|
$137,100
|
|
The Boeing Company
and Subsidiaries
Consolidated
Statements of Cash Flows
(Unaudited)
|
|
|
Three months ended
March 31
|
(Dollars in millions)
|
2023
|
|
2022
|
Cash flows – operating
activities:
|
|
|
|
Net loss
|
($425)
|
|
|
($1,242)
|
|
Adjustments to
reconcile net loss to net cash used by operating
activities:
|
|
|
|
Non-cash items
–
|
|
|
|
Share-based plans
expense
|
222
|
|
|
203
|
|
Treasury shares issued
for 401(k) contribution
|
553
|
|
|
329
|
|
Depreciation and
amortization
|
457
|
|
|
486
|
|
Investment/asset
impairment charges, net
|
11
|
|
|
72
|
|
Customer financing
valuation adjustments
|
(1)
|
|
|
48
|
|
Gain on dispositions,
net
|
|
|
|
(1)
|
|
Other charges and
credits, net
|
34
|
|
|
175
|
|
Changes in assets and
liabilities –
|
|
|
|
Accounts
receivable
|
(341)
|
|
|
237
|
|
Unbilled
receivables
|
(1,055)
|
|
|
(356)
|
|
Advances and progress
billings
|
1,417
|
|
|
(522)
|
|
Inventories
|
(390)
|
|
|
(1,203)
|
|
Other current
assets
|
82
|
|
|
140
|
|
Accounts
payable
|
231
|
|
|
(369)
|
|
Accrued
liabilities
|
(769)
|
|
|
(594)
|
|
Income taxes
receivable, payable and deferred
|
(122)
|
|
|
(403)
|
|
Other long-term
liabilities
|
(117)
|
|
|
96
|
|
Pension and other
postretirement plans
|
(244)
|
|
|
(371)
|
|
Customer financing,
net
|
101
|
|
|
18
|
|
Other
|
38
|
|
|
41
|
|
Net cash used by operating
activities
|
(318)
|
|
|
(3,216)
|
|
Cash flows – investing
activities:
|
|
|
|
Payments to acquire
property, plant and equipment
|
(468)
|
|
|
(349)
|
|
Proceeds from disposals
of property, plant and equipment
|
5
|
|
|
8
|
|
Contributions to
investments
|
(3,561)
|
|
|
(1,732)
|
|
Proceeds from
investments
|
2,203
|
|
|
5,037
|
|
Other
|
(2)
|
|
|
1
|
|
Net cash (used)/provided by investing
activities
|
(1,823)
|
|
|
2,965
|
|
Cash flows – financing
activities:
|
|
|
|
New
borrowings
|
17
|
|
|
2
|
|
Debt
repayments
|
(1,699)
|
|
|
(396)
|
|
Stock options
exercised
|
44
|
|
|
30
|
|
Employee taxes on
certain share-based payment arrangements
|
(42)
|
|
|
(32)
|
|
Net cash used by financing
activities
|
(1,680)
|
|
|
(396)
|
|
Effect of exchange rate
changes on cash and cash equivalents
|
10
|
|
|
(3)
|
|
Net decrease in cash & cash equivalents,
including restricted
|
(3,811)
|
|
|
(650)
|
|
Cash & cash
equivalents, including restricted, at beginning of year
|
14,647
|
|
|
8,104
|
|
Cash & cash equivalents, including restricted, at
end of period
|
10,836
|
|
|
7,454
|
|
Less restricted cash
& cash equivalents, included in Investments
|
24
|
|
|
45
|
|
Cash & cash equivalents at end of
period
|
$10,812
|
|
|
$7,409
|
|
The Boeing Company
and Subsidiaries
