ARLINGTON, Va.,
July 26,
2023 /PRNewswire/ --
Second Quarter 2023
- Transitioning 737 production to 38 per month; increased 787
production to four per month
- Revenue increased to $19.8
billion primarily reflecting 136 commercial
deliveries
- Operating cash flow of $2.9
billion and free cash flow of $2.6
billion (non-GAAP); cash and marketable securities of
$13.8 billion
- Total company backlog of $440
billion, including over 4,800 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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Second
Quarter
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First
Half
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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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2023
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2022
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Change
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Revenues
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$19,751
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$16,681
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18 %
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$37,672
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$30,672
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23 %
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GAAP
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(Loss)/earnings from
operations
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($99)
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$780
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NM
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($248)
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($382)
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NM
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Operating
margins
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(0.5)
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%
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4.7
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%
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NM
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(0.7)
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%
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(1.2)
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%
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NM
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Net
(loss)/earnings
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($149)
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$160
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NM
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($574)
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($1,082)
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NM
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(Loss)/earnings per
share
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($0.25)
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$0.32
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NM
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($0.93)
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($1.73)
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NM
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Operating cash
flow
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$2,875
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$81
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NM
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$2,557
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($3,135)
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NM
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Non-GAAP*
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Core operating
(loss)/earnings
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($390)
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$496
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NM
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($830)
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($949)
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NM
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Core operating
margins
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(2.0)
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%
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3.0
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%
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NM
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(2.2)
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%
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(3.1)
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%
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NM
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Core loss per
share
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($0.82)
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($0.37)
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NM
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($2.08)
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($3.11)
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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 second quarter revenue of
$19.8 billion, GAAP loss per
share of ($0.25) and core loss per
share (non-GAAP)* of ($0.82) (Table
1). Second quarter results reflect higher commercial volume and
lower defense margins. Boeing generated operating cash flow of
$2.9 billion and free cash flow
of $2.6 billion (non-GAAP).
"We had a solid second quarter with improved deliveries and
strong free cash flow generation. We are well positioned to meet
the operational and financial goals we set for this year and for
the long term," said Dave Calhoun, Boeing president and chief
executive officer. "While we have more work ahead, we are making
progress in our recovery and driving stability in our factories and
the supply chain to meet our customer commitments. With demand
strong, we're steadily increasing our production rates across key
programs and growing investments in our people, products and
technologies."
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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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2023
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2022
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2023
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2022
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Operating cash
flow
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$2,875
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$81
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$2,557
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($3,135)
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Less additions to
property, plant & equipment
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($296)
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($263)
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($764)
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($612)
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Free cash
flow*
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$2,579
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($182)
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$1,793
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($3,747)
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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 $2.9
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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Q2 23
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Q1 23
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Cash
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$7.3
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$10.8
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Marketable
securities1
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$6.5
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$4.0
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Total
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$13.8
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$14.8
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Consolidated
debt
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$52.3
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$55.4
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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
$13.8 billion, compared to
$14.8 billion at the beginning
of the quarter (Table 3). Debt was $52.3 billion, down from $55.4 billion at the beginning of the
quarter due to the pay down of maturing debt. The company maintains
access to credit facilities of $12.0
billion, which remain undrawn.
Total company backlog at quarter end was $440 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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2023
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2022
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Change
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2023
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2022
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Change
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Deliveries
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136
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121
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12 %
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266
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216
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23 %
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Revenues
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$8,840
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$6,258
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41 %
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$15,544
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$10,452
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49 %
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Loss from
operations
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($383)
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($219)
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NM
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($998)
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($1,116)
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NM
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Operating
margins
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(4.3)
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%
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(3.5)
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NM
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(6.4)
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%
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(10.7)
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%
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NM
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Commercial Airplanes second quarter revenue increased to
$8.8 billion driven by higher
787 deliveries (Table 4). Operating margin of (4.3) percent also
reflects abnormal costs and period expenses, including research and
development.
The 737 program is transitioning production to 38 per month and
plans to reach 50 per month in the 2025/2026 timeframe. The program
still expects to deliver 400-450 airplanes this year.
The 787 program increased production to four per month with
plans to ramp to five per month in late 2023 and 10 per month in
the 2025/2026 timeframe. The program still expects to deliver 70-80
airplanes this year.
