ARLINGTON, Va., Oct. 25,
2023 /PRNewswire/ --
Third Quarter 2023
- Reaffirm guidance: $4.5-$6.5 billion
of operating cash flow and $3.0-$5.0 billion
of free cash flow (non-GAAP)
- Still expect to deliver 70-80 787 and now expect to deliver
375-400 737 airplanes
- Now transitioning 787 to five per month; plan to complete
737 production transition to 38 per month by year-end
- Revenue of $18.1 billion
reflecting 105 commercial deliveries
- Total company backlog of $469
billion, including over 5,100 commercial airplanes
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Table 1. Summary
Financial Results
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Third
Quarter
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Nine
Months
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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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$18,104
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$15,956
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13 %
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$55,776
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$46,628
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20 %
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GAAP
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Loss from
operations
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($808)
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($2,792)
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NM
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($1,056)
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($3,174)
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NM
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Operating
margins
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(4.5)
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%
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(17.5)
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%
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NM
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(1.9)
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%
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(6.8)
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%
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NM
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Net
loss
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($1,638)
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($3,308)
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NM
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($2,212)
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($4,390)
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NM
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Loss per
share
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($2.70)
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($5.49)
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NM
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($3.64)
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($7.24)
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NM
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Operating cash
flow
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$22
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$3,190
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NM
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$2,579
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$55
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NM
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Non-GAAP*
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Core operating
loss
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($1,089)
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($3,071)
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NM
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($1,919)
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($4,020)
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NM
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Core operating
margins
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(6.0)
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%
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(19.2)
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%
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NM
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(3.4)
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%
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(8.6)
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%
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NM
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Core loss per
share
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($3.26)
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($6.18)
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NM
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($5.35)
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($9.31)
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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 third quarter revenue of
$18.1 billion, GAAP loss per
share of ($2.70) and core loss per
share (non-GAAP)* of ($3.26) (Table
1). Third quarter results were impacted by unfavorable defense
performance and lower 737 deliveries. Boeing reported operating
cash flow of $0.0 billion and
free cash flow of ($0.3) billion
(non-GAAP).
"We continue to progress in our recovery and despite near-term
challenges, we remain on track to meet the financial goals we set
for this year and for the long term," said Dave Calhoun,
Boeing president and chief executive officer. "We are focused on
driving stability in our supply chain and improving operational
performance as we steadily increase production rates to meet strong
demand. The important work we're doing to add rigor around our
quality systems and build a culture of transparently bringing
forward any issue, no matter the size, can bring short-term
challenges – but it is how we set ourselves on the right course for
our long-term future. Leading with safety, quality and
transparency, we will continue to restore our operational and
financial strength."
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Table 2. Cash
Flow
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Third
Quarter
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Nine
Months
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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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$22
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$3,190
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$2,579
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$55
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Less additions to
property, plant & equipment
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($332)
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($284)
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($1,096)
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($896)
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Free cash
flow*
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($310)
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$2,906
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$1,483
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($841)
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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 $0.0
billion in the quarter reflecting less favorable receipt
timing, including the absence of a prior year tax refund (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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Q3 23
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Q2 23
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Cash
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$6.8
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$7.3
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Marketable
securities1
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$6.6
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$6.5
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Total
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$13.4
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$13.8
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Consolidated
debt
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$52.3
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$52.3
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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
$13.4 billion, compared to
$13.8 billion at the beginning
of the quarter (Table 3). The company has access to credit
facilities of $10.0 billion, which
remain undrawn.
Total company backlog at quarter end was $469 billion.
