Boeing Reports
First-Quarter Results
CHICAGO, April 24, 2019 /PRNewswire/ --
- Engaging global regulators and customers on safe return to
service of the 737 MAX
- Revenue of $22.9 billion
reflecting 149 commercial deliveries and higher defense and
services volume
- GAAP EPS of $3.75 and core EPS
(non-GAAP)* of $3.16
- Operating cash flow of $2.8
billion; paid $1.2 billion of dividends
- Total backlog of $487 billion,
including more than 5,600 commercial airplanes
- Cash and marketable securities of $7.7 billion provide strong liquidity
- Previously issued 2019 guidance does not reflect 737 MAX
impacts; new guidance to be issued at a future date
|
|
|
|
|
|
Table 1. Summary Financial Results |
First
Quarter |
|
|
(Dollars in Millions, except per share
data) |
2019 |
|
2018 |
|
Change |
|
|
|
|
|
|
Revenues |
$22,917 |
|
$23,382 |
|
(2)% |
|
|
|
|
|
|
GAAP |
|
|
|
|
|
Earnings From Operations |
$2,350 |
|
$2,875 |
|
(18)% |
Operating Margin |
10.3% |
|
12.3% |
|
(2.0) Pts |
Net Earnings |
$2,149 |
|
$2,477 |
|
(13)% |
Earnings Per Share |
$3.75 |
|
$4.15 |
|
(10)% |
Operating Cash Flow |
$2,788 |
|
$3,136 |
|
(11)% |
Non-GAAP* |
|
|
|
|
|
Core Operating Earnings |
$1,986 |
|
$2,510 |
|
(21)% |
Core Operating Margin |
8.7% |
|
10.7% |
|
(2.0) Pts |
Core Earnings Per Share |
$3.16 |
|
$3.64 |
|
(13)% |
|
*Non-GAAP measure; complete
definitions of Boeing's non-GAAP measures are on page 5, "Non-GAAP
Measures Disclosures." |
The Boeing Company [NYSE: BA] reported first-quarter revenue of
$22.9 billion, GAAP earnings per
share of $3.75 and core earnings per
share (non-GAAP)* of $3.16,
reflecting lower 737 deliveries partially offset by higher defense
and services volume (Table 1). Boeing generated operating cash flow
of $2.8 billion and paid $1.2 billion of dividends.
The previously issued 2019 financial guidance does not reflect
737 MAX impacts. Due to the uncertainty of the timing and
conditions surrounding return to service of the 737 MAX fleet, new
guidance will be issued at a future date. Boeing is making steady
progress on the path to final certification for a software update
for the 737 MAX, with over 135 test and production flights of the
software update complete. The company continues to work closely
with global regulators and our airline partners to comprehensively
test the software and finalize a robust package of training and
educational resources.
"Across the company, we are focused on safety, returning the 737
MAX to service, and earning and re-earning the trust and confidence
of customers, regulators and the flying public," said Boeing
Chairman, President and Chief Executive Officer Dennis Muilenburg. "As we work through this
challenging time for our customers, stakeholders and the company,
our attention remains on driving excellence in quality and
performance and running a healthy sustained growth
business built on strong, long-term fundamentals."
The quarter's operating performance was highlighted by key
defense wins, strong commercial widebody performance and orders,
continued robust services growth, and receiving Embraer shareholder
approval for the proposed strategic partnership.
|
|
|
|
Table 2. Cash Flow |
First
Quarter |
(Millions) |
2019 |
|
2018 |
Operating Cash Flow |
$2,788 |
|
$3,136 |
Less Additions to Property, Plant &
Equipment |
($501) |
|
($394) |
Free Cash Flow* |
$2,287 |
|
$2,742 |
|
*Non-GAAP measure; complete
definitions of Boeing's non-GAAP measures are on page 5, "Non-GAAP
Measures Disclosures." |
Operating cash flow was $2.8
billion in the quarter, primarily reflecting lower 737
deliveries as well as timing of receipts and expenditures (Table
2). During the quarter, the company paid $1.2 billion in dividends, reflecting a 20
percent increase in dividends per share compared to the same period
of the prior year. The company repurchased 6.1 million shares for
$2.3 billion in the quarter, all
of which occurred prior to mid-March.
|
|
|
|
Table 3. Cash, Marketable Securities and Debt
Balances |
Quarter-End |
(Billions) |
Q1 19 |
|
Q4 18 |
Cash |
$6.8 |
|
$7.7 |
Marketable Securities1 |
$0.9 |
|
$0.9 |
Total |
$7.7 |
|
$8.6 |
Debt Balances: |
|
|
|
The Boeing Company, net of intercompany loans to
BCC |
$12.6 |
|
$11.3 |
Boeing Capital, including intercompany loans |
$2.1 |
|
$2.5 |
Total Consolidated Debt |
$14.7 |
|
$13.8 |
|
1 Marketable securities
consists primarily of time deposits due within one year classified
as "short-term investments." |
Cash and investments in marketable securities totaled
$7.7 billion, compared to
$8.6 billion at the beginning of the
quarter (Table 3). Debt was $14.7
billion, up from $13.8 billion
at the beginning of the quarter primarily due to the issuance of
new debt.