During the quarter, Commercial Airplanes booked 460 net orders,
including 220 for Air India and 39 for Riyadh Air, and secured a
commitment from Ryanair for up to 300 737 MAX airplanes. Commercial
Airplanes delivered 136 airplanes during the quarter and backlog
included over 4,800 airplanes valued at $363
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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2023
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2022
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Change
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2023
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2022
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Change
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Revenues
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$6,167
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$6,191
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— %
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$12,706
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$11,674
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9 %
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(Loss)/earnings from
operations
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($527)
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$71
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NM
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($739)
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($858)
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NM
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Operating
margins
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(8.5)
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%
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1.1
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%
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NM
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(5.8)
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%
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(7.3)
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%
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NM
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Defense, Space & Security second quarter revenue was
$6.2 billion. Second quarter
operating margin was (8.5) percent, primarily driven by losses on
certain fixed-price development programs, as well as continued
operational impacts of labor instability and supply chain
disruption on other programs. The Commercial Crew program recorded
a $257 million loss primarily due to
the impacts of the previously announced launch delay. The T-7A
program recorded a $189 million loss
primarily due to higher estimated costs on production contracts.
The MQ-25 program also recorded a $68
million loss primarily due to schedule delays on the
Engineering and Manufacturing Development contract.
During the quarter, Defense, Space & Security completed the
U.S. Air Force first flight of the T-7A Red
Hawk, began construction on the Advanced Coatings Center in
St. Louis and captured an award
from the U.S. Army for 19 CH-47 Chinooks. Backlog at Defense, Space
& Security was $58 billion, of
which 31 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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2023
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2022
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Change
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2023
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2022
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Change
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Revenues
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$4,746
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$4,298
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10 %
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$9,466
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$8,612
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10 %
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Earnings from
operations
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$856
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$728