Segment Results
Commercial Airplanes
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Table 4. Commercial
Airplanes
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Third
Quarter
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Nine
Months
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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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105
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112
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(6) %
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371
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328
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13 %
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Revenues
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$7,876
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$6,303
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25 %
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$23,420
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$16,755
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40 %
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Loss from
operations
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($678)
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($622)
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NM
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($1,676)
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($1,738)
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NM
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Operating
margins
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(8.6)
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%
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(9.9)
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%
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NM
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(7.2)
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%
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(10.4)
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%
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NM
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Commercial Airplanes third quarter revenue increased to
$7.9 billion driven by higher
787 deliveries (Table 4). Operating margin of (8.6) percent also
reflects lower 737 deliveries as well as abnormal costs and period
expenses, including research and development.
On the 737 program, during the quarter a supplier
non-conformance was identified on the aft pressure bulkhead section
of certain 737 airplanes. This is not an immediate safety of flight
issue and the in-service fleet can continue operating safely.
Near-term deliveries and production will be impacted as the program
performs necessary inspections and rework, and the company now
expects to deliver 375-400 airplanes this year. On production,
suppliers are continuing with planned rate increases, and the
company expects to complete the final assembly transition to 38 per
month by year-end, with plans to increase to 50 per month in the
2025/2026 timeframe. The estimated cost associated with performing
the rework is immaterial and included in third quarter results.
The 787 program is now transitioning production to five per
month and plans to increase to 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 398 net orders,
including 150 737 MAX 10 airplanes for Ryanair, 50 787 airplanes
for United Airlines, and 39 787 airplanes for Saudi Arabian
Airlines. Commercial Airplanes delivered 105 airplanes during the
quarter and backlog included over 5,100 airplanes valued at
$392 billion.
Defense, Space & Security
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Table 5. Defense,
Space & Security
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Third
Quarter
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Nine
Months
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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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$5,481
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$5,307
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3 %
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$18,187
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$16,981
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7 %
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Loss from
operations
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($924)
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($2,798)
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NM
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($1,663)
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($3,656)
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NM
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Operating
margins
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(16.9)
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%
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(52.7)
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%
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NM
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(9.1)
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%
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(21.5)
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%
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NM
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Defense, Space & Security third quarter revenue was
$5.5 billion. Third quarter operating
margin was (16.9) percent, due to a $482
million loss on the VC-25B program driven by higher
estimated manufacturing cost related to engineering changes and
labor instability, as well as resolution of supplier negotiations.
Results were also impacted by $315
million of losses on a satellite contract due to estimated
customer considerations and increased costs to enhance the
constellation and meet lifecycle commitments.
During the quarter, Defense, Space & Security delivered the
first T-7A Red Hawk to the U.S. Air
Force and captured an award from the U.S. Army for 21 AH-64E
Apaches. Backlog at Defense, Space & Security was $58 billion, of which 29 percent represents
orders from customers outside the U.S.
Global Services
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Table 6. Global
Services
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Third
Quarter
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Nine
Months
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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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$4,812
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$4,432
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9 %
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$14,278
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$13,044
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9 %
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Earnings from
operations
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$784
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$733
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7 %
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$2,487
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$2,093
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19 %
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Operating
margins
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16.3
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%
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16.5
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%
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-0.2
pts
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17.4
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%
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16.0
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%
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1.4
pts
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Global Services third quarter revenue of $4.8 billion and operating margin of 16.3 percent
reflect higher commercial volume and mix.
During the quarter, Global Services delivered the 150th 737-800
Boeing Converted Freighter, received an order from the U.S. Navy
for P-8 trainer upgrades and signed a digital maintenance solution
agreement with Philippine Airlines for Airplane Health
Management.
Additional Financial Information
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Table 7. Additional
Financial Information
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Third
Quarter
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Nine
Months
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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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($65)
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($86)
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($109)
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($152)
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Earnings/(loss) from
operations
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FAS/CAS service cost
adjustment
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$281
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$279
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$863
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$846
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Other unallocated items
and eliminations
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($271)
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($384)
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($1,067)
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($719)
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Other income,
net
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$297
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$288
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$919
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$722
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Interest and debt
expense
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($589)
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($628)
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($1,859)
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($1,921)
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Effective tax
rate
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(48.9)
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%
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(5.6)
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%
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(10.8)
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%
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(0.4)
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%
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Other unallocated items and eliminations primarily reflects
timing of allocations. The third quarter effective tax rate
primarily reflects additional tax expense to adjust prior quarters'
results to the current estimate of the annual effective tax
rate.