Total company backlog at quarter-end remained robust at
$487 billion.
Segment Results
Commercial Airplanes
|
|
|
|
|
|
Table 4. Commercial Airplanes |
First
Quarter |
|
|
(Dollars in Millions) |
2019 |
|
2018 |
|
Change |
|
|
|
|
|
|
Commercial Airplanes Deliveries |
149 |
|
184 |
|
(19%) |
|
|
|
|
|
|
Revenues |
$11,822 |
|
$12,945 |
|
(9%) |
Earnings from Operations |
$1,173 |
|
$1,412 |
|
(17%) |
Operating Margin |
9.9% |
|
10.9% |
|
(1.0) Pts |
Commercial Airplanes first-quarter revenue was $11.8 billion reflecting lower 737 deliveries
partially offset by favorable mix (Table 4). First-quarter
operating margin was 9.9 percent reflecting lower 737 deliveries
partially offset by a higher margin on the 787 program. The
reported margin also reflects increased costs associated with the
recent 737 production rate adjustment.
During the quarter, Commercial Airplanes delivered 149 airplanes
and the production rate for the 787 increased to 14 airplanes per
month. Commercial Airplanes captured several widebody orders during
the quarter, including orders for 18 777X airplanes for British
Airways parent company IAG, 20 787 airplanes for Lufthansa, and 10
787 airplanes for Bamboo Airways. The first 777X flight test
airplane rolled out of the factory, and the program remains on
track for flight testing this year and first delivery in 2020.
Commercial Airplanes backlog remains healthy with over 5,600
airplanes valued at $399 billion.
Defense, Space & Security
|
|
|
|
|
|
Table 5. Defense, Space & Security |
First
Quarter |
|
|
(Dollars in Millions) |
2019 |
|
2018 |
|
Change |
|
|
|
|
|
|
Revenues |
$6,611 |
|
$6,481 |
|
2% |
Earnings from Operations |
$847 |
|
$757 |
|
12% |
Operating Margin |
12.8% |
|
11.7% |
|
1.1 Pts |
Defense, Space & Security first-quarter revenue increased to
$6.6 billion primarily driven by
higher volume across satellites, weapons and surveillance aircraft
partially offset by lower C-17 volume (Table 5). First-quarter
operating margin increased to 12.8 percent reflecting a gain on
sale of property partially offset by unfavorable mix.
During the quarter, Defense, Space & Security was awarded a
multi-year contract for 78 F/A-18 Super Hornets for the U.S. Navy
as well as contracts for 5 Extra Large Unmanned Undersea Vehicles
for the U.S. Navy, 5 E-7 AEW&C aircraft for the U.K. Royal Air
Force, and 19 P-8 Poseidon aircraft for the U.S. Navy, Royal
Norwegian Navy and U.K. Royal Navy.
Key milestones achieved during the quarter included completion of
the first Ground-based Midcourse Defense test with two
interceptors, successful environmental testing of the Commercial
Crew spacecraft, and the first flight of the SB>1 DEFIANT™
helicopter. Defense, Space & Security also delivered the first
7 KC-46 Tankers to the U.S. Air Force.
Defense, Space & Security booked orders valued at
$12 billion during the quarter and
backlog grew to $67 billion, of which
31% percent represents orders from customers outside the U.S.
Global Services
|
|
|
|
|
|
Table 6. Global Services |
First
Quarter |
|
|
(Dollars in Millions) |
2019 |
|
2018 |
|
Change |
|
|
|
|
|
|
Revenues |
$4,619 |
|
$3,950 |
|
17% |
Earnings from Operations |
$653 |
|
$647 |
|
1% |
Operating Margin |
14.1% |
|
16.4% |
|
(2.3) Pts |
Global Services first-quarter revenue increased to $4.6 billion, primarily driven by higher volume
across the portfolio including the acquisition of KLX (Table 6).
First-quarter operating margin was 14.1 percent reflecting mix of
products and services and less favorable performance.
During the quarter, Global Services was awarded contracts for
Performance Based Logistics for V-22 for the U.S. Navy and P-8A
training for the U.K. Royal Air Force. Global Services captured an
order for 10 737-800 converted freighters for GECAS, secured an
agreement to optimize crew operations for Royal Air Maroc, and
expanded global distribution of hardware and chemical products to
Joramco. In addition, Global Services completed the acquisition of
ForeFlight, a leading provider of innovative mobile and web-based
aviation applications.