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18 %
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$1,703
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$1,360
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25 %
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Operating
margins
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18.0
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%
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16.9
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%
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1.1
pts
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18.0
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%
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15.8
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%
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2.2
pts
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Global Services second quarter revenue of $4.7 billion and operating margin of 18.0 percent
reflect higher commercial volume and favorable mix.
During the quarter, Global Services announced expansion in
Poland with a new parts
distribution site, collaboration with CAE to enhance and expand
training solutions and Japan Airlines adopted Boeing Insight
Accelerator for its 787 fleet.
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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2023
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2022
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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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($2)
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($66)
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($44)
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($66)
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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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$284
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$582
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$567
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Other unallocated items
and eliminations
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($336)
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($84)
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($796)
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($335)
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Other income,
net
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$320
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$253
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$622
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$434
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Interest and debt
expense
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($621)
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($656)
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($1,270)
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($1,293)
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Effective tax
rate
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62.8
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%
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57.6
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%
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35.9
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%
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12.8
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%
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The increase in loss from Other unallocated items
and eliminations was primarily driven by deferred compensation
expense. Other income primarily reflects an increase in investment
income due to higher interest rates. The second quarter effective
tax rate primarily reflects the tax benefit on pre-tax losses
including cumulative adjustments related to a projected increase in
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/(loss), Core Operating Margin and Core
Earnings/(loss) Per Share
Core operating earnings/(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 earnings/(loss)