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 Loss 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 loss per share excluding the net loss 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 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:
|
|
Matt Welch or David
Dufault (312) 544-2140
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Communications:
|
|
Michael Friedman
media@boeing.com
|
The Boeing Company
and Subsidiaries
Consolidated
Statements of Operations
(Unaudited)
|
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Nine months
ended
September 30
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Three months
ended
September 30
|
(Dollars in
millions, except per share data)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Sales of
products
|
$46,661
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|
|
$38,767
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|
|
$15,060
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|
|
$13,331
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|
Sales of
services
|
9,115
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|
|
7,861
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|
|
3,044
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|
|
2,625
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|
Total
revenues
|
55,776
|
|
|
46,628
|
|
|
18,104
|
|
|
15,956
|
|
|
|
|
|
|
|
|
|
Cost of
products
|
(43,140)
|
|
|
(38,237)
|
|
|
(14,464)
|
|
|
(14,541)
|
|
Cost of
services
|
(7,609)
|
|
|
(6,725)
|
|
|
(2,475)
|
|
|
(2,230)
|
|
Total costs and
expenses
|
(50,749)
|
|
|
(44,962)
|
|
|
(16,939)
|
|
|
(16,771)
|
|
|
5,027
|
|
|
1,666
|
|
|
1,165
|
|
|
(815)
|
|
Income/(loss) from
operating investments, net
|
45
|
|
|
(27)
|
|
|
28
|
|
|
(24)
|
|
General and
administrative expense
|
(3,633)
|
|
|
(2,757)
|
|
|
(1,043)
|
|
|
(1,226)
|
|
Research and
development expense, net
|
(2,496)
|
|
|
(2,058)
|
|
|
(958)
|
|
|
(727)
|
|
Gain on dispositions,
net
|
1
|
|
|
2
|
|
|
|
|
|
Loss from
operations
|
(1,056)
|
|
|
(3,174)
|
|
|
(808)
|
|
|
(2,792)
|
|
Other income,
net
|
919
|
|
|
722
|
|
|
297
|
|
|
288
|
|
Interest and debt
expense
|
(1,859)
|
|
|
(1,921)
|
|
|
(589)
|
|
|
(628)
|
|
Loss before income
taxes
|
(1,996)
|
|
|
(4,373)
|
|
|
(1,100)
|
|
|
(3,132)
|
|
Income tax
expense
|
(216)
|
|
|
(17)
|
|
|
(538)
|
|
|
(176)
|
|
Net
loss
|
(2,212)
|
|
|
(4,390)
|
|
|
(1,638)
|
|
|
(3,308)
|
|
Less: net loss
attributable to noncontrolling interest
|
(13)
|
|
|
(89)
|
|
|
(2)
|
|
|
(33)
|
|
Net loss
attributable to Boeing Shareholders
|
($2,199)
|
|
|
($4,301)
|
|
|
($1,636)
|
|
|
($3,275)
|
|
|
|
|
|
|
|
|
|