Summary of Business
Segment Data
(Unaudited)
|
|
|
Three months ended
March 31
|
|
|
|
|
|
|
|
|
(Dollars in millions)
|
2023
|
|
2022
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
Commercial
Airplanes
|
$6,704
|
|
|
$4,194
|
|
|
|
|
|
Defense, Space &
Security
|
6,539
|
|
|
5,483
|
|
|
|
|
|
Global
Services
|
4,720
|
|
|
4,314
|
|
|
|
|
|
Unallocated items,
eliminations and other
|
(42)
|
|
|
|
|
|
|
|
|
Total revenues
|
$17,921
|
|
|
$13,991
|
|
|
|
|
|
Loss from
operations:
|
|
|
|
|
|
|
|
Commercial
Airplanes
|
($615)
|
|
|
($897)
|
|
|
|
|
|
Defense, Space &
Security
|
(212)
|
|
|
(929)
|
|
|
|
|
|
Global
Services
|
847
|
|
|
632
|
|
|
|
|
|
Segment operating
earnings/(loss)
|
20
|
|
|
(1,194)
|
|
|
|
|
|
Unallocated items,
eliminations and other
|
(460)
|
|
|
(251)
|
|
|
|
|
|
FAS/CAS service cost
adjustment
|
291
|
|
|
283
|
|
|
|
|
|
Loss from operations
|
(149)
|
|
|
(1,162)
|
|
|
|
|
|
Other income,
net
|
302
|
|
|
181
|
|
|
|
|
|
Interest and debt
expense
|
(649)
|
|
|
(637)
|
|
|
|
|
|
Loss before income taxes
|
(496)
|
|
|
(1,618)
|
|
|
|
|
|
Income tax
benefit
|
71
|
|
|
376
|
|
|
|
|
|
Net loss
|
(425)
|
|
|
(1,242)
|
|
|
|
|
|
Less: net loss
attributable to noncontrolling interest
|
(11)
|
|
|
(23)
|
|
|
|
|
|
Net loss attributable to Boeing
Shareholders
|
($414)
|
|
|
($1,219)
|
|
|
|
|
|
Research and development expense,
net:
|
|
|
|
|
|
|
|
Commercial
Airplanes
|
$444
|
|
|
$321
|
|
|
|
|
|
Defense, Space &
Security
|
195
|
|
|
233
|
|
|
|
|
|
Global
Services
|
26
|
|
|
27
|
|
|
|
|
|
Other
|
76
|
|
|
52
|
|
|
|
|
|
Total research and development expense,
net
|
$741
|
|
|
$633
|
|
|
|
|
|
Unallocated items, eliminations and
other:
|
|
|
|
|
|
|
|
Share-based
plans
|
($52)
|
|
|
($83)
|
|
|
|
|
|
Deferred
compensation
|
(54)
|
|
|
42
|
|
|
|
|
|
Amortization of
previously capitalized interest
|
(23)
|
|
|
(23)
|
|
|
|
|
|
Research and
development expense, net
|
(76)
|
|
|
(52)
|
|
|
|
|
|
Eliminations and other
unallocated items
|
(255)
|
|
|
(135)
|
|
|
|
|
|
Sub-total (included in core operating
loss)
|
(460)
|
|
|
(251)
|
|
|
|
|
|
Pension FAS/CAS service
cost adjustment
|
223
|
|
|
208
|
|
|
|
|
|
Postretirement FAS/CAS
service cost adjustment
|
68
|
|
|
75
|
|
|
|
|
|
FAS/CAS service cost adjustment
|
291
|
|
|
283
|
|
|
|
|
|
Total
|
($169)
|
|
|
$32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Boeing Company and
Subsidiaries
Notes to Condensed Consolidated Financial
Statements
Summary of Business Segment
Data
(Unaudited)
Segment results reflect the realignment of Boeing Capital into
the Commercial Airplanes segment during the first quarter of 2023.