expressed as a percentage of revenue. Core earnings/(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 earnings/(loss), core
operating margin and core earnings/(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 12 and 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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|
Six months ended
June 30
|
|
Three months
ended
June 30
|
(Dollars in
millions, except per share data)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Sales of
products
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$31,601
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|
|
$25,436
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|
|
$16,687
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|
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$14,009
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Sales of
services
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6,071
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|
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5,236
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|
|
3,064
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|
2,672
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Total
revenues
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37,672
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|
|
30,672
|
|
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19,751
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|
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16,681
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|
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Cost of
products
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(28,676)
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|
(23,696)
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|
|
(15,123)
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|
|
(12,284)
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Cost of
services
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(5,134)
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|
|
(4,495)
|
|
|
(2,689)
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|
|
(2,269)
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Total costs and
expenses
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(33,810)
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|
|
(28,191)
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|
|
(17,812)
|
|
|
(14,553)
|
|
|
3,862
|
|
|
2,481
|
|
|
1,939
|
|
|
2,128
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|
Income/(loss) from
operating investments, net
|
17
|
|
|
(3)
|
|
|
44
|
|
|
17
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|
General and
administrative expense
|
(2,590)
|
|
|
(1,531)
|
|
|
(1,286)
|
|
|
(668)
|
|
Research and
development expense, net
|
(1,538)
|
|
|
(1,331)
|
|
|
(797)
|
|
|
(698)
|
|
Gain on dispositions,
net
|
1
|
|
|
2
|
|
|
1
|
|
|
1
|
|
(Loss)/earnings from
operations
|
(248)
|
|
|
(382)
|
|
|
(99)
|
|
|
780
|
|
Other income,
net
|
622
|
|
|
434
|
|
|
320
|
|
|
253
|
|
Interest and debt
expense
|
(1,270)
|
|
|
(1,293)
|
|
|
(621)
|
|
|
(656)
|
|
(Loss)/earnings
before income taxes
|
(896)
|
|
|
(1,241)
|
|
|
(400)
|
|
|
377
|
|
Income tax
benefit/(expense)
|
322
|
|
|
159
|
|
|
251
|
|
|
(217)
|
|
Net
(loss)/earnings
|
(574)
|
|
|
(1,082)
|
|
|
(149)
|
|
|
160
|
|
Less: net loss
attributable to noncontrolling interest
|
(11)
|
|
|
(56)
|
|
|
|
|
|
(33)
|
|
Net (loss)/earnings
attributable to Boeing Shareholders
|
($563)
|
|
|
($1,026)
|
|
|
($149)
|
|
|
$193
|
|
|
|
|
|
|
|
|
|
Basic
(loss)/earnings per share
|
($0.93)
|
|
|
($1.73)
|
|
|
($0.25)
|
|
|
$0.32
|
|
|
|
|
|
|
|
|
|
Diluted
(loss)/earnings per share
|
($0.93)
|
|
|
($1.73)
|
|
|
($0.25)
|
|
|
$0.32
|
|
|
|
|
|
|
|
|
|
Weighted average
diluted shares (millions)
|
603.9
|
|
592.8
|
|
605.5
|
|
596.4
|
The Boeing Company
and Subsidiaries
Consolidated
Statements of Financial Position
(Unaudited)
|
|
(Dollars in
millions, except per share data)
|
June 30
2023
|
|
December 31
2022
|
Assets
|
|
|
|
Cash and cash
equivalents
|
$7,254
|
|
|
$14,614
|
|
Short-term and other
investments
|
6,508
|
|
|
2,606
|
|
Accounts receivable,
net
|
2,945
|
|
|
2,517
|
|
Unbilled receivables,
net
|
9,357
|
|
|
8,634
|
|