Basic loss per
share
|
($3.64)
|
|
|
($7.24)
|
|
|
($2.70)
|
|
|
($5.49)
|
|
|
|
|
|
|
|
|
|
Diluted loss per
share
|
($3.64)
|
|
|
($7.24)
|
|
|
($2.70)
|
|
|
($5.49)
|
|
|
|
|
|
|
|
|
|
Weighted average
diluted shares (millions)
|
605.0
|
|
594.0
|
|
607.2
|
|
596.3
|
The Boeing Company
and Subsidiaries
Consolidated
Statements of Financial Position
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
millions, except per share data)
|
September 30
2023
|
|
December 31
2022
|
Assets
|
|
|
|
Cash and cash
equivalents
|
$6,811
|
|
|
$14,614
|
|
Short-term and other
investments
|
6,561
|
|
|
2,606
|
|
Accounts receivable,
net
|
3,032
|
|
|
2,517
|
|
Unbilled receivables,
net
|
9,184
|
|
|
8,634
|
|
Current portion of
customer financing, net
|
88
|
|
|
154
|
|
Inventories
|
78,972
|
|
|
78,151
|
|
Other current assets,
net
|
2,287
|
|
|
2,847
|
|
Total current
assets
|
106,935
|
|
|
109,523
|
|
Customer financing,
net
|
963
|
|
|
1,450
|
|
Property, plant and
equipment, net of accumulated depreciation of $22,085
and $21,442
|
10,484
|
|
|
10,550
|
|
Goodwill
|
8,069
|
|
|
8,057
|
|
Acquired intangible
assets, net
|
2,143
|
|
|
2,311
|
|
Deferred income
taxes
|
64
|
|
|
63
|
|
Investments
|
1,061
|
|
|
983
|
|
Other assets, net of
accumulated amortization of of $993 and $949
|
4,562
|
|
|
4,163
|
|
Total
assets
|
$134,281
|
|
|
$137,100
|
|
Liabilities and
equity
|
|
|
|
Accounts
payable
|
$11,143
|
|
|
$10,200
|
|
Accrued
liabilities
|
21,104
|
|
|
21,581
|
|
Advances and progress
billings
|
55,924
|
|
|
53,081
|
|
Short-term debt and
current portion of long-term debt
|
4,891
|
|
|
5,190
|
|
Total current
liabilities
|
93,062
|
|
|
90,052
|
|
Deferred income
taxes
|
218
|
|
|
230
|
|
Accrued retiree health
care
|
2,385
|
|
|
2,503
|
|
Accrued pension plan
liability, net
|
5,713
|
|
|
6,141
|
|
Other long-term
liabilities
|
2,239
|
|
|
2,211
|
|
Long-term
debt
|
47,381
|
|
|
51,811
|
|
Total
liabilities
|
150,998
|
|
|
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
|
10,616
|
|
|
9,947
|
|
Treasury stock, at cost - 407,648,773 and 414,671,383
shares
|
(49,972)
|
|
|
(50,814)
|
|
Retained
earnings
|
27,274
|
|
|
29,473
|
|
Accumulated other
comprehensive loss
|
(9,708)
|
|
|
(9,550)
|
|
Total shareholders'
deficit
|
(16,729)
|
|
|
(15,883)
|
|
Noncontrolling
interests
|
12
|
|
|
35
|
|
Total
equity
|
(16,717)
|
|
|
(15,848)
|
|
Total liabilities
and equity
|
$134,281
|
|
|
$137,100
|
|
The Boeing Company
and Subsidiaries
Consolidated
Statements of Cash Flows
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months
ended
September 30
|
(Dollars in
millions)
|
2023
|
|
2022
|
Cash