Interest and debt expense now includes interest and debt expense
previously attributable to Boeing Capital and classified as Cost of
Sales. Revenues and costs related to the Customer Financing
portfolio and the costs of the Boeing Customer Finance team are now
included in the Commercial Airplanes segment. The prior period
amounts have been reclassified to conform to the current periods
presentation as set forth below.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
|
(Dollars in millions)
|
12/31/2022
|
|
9/30/2022
|
|
6/30/2022
|
|
3/31/2022
|
Revenues:
|
|
|
|
|
|
|
|
Commercial
Airplanes
|
$9,271
|
|
|
$6,304
|
|
|
$6,258
|
|
|
$4,194
|
|
Defense, Space &
Security
|
6,181
|
|
|
5,307
|
|
|
6,191
|
|
|
5,483
|
|
Global
Services
|
4,567
|
|
|
4,432
|
|
|
4,298
|
|
|
4,314
|
|
Unallocated items,
eliminations and other
|
(39)
|
|
|
(87)
|
|
|
(66)
|
|
|
|
|
Total revenues
|
$19,980
|
|
|
$15,956
|
|
|
$16,681
|
|
|
$13,991
|
|
(Loss)/earnings from
operations:
|
|
|
|
|
|
|
|
Commercial
Airplanes
|
($603)
|
|
|
($622)
|
|
|
($219)
|
|
|
($897)
|
|
Defense, Space &
Security
|
112
|
|
|
(2,798)
|
|
|
71
|
|
|
(929)
|
|
Global
Services
|
634
|
|
|
733
|
|
|
728
|
|
|
632
|
|
Segment operating
earnings/(loss)
|
143
|
|
|
(2,687)
|
|
|
580
|
|
|
(1,194)
|
|
Unallocated items,
eliminations and other
|
(785)
|
|
|
(384)
|
|
|
(84)
|
|
|
(251)
|
|
FAS/CAS service cost
adjustment
|
297
|
|
|
279
|
|
|
284
|
|
|
283
|
|
(Loss)/earnings from operations
|
(345)
|
|
|
(2,792)
|
|
|
780
|
|
|
(1,162)
|
|
Other income,
net
|
336
|
|
|
288
|
|
|
253
|
|
|
181
|
|
Interest and debt
expense
|
(640)
|
|
|
(628)
|
|
|
(656)
|
|
|
(637)
|
|
(Loss)/earnings before income
taxes
|
(649)
|
|
|
(3,132)
|
|
|
377
|
|
|
(1,618)
|
|
Income tax
(expense)/benefit
|
(14)
|
|
|
(176)
|
|
|
(217)
|
|
|
376
|
|
Net (loss)/earnings
|
($663)
|
|
|
($3,308)
|
|
|
$160
|
|
|
($1,242)
|
|
The Boeing Company
and Subsidiaries
Operating and
Financial Data
(Unaudited)
|
|
Deliveries
|
|
Three months ended
March 31
|
|
|
|
|
|
|
|
|
|
Commercial
Airplanes
|
|
2023
|
|
2022
|
|
|
|
|
|
737
|
|
113
|
|
|
86
|
|
|
|
|
|
|
747
|
|
1
|
|
|
1
|
|
|
|
|
|
|
767
|
|
1
|
|
|
5
|
|
|
|
|
|
|
777
|
|
4
|
|
|
3
|
|
|
|
|
|
|
787
|
|
11
|
|
|
|
|
|
|
|
|
|
Total
|
|
130
|
|
|
95
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Defense, Space &
Security
|
|
|
|
|
|
|
|
|
|
AH-64 Apache
(New)
|
|
7
|
|
|
7
|
|
|
|
|
|
|
AH-64 Apache
(Remanufactured)
|
|
13
|
|
|
15
|
|
|
|
|
|
|
CH-47 Chinook
(New)
|
|
5
|
|
|
4
|
|
|
|
|
|
|
CH-47 Chinook
(Renewed)
|
|
1
|
|
|
3
|
|
|
|
|
|
|
F-15 Models
|
|
2
|
|
|
1
|
|
|
|
|
|
|
F/A-18
Models
|
|
7
|
|
|
4
|
|
|
|
|
|
|
KC-46 Tanker
|
|
1
|
|
|
4
|
|
|
|
|
|
|
P-8 Models
|
|
3
|
|
|
3
|
|
|
|
|
|
|
Commercial and Civil
Satellites
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total backlog (Dollars in millions)
|
|
March 31
2023
|
|
December 31
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
Airplanes
|
|
$333,656
|
|
|
$329,824
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Defense, Space &
Security
|
|
58,150
|
|
|
54,373
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global
Services
|
|
18,835
|
|
|
19,338