Current portion of
customer financing, net
|
85
|
|
|
154
|
|
Inventories
|
78,322
|
|
|
78,151
|
|
Other current assets,
net
|
2,941
|
|
|
2,847
|
|
Total current
assets
|
107,412
|
|
|
109,523
|
|
Customer financing,
net
|
1,105
|
|
|
1,450
|
|
Property, plant and
equipment, net of accumulated depreciation of $21,895
and $21,442
|
10,455
|
|
|
10,550
|
|
Goodwill
|
8,061
|
|
|
8,057
|
|
Acquired intangible
assets, net
|
2,194
|
|
|
2,311
|
|
Deferred income
taxes
|
66
|
|
|
63
|
|
Investments
|
1,025
|
|
|
983
|
|
Other assets, net of
accumulated amortization of of $935 and $949
|
4,456
|
|
|
4,163
|
|
Total
assets
|
$134,774
|
|
|
$137,100
|
|
Liabilities and
equity
|
|
|
|
Accounts
payable
|
$10,936
|
|
|
$10,200
|
|
Accrued
liabilities
|
21,221
|
|
|
21,581
|
|
Advances and progress
billings
|
55,310
|
|
|
53,081
|
|
Short-term debt and
current portion of long-term debt
|
4,609
|
|
|
5,190
|
|
Total current
liabilities
|
92,076
|
|
|
90,052
|
|
Deferred income
taxes
|
95
|
|
|
230
|
|
Accrued retiree health
care
|
2,424
|
|
|
2,503
|
|
Accrued pension plan
liability, net
|
5,855
|
|
|
6,141
|
|
Other long-term
liabilities
|
2,158
|
|
|
2,211
|
|
Long-term
debt
|
47,659
|
|
|
51,811
|
|
Total
liabilities
|
150,267
|
|
|
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
|
10,310
|
|
|
9,947
|
|
Treasury stock, at cost - 409,375,415 and 414,671,383
shares
|
(50,181)
|
|
|
(50,814)
|
|
Retained
earnings
|
28,910
|
|
|
29,473
|
|
Accumulated other
comprehensive loss
|
(9,617)
|
|
|
(9,550)
|
|
Total shareholders'
deficit
|
(15,517)
|
|
|
(15,883)
|
|
Noncontrolling
interests
|
24
|
|
|
35
|
|
Total
equity
|
(15,493)
|
|
|
(15,848)
|
|
Total liabilities
and equity
|
$134,774
|
|
|
$137,100
|
|
The Boeing Company
and Subsidiaries
Consolidated
Statements of Cash Flows
(Unaudited)
|
|
|
Six months ended
June 30
|
(Dollars in
millions)
|
2023
|
|
2022
|
Cash
flows – operating activities:
|
|
|
|
Net loss
|
($574)
|
|
|
($1,082)
|
|
Adjustments to
reconcile net loss to net cash provided/(used) by operating
activities:
|
|
|
|
Non-cash items
–
|
|
|
|
Share-based plans
expense
|
381
|
|
|
352
|
|
Treasury shares issued
for 401(k) contribution
|
862
|
|
|
612
|
|
Depreciation and
amortization
|
913
|
|
|
984
|
|
Investment/asset
impairment charges, net
|
12
|
|
|
72
|
|
Customer financing
valuation adjustments
|
(3)
|
|
|
42
|
|
Gain on dispositions,
net
|
(1)
|
|
|
(2)
|
|
Other charges and
credits, net
|
33
|
|
|
260
|
|
Changes in assets and
liabilities –
|
|
|
|
Accounts
receivable
|
(433)
|
|
|
(350)
|
|
Unbilled
receivables
|
(721)
|
|
|
(758)
|
|
Advances and progress
billings
|
2,228
|
|
|
(907)
|
|
Inventories
|
(241)
|
|
|
(1,260)
|
|
Other current
assets
|
313
|
|
|
144
|
|
Accounts
payable
|
852
|
|
|
395
|
|
Accrued
liabilities
|
(399)
|
|
|
(835)
|
|
Income taxes
receivable, payable and deferred
|
(424)
|
|
|
(238)
|
|
Other long-term
liabilities
|
(180)
|
|
|
(64)
|
|
Pension and other
postretirement plans
|
(520)
|
|
|
(695)
|
|
Customer financing,
net
|
419
|
|
|
50
|
|
Other
|
40
|
|
|
145
|
|
Net cash
provided/(used) by operating activities
|
2,557
|
|
|
(3,135)
|
|
Cash flows –
investing activities:
|
|
|
|
Payments to acquire
property, plant and equipment
|
(764)
|
|
|
(612)
|
|
Proceeds from disposals
of property, plant and equipment
|
13
|
|
|
16
|
|
Contributions to
investments
|
(9,496)
|
|
|
(2,471)
|
|
Proceeds from
investments
|
5,567
|
|
|
9,296
|
|
Other
|
(158)
|
|
|
2
|
|
Net cash
(used)/provided by investing activities
|
(4,838)
|
|
|
6,231
|
|
Cash flows –
financing activities:
|
|
|
|
New
borrowings
|
38
|
|
|
15
|
|
Debt
repayments
|
(5,123)
|
|
|
(1,013)
|
|
Stock options
exercised
|
44
|
|
|
34
|
|
Employee taxes on
certain share-based payment arrangements
|
(48)
|
|
|
(34)
|
|
Other
|
(4)
|
|
|
|
Net cash used by
financing activities
|
(5,093)
|
|
|
(998)
|
|
Effect of exchange rate
changes on cash and cash equivalents
|
2
|
|
|
(71)
|
|
Net
(decrease)/increase in cash & cash equivalents, including
restricted
|
(7,372)
|
|
|
2,027
|
|
Cash & cash
equivalents, including restricted, at beginning of year
|
14,647
|
|
|
8,104
|
|
Cash & cash
equivalents, including restricted, at end of period
|
7,275
|
|
|
10,131
|
|
Less restricted cash
& cash equivalents, included in Investments