flows – operating activities:
|
|
|
|
Net loss
|
($2,212)
|
|
|
($4,390)
|
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
Non-cash items
–
|
|
|
|
Share-based plans
expense
|
548
|
|
|
528
|
|
Treasury shares issued
for 401(k) contribution
|
1,204
|
|
|
928
|
|
Depreciation and
amortization
|
1,380
|
|
|
1,477
|
|
Investment/asset
impairment charges, net
|
12
|
|
|
78
|
|
Customer financing
valuation adjustments
|
(4)
|
|
|
39
|
|
Gain on dispositions,
net
|
(1)
|
|
|
(2)
|
|
Other charges and
credits, net
|
(21)
|
|
|
388
|
|
Changes in assets and
liabilities –
|
|
|
|
Accounts
receivable
|
(523)
|
|
|
(22)
|
|
Unbilled
receivables
|
(547)
|
|
|
(678)
|
|
Advances and progress
billings
|
2,963
|
|
|
204
|
|
Inventories
|
(940)
|
|
|
(1,164)
|
|
Other current
assets
|
707
|
|
|
(860)
|
|
Accounts
payable
|
982
|
|
|
590
|
|
Accrued
liabilities
|
(574)
|
|
|
2,416
|
|
Income taxes
receivable, payable and deferred
|
73
|
|
|
1,382
|
|
Other long-term
liabilities
|
(254)
|
|
|
(114)
|
|
Pension and other
postretirement plans
|
(785)
|
|
|
(1,053)
|
|
Customer financing,
net
|
472
|
|
|
76
|
|
Other
|
99
|
|
|
232
|
|
Net cash provided by
operating activities
|
2,579
|
|
|
55
|
|
Cash flows –
investing activities:
|
|
|
|
Payments to acquire
property, plant and equipment
|
(1,096)
|
|
|
(896)
|
|
Proceeds from disposals
of property, plant and equipment
|
19
|
|
|
19
|
|
Acquisitions, net of
cash acquired
|
(19)
|
|
|
|
Contributions to
investments
|
(14,485)
|
|
|
(2,773)
|
|
Proceeds from
investments
|
10,497
|
|
|
10,182
|
|
Other
|
(157)
|
|
|
(11)
|
|
Net cash
(used)/provided by investing activities
|
(5,241)
|
|
|
6,521
|
|
Cash flows –
financing activities:
|
|
|
|
New
borrowings
|
55
|
|
|
19
|
|
Debt
repayments
|
(5,181)
|
|
|
(1,038)
|
|
Stock options
exercised
|
45
|
|
|
39
|
|
Employee taxes on
certain share-based payment arrangements
|
(52)
|
|
|
(36)
|
|
Other
|
2
|
|
|
|
Net cash used by
financing activities
|
(5,131)
|
|
|
(1,016)
|
|
Effect of exchange rate
changes on cash and cash equivalents
|
(22)
|
|
|
(134)
|
|
Net
(decrease)/increase in cash & cash equivalents, including
restricted
|
(7,815)
|
|
|
5,426
|
|
Cash & cash
equivalents, including restricted, at beginning of year
|
14,647
|
|
|
8,104
|
|
Cash & cash
equivalents, including restricted, at end of period
|
6,832
|
|
|
13,530
|
|
Less restricted cash
& cash equivalents, included in Investments
|
21
|
|
|
36
|
|
Cash & cash
equivalents at end of period
|
$6,811
|
|
|
$13,494
|
|
The Boeing Company
and Subsidiaries
Summary of Business
Segment Data
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months
ended
September 30
|
|