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unallocated items,
eliminations and other
|
|
805
|
|
|
846
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total backlog
|
|
$411,446
|
|
|
$404,381
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contractual
backlog
|
|
$388,753
|
|
|
$381,977
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unobligated
backlog
|
|
22,693
|
|
|
22,404
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total backlog
|
|
$411,446
|
|
|
$404,381
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Boeing Company and Subsidiaries
Reconciliation of Non-GAAP Measures
(Unaudited)
The tables provided below reconcile the non-GAAP financial
measures core operating loss, core operating margin, and core loss
per share with the most directly comparable GAAP financial
measures, loss from operations, operating margin, and diluted loss
per share. See page 5 of this release for additional information on
the use of these non-GAAP financial measures.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in millions, except per share
data)
|
|
|
First Quarter 2023
|
First Quarter
2022
|
|
|
|
|
$ millions
|
Per Share
|
|
$ millions
|
Per Share
|
Revenues
|
|
|
|
17,921
|
|
|
|
13,991
|
|
|
Loss from operations (GAAP)
|
|
|
|
(149)
|
|
|
|
(1,162)
|
|
|
Operating margin (GAAP)
|
|
|
|
(0.8)
|
%
|
|
|
(8.3)
|
%
|
|
|
|
|
|
|
|
|
|
|
FAS/CAS service cost
adjustment:
|
|
|
|
|
|
|
|
|
Pension FAS/CAS service
cost adjustment
|
|
|
|
(223)
|
|
|
|
(208)
|
|
|
Postretirement FAS/CAS
service cost adjustment
|
|
|
|
(68)
|
|
|
|
(75)
|
|
|
FAS/CAS service cost adjustment
|
|
|
|
(291)
|
|
|
|
(283)
|
|
|
Core operating loss (non-GAAP)
|
|
|
|
($440)
|
|
|
|
($1,445)
|
|
|
Core operating margin
(non-GAAP)
|
|
|
|
(2.5)
|
%
|
|
|
(10.3)
|
%
|
|
|
|
|
|
|
|
|
|
|
Diluted loss per share (GAAP)
|
|
|
|
|
($0.69)
|
|
|
|
($2.06)
|
|
Pension FAS/CAS service
cost adjustment
|
|
|
|
($223)
|
|
(0.37)
|
|
|
($208)
|
|
(0.35)
|
|
Postretirement FAS/CAS
service cost adjustment
|
|
|
|
|
(68)
|
|
(0.11)
|
|
|
|
(75)
|
|
(0.13)
|
|
Non-operating pension
expense
|
|
|
|
(134)
|
|
(0.23)
|
|
|
(220)
|
|
(0.37)
|
|
Non-operating
postretirement expense
|
|
|
|
|
(15)
|
|
(0.02)
|
|
|
|
(15)
|
|
(0.02)
|
|
Provision for deferred
income taxes on adjustments 1
|
|
|
|
92
|
|
0.15
|
|
|
109
|
|
0.18
|
|
Subtotal of adjustments
|
|
|
|
($348)
|
|
($0.58)
|
|
|
($409)
|
|
($0.69)
|
|
Core loss per share (non-GAAP)
|
|
|
|
|
($1.27)
|
|
|
|
($2.75)
|
|
|
|
|
|
|
|
|
|
|
Weighted average diluted shares (in
millions)
|
|
|
|
|
602.5
|
|
|
|
591.7
|
|
|
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 table provided below reconciles the non-GAAP financial
measure free cash flow with the most directly comparable GAAP
financial measure, operating cash flow. See page 5 of this release
for additional information on the use of this non-GAAP financial
measure.
|
|
|
|
|
|
|
Full Year 2023
|
(dollars in billions)
|
Outlook
|
Operating Cash Flow
|
$4.5 - $6.5
|
Less Additions to
Property, Plant & Equipment
|
($1.5)
|
Free Cash Flow (non-GAAP)
|
$3.0 - $5.0
|
View original
content:https://www.prnewswire.com/news-releases/boeing-reports-first-quarter-results-301808132.html
SOURCE Boeing