|
21
|
|
|
41
|
|
Cash & cash
equivalents at end of period
|
$7,254
|
|
|
$10,090
|
|
The Boeing Company
and Subsidiaries
Summary of Business
Segment Data
(Unaudited)
|
|
|
Six months ended
June 30
|
|
Three months
ended
June 30
|
(Dollars in
millions)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenues:
|
|
|
|
|
|
|
|
Commercial
Airplanes
|
$15,544
|
|
|
$10,452
|
|
|
$8,840
|
|
|
$6,258
|
|
Defense, Space &
Security
|
12,706
|
|
|
11,674
|
|
|
6,167
|
|
|
6,191
|
|
Global
Services
|
9,466
|
|
|
8,612
|
|
|
4,746
|
|
|
4,298
|
|
Unallocated items,
eliminations and other
|
(44)
|
|
|
(66)
|
|
|
(2)
|
|
|
(66)
|
|
Total
revenues
|
$37,672
|
|
|
$30,672
|
|
|
$19,751
|
|
|
$16,681
|
|
(Loss)/earnings from
operations:
|
|
|
|
|
|
|
|
Commercial
Airplanes
|
($998)
|
|
|
($1,116)
|
|
|
($383)
|
|
|
($219)
|
|
Defense, Space &
Security
|
(739)
|
|
|
(858)
|
|
|
(527)
|
|
|
71
|
|
Global
Services
|
1,703
|
|
|
1,360
|
|
|
856
|
|
|
728
|
|
Segment operating
earnings/(loss)
|
(34)
|
|
|
(614)
|
|
|
(54)
|
|
|
580
|
|
Unallocated items,
eliminations and other
|
(796)
|
|
|
(335)
|
|
|
(336)
|
|
|
(84)
|
|
FAS/CAS service cost
adjustment
|
582
|
|
|
567
|
|
|
291
|
|
|
284
|
|
(Loss)/earnings from
operations
|
(248)
|
|
|
(382)
|
|
|
(99)
|
|
|
780
|
|
Other income,
net
|
622
|
|
|
434
|
|
|
320
|
|
|
253
|
|
Interest and debt
expense
|
(1,270)
|
|
|
(1,293)
|
|
|
(621)
|
|
|
(656)
|
|
(Loss)/earnings
before income taxes
|
(896)
|
|
|
(1,241)
|
|
|
(400)
|
|
|
377
|
|
Income tax
benefit/(expense)
|
322
|
|
|
159
|
|
|
251
|
|
|
(217)
|
|
Net
(loss)/earnings
|
(574)
|
|
|
(1,082)
|
|
|
(149)
|
|
|
160
|
|
Less: net loss
attributable to noncontrolling interest
|
(11)
|
|
|
(56)
|
|
|
|
|
|
(33)
|
|
Net (loss)/earnings
attributable to Boeing Shareholders
|
($563)
|
|
|
($1,026)
|
|
|
($149)
|
|
|
$193
|
|
Research and
development expense, net:
|
|
|
|
|
|
|
|
Commercial
Airplanes
|
$915
|
|
|
$693
|
|
|
$471
|
|
|
$372
|
|
Defense, Space &
Security
|
420
|
|
|
466
|
|
|
225
|
|
|
233
|
|
Global
Services
|
54
|
|
|
54
|
|
|
28
|
|
|
27
|
|
Other
|
149
|
|
|
118
|
|
|
73
|
|
|
66
|
|
Total research and
development expense, net
|
$1,538
|
|
|
$1,331
|
|
|
$797
|
|
|
$698
|
|
Unallocated items,
eliminations and other:
|
|
|
|
|
|
|
|
Share-based
plans
|
($38)
|
|
|
($108)
|
|
|
$14
|
|
|
($25)
|
|
Deferred
compensation
|
(96)
|
|
|
166
|
|
|
(42)
|
|
|
124
|
|
Amortization of
previously capitalized interest
|
(47)
|
|
|
(47)
|
|
|
(24)
|
|
|
(24)
|
|
Research and
development expense, net
|
(149)
|
|
|
(118)
|
|
|
(73)
|
|
|
(66)
|
|
Eliminations and other
unallocated items
|
(466)
|
|
|
(228)
|
|
|
(211)
|
|
|
(93)
|
|
Sub-total (included
in core operating (loss)/earnings
|
(796)
|
|
|
(335)
|
|
|
(336)
|
|
|
(84)
|
|
Pension FAS/CAS service
cost adjustment
|
445
|
|
|
413
|
|
|
222
|
|
|
205
|
|
Postretirement FAS/CAS
service cost adjustment
|
137
|
|
|
154
|
|
|
69
|
|
|
79
|
|
FAS/CAS service cost
adjustment
|
582
|
|
|
567
|
|
|
$291
|
|
|
$284
|
|
Total
|
($214)
|
|
|
$232
|
|
|
($45)
|
|
|
$200
|
|
The Boeing Company
and Subsidiaries
Operating and
Financial Data
(Unaudited)
|
|
Deliveries
|
|
Six months ended
June 30
|
|
Three months
ended
June 30
|
|
Commercial
Airplanes
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
737
|
|
216
|
|
|
189
|
|
|
103
|
|
|
103
|
|
|
747
|
|
1
|
|
|
3
|
|
|
—
|
|
|
2
|
|
|
767
|
|
9
|
|
|
12
|
|
|
8
|
|
|
7
|
|
|
777
|
|
9
|
|
|
12
|
|
|
5
|
|
|
9
|
|
|
787
|
|
31
|
|
|
—
|
|
|
20
|
|
|
—
|
|
|
Total
|
|
266
|
|
|
216
|
|
|
136
|
|
|
121
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Defense, Space &
Security
|
|
|
|
|
|
|
|
|
|
AH-64 Apache
(New)
|
|
12
|
|
|
13
|
|
|
5
|
|
|
6
|
|
AH-64 Apache
(Remanufactured)
|
|
29
|
|
|
28
|
|
|
16
|
|
|
13
|
|
CH-47 Chinook
(New)
|
|
7
|
|
|
9
|
|
|
2
|
|
|
5
|
|
CH-47 Chinook
(Renewed)
|
|
4
|
|
|
4
|
|
|
3
|
|
|
1
|
|
F-15 Models
|
|
6
|
|
|
5
|
|
|
4
|
|
|
4
|
|
F/A-18
Models
|
|
13
|
|
|
8
|
|
|
6
|
|
|
4
|
|
KC-46 Tanker
|
|
1
|
|
|
8
|
|
|
—
|
|
|
4
|
|
P-8 Models
|
|
5
|
|
|
6
|
|
|
2
|
|
|
3
|
|
Commercial and Civil
Satellites
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total backlog
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30
2023
|
|
December 31
2022
|
Commercial