Three months
ended
September 30
|
(Dollars in
millions)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenues:
|
|
|
|
|
|
|
|
Commercial
Airplanes
|
$23,420
|
|
|
$16,755
|
|
|
$7,876
|
|
|
$6,303
|
|
Defense, Space &
Security
|
18,187
|
|
|
16,981
|
|
|
5,481
|
|
|
5,307
|
|
Global
Services
|
14,278
|
|
|
13,044
|
|
|
4,812
|
|
|
4,432
|
|
Unallocated items,
eliminations and other
|
(109)
|
|
|
(152)
|
|
|
(65)
|
|
|
(86)
|
|
Total
revenues
|
$55,776
|
|
|
$46,628
|
|
|
$18,104
|
|
|
$15,956
|
|
Loss from
operations:
|
|
|
|
|
|
|
|
Commercial
Airplanes
|
($1,676)
|
|
|
($1,738)
|
|
|
($678)
|
|
|
($622)
|
|
Defense, Space &
Security
|
(1,663)
|
|
|
(3,656)
|
|
|
(924)
|
|
|
(2,798)
|
|
Global
Services
|
2,487
|
|
|
2,093
|
|
|
784
|
|
|
733
|
|
Segment operating
loss
|
(852)
|
|
|
(3,301)
|
|
|
(818)
|
|
|
(2,687)
|
|
Unallocated items,
eliminations and other
|
(1,067)
|
|
|
(719)
|
|
|
(271)
|
|
|
(384)
|
|
FAS/CAS service cost
adjustment
|
863
|
|
|
846
|
|
|
281
|
|
|
279
|
|
Loss from
operations
|
(1,056)
|
|
|
(3,174)
|
|
|
(808)
|
|
|
(2,792)
|
|
Other income,
net
|
919
|
|
|
722
|
|
|
297
|
|
|
288
|
|
Interest and debt
expense
|
(1,859)
|
|
|
(1,921)
|
|
|
(589)
|
|
|
(628)
|
|
Loss before income
taxes
|
(1,996)
|
|
|
(4,373)
|
|
|
(1,100)
|
|
|
(3,132)
|
|
Income tax
expense
|
(216)
|
|
|
(17)
|
|
|
(538)
|
|
|
(176)
|
|
Net
loss
|
(2,212)
|
|
|
(4,390)
|
|
|
(1,638)
|
|
|
(3,308)
|
|
Less: net loss
attributable to noncontrolling interest
|
(13)
|
|
|
(89)
|
|
|
(2)
|
|
|
(33)
|
|
Net loss
attributable to Boeing Shareholders
|
($2,199)
|
|
|
($4,301)
|
|
|
($1,636)
|
|
|
($3,275)
|
|
Research and
development expense, net:
|
|
|
|
|
|
|
|
Commercial
Airplanes
|
$1,538
|
|
|
$1,102
|
|
|
$623
|
|
|
$409
|
|
Defense, Space &
Security
|
652
|
|
|
706
|
|
|
232
|
|
|
240
|
|
Global
Services
|
84
|
|
|
89
|
|
|
30
|
|
|
35
|
|
Other
|
222
|
|
|
161
|
|
|
73
|
|
|
43
|
|
Total research and
development expense, net
|
$2,496
|
|
|
$2,058
|
|
|
$958
|
|
|
$727
|
|
Unallocated items,
eliminations and other:
|
|
|
|
|
|
|
|
Share-based
plans
|
($33)
|
|
|
($64)
|
|
|
$5
|
|
|
$44
|
|
Deferred
compensation
|
(71)
|
|
|
204
|
|
|
25
|
|
|
38
|
|
Amortization of
previously capitalized interest
|
(71)
|
|
|
(71)
|
|
|
(24)
|
|
|
(24)
|
|
Research and
development expense, net
|
(222)
|
|
|
(161)
|
|
|
(73)
|
|
|
(43)
|
|
Eliminations and other
unallocated items
|
(670)
|
|
|
(627)
|
|
|
(204)
|
|
|
(399)
|
|
Sub-total (included
in Core operating loss)
|
(1,067)
|
|
|
(719)
|
|
|
(271)
|
|
|
(384)
|
|
Pension FAS/CAS service
cost adjustment
|
663
|
|
|
621
|
|
|
218
|
|
|
208
|
|
Postretirement FAS/CAS
service cost adjustment
|
200
|
|
|
225
|
|
|
63
|
|
|
71
|
|
FAS/CAS service cost
adjustment
|
863
|
|
|
846
|
|
|
$281
|
|
|
$279
|
|
Total
|
($204)
|
|
|
$127
|
|
|
$10
|
|
|
($105)
|
|
The Boeing Company
and Subsidiaries
Operating and
Financial Data
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deliveries
|
|
Nine months
ended
September 30
|
|
Three months
ended
September 30
|
|
|
|
Commercial
Airplanes
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
737
|
|
286
|
|
|
277
|
|
|
70
|
|
|
88
|
|
|
|
|
747
|
|
1
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
|
|
767
|
|
17
|
|
|
21
|
|
|
8
|
|
|
9
|
|
|
|
|
777
|
|
17
|
|
|
18
|
|
|
8
|
|
|
6
|
|
|
|
|
787
|
|
50
|
|
|
9
|
|
|
19
|
|
|
9
|
|
|
|
|
Total
|
|
371
|
|
|
328
|
|
|
105
|
|
|
112
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Defense, Space &
Security
|
|
|
|
|
|
|
|
|
|
|
|
AH-64 Apache
(New)
|
|
17
|
|
|
20
|
|
|
5
|
|
|
7
|
|
|
|
AH-64 Apache
(Remanufactured)
|
|
38
|
|
|
36
|
|
|
9
|
|
|
8
|
|
|
|
CH-47 Chinook
(New)
|
|
8
|
|
|
10
|
|
|
1
|
|
|
1
|
|
|
|
CH-47 Chinook
(Renewed)
|
|
7
|
|
|
6
|
|
|
3
|
|
|
2
|
|
|
|
F-15 Models
|
|
6
|
|
|
9
|
|
|
—
|
|
|
4
|
|
|
|
F/A-18
Models
|
|
16
|
|
|
11
|
|
|
3
|
|
|
3
|
|
|
|
KC-46 Tanker
|
|
4
|
|
|
9
|
|
|
3
|
|
|
1
|
|
|
|
MH-139
|
|
1
|
|
|
4
|
|
|
1
|
|
|
4
|
|
|
|
P-8 Models
|
|
7
|
|
|
10
|
|
|
2
|
|
|
4
|
|
|
|
T-7A Red Hawk
|
|
1
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
|
Commercial Satellites
|
|
3
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total backlog (Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30
2023
|
|
December 31
2022
|
Commercial
Airplanes
|
|
|
|
|
|
|
|
|
|
|
|
|
$392,105
|
|
|
$329,824
|
Defense, Space &
Security
|
|
|
|
|
|
|
|
|
|
|
|
|
57,802
|
|
|
54,373
|
Global
Services
|
|
|
|
|
|
|
|
|
|
|
|
|
18,441
|
|
|
19,338
|
Unallocated items,
eliminations and other
|
|
|
|
|
|
|
|
|
|
|
|
|
830
|
|
|
846
|
Total backlog
|
|
|
|
|
|
|
|
|
|
|
|
|
$469,178
|
|
|
$404,381
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contractual
backlog
|
|
|
|
|
|
|
|
|
|
|
|
|
$446,199
|
|
|
$381,977
|
Unobligated
backlog
|
|
|
|
|
|
|
|
|
|
|
|
|
22,979
|
|
|
22,404
|
Total backlog
|
|
|
|
|
|
|
|
|
|
|
|
|
$469,178
|
|
|
$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)
|
|
Third Quarter
2023
|
|
Third Quarter
2022
|
|
|
$
millions
|
Per
Share
|
|
$ millions
|
Per Share
|
Revenues
|
|
18,104
|
|
|
|
15,956
|
|
|
Loss from operations
(GAAP)
|
|
(808)
|
|
|
|
(2,792)
|
|
|
Operating margin
(GAAP)
|
|
(4.5)
|
%
|
|
|
(17.5)
|
%
|
|
|
|
|
|
|
|
|
FAS/CAS service cost
adjustment:
|
|
|
|
|
|
|
Pension FAS/CAS service