Airplanes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$362,866
|
|
|
$329,824
|
|
Defense, Space &
Security
|
|
|
|
|
|
|
|
|
|
|
|
|
|
57,505
|
|
|
54,373
|
|
Global
Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18,455
|
|
|
19,338
|
|
Unallocated items,
eliminations and other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
738
|
|
|
846
|
|
Total
backlog
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$439,564
|
|
|
$404,381
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contractual
backlog
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$417,037
|
|
|
$381,977
|
|
Unobligated
backlog
|
|
|
|
|
|
|
|
|
|
|
|
|
|
22,527
|
|
|
22,404
|
|
Total
backlog
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$439,564
|
|
|
$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)/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 5 of this
release for additional information on the use of these non-GAAP
financial measures.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
millions, except per share data)
|
|
|
|
Second Quarter
2023
|
|
Second Quarter
2022
|
|
|
|
|
$
millions
|
Per
Share
|
|
$ millions
|
Per Share
|
Revenues
|
|
|
|
19,751
|
|
|
|
16,681
|
|
|
(Loss)/earnings from
operations (GAAP)
|
|
|
|
(99)
|
|
|
|
780
|
|
|
Operating margin
(GAAP)
|
|
|
|
(0.5)
|
%
|
|
|
4.7
|
%
|
|
|
|
|
|
|
|
|
|
|
FAS/CAS service cost
adjustment:
|
|
|
|
|
|
|
|
|
Pension FAS/CAS service
cost adjustment
|
|
|
|
(222)
|
|
|
|
(205)
|
|
|
Postretirement FAS/CAS
service cost adjustment
|
|
|
|
(69)
|
|
|
|
(79)
|
|
|
FAS/CAS service cost
adjustment
|
|
|
|
(291)
|
|
|
|
(284)
|
|
|
Core operating
(loss)/earnings (non-GAAP)
|
|
|
|
($390)
|
|
|
|
$496
|
|
|
Core operating
margin (non-GAAP)
|
|
|
|
(2.0)
|
%
|
|
|
3.0
|
%
|
|
|
|
|
|
|
|
|
|
|
Diluted
(loss)/earnings per share (GAAP)
|
|
|
|
|
($0.25)
|
|
|
|
$0.32
|
|
Pension FAS/CAS service
cost adjustment
|
|
|
|
($222)
|
|
(0.37)
|
|
|
($205)
|
|
(0.35)
|
|
Postretirement FAS/CAS
service cost adjustment
|
|
|
|
|
(69)
|
|
(0.11)
|
|
|
|
(79)
|
|
(0.13)
|
|
Non-operating pension
expense
|
|
|
|
(134)
|
|
(0.22)
|
|
|
(221)
|
|
(0.37)
|
|
Non-operating
postretirement expense
|
|
|
|
|
(14)
|
|
(0.02)
|
|
|
|
(14)
|
|
(0.02)
|
|
Provision for deferred
income taxes on adjustments 1
|
|
|
|
92
|
|
0.15
|
|
|
109
|
|
0.18
|
|
Subtotal of
adjustments
|
|
|
|
($347)
|
|
($0.57)
|
|
|
($410)
|
|
($0.69)
|
|
Core loss per share
(non-GAAP)
|
|
|
|
|
($0.82)
|
|
|
|
($0.37)
|
|
|
|
|
|
|
|
|
|
|
Weighted average
diluted shares (in millions)
|
|
|
|
|
605.5
|
|
|
|
596.4
|
|
|
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, 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 Half
2023
|
|
First Half
2022
|
|
|
|
|
$
millions
|
Per
Share
|
|
$ millions
|
Per Share
|
Revenues
|
|
|
|
37,672
|
|
|
|
30,672
|
|
|
Loss from operations
(GAAP)
|
|
|
|
(248)
|
|
|
|
(382)
|
|
|
Operating margin
(GAAP)
|
|
|
|
(0.7)
|
%
|
|
|
(1.2)
|
%
|
|
|
|
|
|
|
|
|
|
|
FAS/CAS service cost
adjustment:
|
|
|
|
|
|
|
|
|
Pension FAS/CAS service
cost adjustment
|
|
|
|
(445)
|
|
|
|
(413)
|
|
|
Postretirement FAS/CAS
service cost adjustment
|
|
|
|
(137)
|
|
|
|
(154)
|
|
|
FAS/CAS service cost
adjustment
|
|
|
|
(582)
|
|
|
|
(567)
|
|
|
Core operating loss
(non-GAAP)
|
|
|
|
(830)
|
|
|
|
(949)
|
|
|
Core operating
margin (non-GAAP)
|
|
|
|
(2.2)
|
%
|
|
|
(3.1)
|
%
|
|
|
|
|
|
|
|
|
|
|
Diluted loss per
share (GAAP)
|
|
|
|
|
(0.93)
|
|
|
|
(1.73)
|
|
Pension FAS/CAS service
cost adjustment
|
|
|
|
(445)
|
|
(0.73)
|
|
|
(413)
|
|
(0.70)
|
|
Postretirement FAS/CAS
service cost adjustment
|
|
|
|
|
(137)
|
|
(0.23)
|
|
|
|
(154)
|
|
(0.26)
|
|
Non-operating pension
expense
|
|
|
|
(268)
|
|
(0.45)
|
|
|
(441)
|
|
(0.74)
|
|
Non-operating
postretirement expense
|
|
|
|
|
(29)
|
|
(0.05)
|
|
|
|
(29)
|
|
(0.05)
|
|
Provision for deferred
income taxes on adjustments 1
|
|
|
|
185
|
|
0.31
|
|
|
218
|
|
0.37
|
|
Subtotal of
adjustments
|
|
|
|
($694)
|
|
($1.15)
|
|
|
($819)
|
|
($1.38)
|
|
Core loss per share
(non-GAAP)
|
|
|
|
|
($2.08)
|
|
|
|
($3.11)
|
|
|
|
|
|
|
|
|
|
|
Weighted average
diluted shares (in millions)
|
|
|
|
|
603.9
|
|
|
|
592.8
|
|
|
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-second-quarter-results-301886215.html
SOURCE Boeing