cost adjustment
|
|
(218)
|
|
|
|
(208)
|
|
|
Postretirement FAS/CAS
service cost adjustment
|
|
(63)
|
|
|
|
(71)
|
|
|
FAS/CAS service cost
adjustment
|
|
(281)
|
|
|
|
(279)
|
|
|
Core operating loss
(non-GAAP)
|
|
($1,089)
|
|
|
|
($3,071)
|
|
|
Core operating
margin (non-GAAP)
|
|
(6.0)
|
%
|
|
|
(19.2)
|
%
|
|
|
|
|
|
|
|
|
Diluted loss per
share (GAAP)
|
|
|
($2.70)
|
|
|
|
($5.49)
|
|
Pension FAS/CAS service
cost adjustment
|
|
($218)
|
|
(0.36)
|
|
|
($208)
|
|
(0.35)
|
|
Postretirement FAS/CAS
service cost adjustment
|
|
|
(63)
|
|
(0.10)
|
|
|
|
(71)
|
|
(0.12)
|
|
Non-operating pension
expense
|
|
(134)
|
|
(0.23)
|
|
|
(225)
|
|
(0.37)
|
|
Non-operating
postretirement expense
|
|
|
(15)
|
|
(0.02)
|
|
|
|
(15)
|
|
(0.03)
|
|
Provision for deferred
income taxes on adjustments 1
|
|
90
|
|
0.15
|
|
|
109
|
|
0.18
|
|
Subtotal of
adjustments
|
|
($340)
|
|
($0.56)
|
|
|
($410)
|
|
($0.69)
|
|
Core loss per share
(non-GAAP)
|
|
|
($3.26)
|
|
|
|
($6.18)
|
|
|
|
|
|
|
|
|
Weighted average
diluted shares (in millions)
|
|
|
607.2
|
|
|
|
596.3
|
|
|
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)
|
|
Nine Months
2023
|
|
Nine Months
2022
|
|
|
$
millions
|
Per
Share
|
|
$ millions
|
Per Share
|
Revenues
|
|
55,776
|
|
|
|
46,628
|
|
|
Loss from operations
(GAAP)
|
|
(1,056)
|
|
|
|
(3,174)
|
|
|
Operating margin
(GAAP)
|
|
(1.9)
|
%
|
|
|
(6.8)
|
%
|
|
|
|
|
|
|
|
|
FAS/CAS service cost
adjustment:
|
|
|
|
|
|
|
Pension FAS/CAS service
cost adjustment
|
|
(663)
|
|
|
|
(621)
|
|
|
Postretirement FAS/CAS
service cost adjustment
|
|
(200)
|
|
|
|
(225)
|
|
|
FAS/CAS service cost
adjustment
|
|
(863)
|
|
|
|
(846)
|
|
|
Core operating loss
(non-GAAP)
|
|
(1,919)
|
|
|
|
(4,020)
|
|
|
Core operating
margin (non-GAAP)
|
|
(3.4)
|
%
|
|
|
(8.6)
|
%
|
|
|
|
|
|
|
|
|
Diluted loss per
share (GAAP)
|
|
|
(3.64)
|
|
|
|
(7.24)
|
|
Pension FAS/CAS service
cost adjustment
|
|
(663)
|
|
(1.10)
|
|
|
(621)
|
|
(1.04)
|
|
Postretirement FAS/CAS
service cost adjustment
|
|
|
(200)
|
|
(0.33)
|
|
|
|
(225)
|
|
(0.38)
|
|
Non-operating pension
expense
|
|
(402)
|
|
(0.66)
|
|
|
(666)
|
|
(1.13)
|
|
Non-operating
postretirement expense
|
|
|
(44)
|
|
(0.07)
|
|
|
|
(44)
|
|
(0.07)
|
|
Provision for deferred
income taxes on adjustments 1
|
|
275
|
|
0.45
|
|
|
327
|
|
0.55
|
|
Subtotal of
adjustments
|
|
($1,034)
|
|
($1.71)
|
|
|
($1,229)
|
|
($2.07)
|
|
Core loss per share
(non-GAAP)
|
|
|
($5.35)
|
|
|
|
($9.31)
|
|
|
|
|
|
|
|
|
Weighted average
diluted shares (in millions)
|
|
|
605.0
|
|
|
|
594.0
|
|
|
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-third-quarter-results-301967194.html
SOURCE Boeing