Additional Financial Information
|
|
|
|
Table 7. Additional Financial
Information |
First
Quarter |
(Dollars in Millions) |
2019 |
|
2018 |
Revenues |
|
|
|
Boeing Capital |
$66 |
|
$65 |
Unallocated items, eliminations and other |
($201) |
|
($59) |
Earnings from Operations |
|
|
|
Boeing Capital |
$20 |
|
$20 |
FAS/CAS service cost adjustment |
$364 |
|
$365 |
Other unallocated items and eliminations |
($707) |
|
($326) |
Other income, net |
$106 |
|
$66 |
Interest and debt expense |
($123) |
|
($102) |
Effective tax rate |
7.9% |
|
12.8% |
At quarter-end, Boeing Capital's net portfolio balance was
$2.5 billion. Revenue in other
unallocated items and eliminations decreased primarily due to the
timing of eliminations for intercompany aircraft deliveries. The
change in earnings from other unallocated items and eliminations is
primarily due to a customer financing impairment, higher
deferred compensation expense and increased enterprise research and
development investment. The effective tax rate for the first
quarter decreased from the same period in the prior year primarily
due to a higher foreign-derived intangible income benefit and
higher excess tax benefits related to share-based payments.
Outlook
The previously issued 2019 financial guidance does not reflect
737 MAX impacts. Due to the uncertainty of the timing and
conditions surrounding return to service of the 737 MAX fleet, new
guidance will be issued at a future date.
Non-GAAP Measures Disclosures
We supplement the reporting of our financial information
determined under Generally Accepted Accounting Principles in
the United States of America
(GAAP) with certain non-GAAP financial information. The non-GAAP
financial information presented excludes certain significant items
that may not be indicative of, or are unrelated to, results from
our ongoing business operations. We believe that these non-GAAP
measures provide investors with additional insight into the
company's ongoing business performance. These non-GAAP measures
should not be considered in isolation or as a substitute for the
related GAAP measures, and other companies may define such measures
differently. We encourage investors to review our financial
statements and publicly-filed reports in their entirety and not to
rely on any single financial measure. The following definitions are
provided:
Core Operating Earnings, Core Operating Margin and Core Earnings
Per Share
Core operating earnings is defined as GAAP earnings from
operations excluding the FAS/CAS service cost
adjustment. The FAS/CAS service cost adjustment
represents the difference between the FAS pension and
postretirement service costs calculated under GAAP and costs
allocated to the business segments. Core operating margin is
defined as core operating earnings expressed as a percentage of
revenue. Core earnings per share is defined as GAAP diluted
earnings per share excluding the net earnings per share impact
of the FAS/CAS service cost adjustment and Non-operating
pension and postretirement expenses. Non-operating pension and
postretirement expenses represent the components of net periodic
benefit costs other than service cost. Pension costs, comprising
service and prior service costs computed in accordance with GAAP
are allocated to Commercial Airplanes and BGS businesses supporting
commercial customers. Pension costs allocated to BDS and BGS
businesses supporting government customers are computed in
accordance with U.S. Government Cost Accounting Standards (CAS),
which employ different actuarial assumptions and accounting
conventions than GAAP. CAS costs are allocable to government
contracts. Other postretirement benefit costs are allocated to all
business segments based on CAS, which is generally based on
benefits paid. Management uses core operating earnings, core
operating margin and core earnings/per share for purposes of
evaluating and forecasting underlying business performance.
Management believes these core earnings measures provide investors
additional insights into operational performance as they exclude
non-service pension and post-retirement costs, which primarily
represent costs driven by market factors and costs not allocable to
government contracts. A reconciliation between the GAAP and
non-GAAP measures is provided on page 12.
Free Cash Flow
Free cash flow is defined as GAAP operating cash flow
without capital expenditures for property, plant and equipment
additions. Management believes free cash flow provides
investors with an important perspective on the cash available for
shareholders, debt repayment, and acquisitions after making the
capital investments required to support ongoing business operations
and long term value creation. Free cash flow does not represent the
residual cash flow available for discretionary expenditures as it
excludes certain mandatory expenditures such as repayment of
maturing debt. Management uses free cash flow as a measure to
assess both business performance and overall liquidity. Table 2
provides a reconciliation between GAAP operating cash flow and free
cash flow.
Caution Concerning
Forward-Looking Statements
This press release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995. Words such as "may," "should," "expects," "intends,"
"projects," "plans," "believes," "estimates," "targets,"
"anticipates," and similar expressions generally identify these
forward-looking statements. Examples of forward-looking statements
include statements relating to our future financial condition and
operating results, as well as any other statement that does not
directly relate to any historical or current fact. Forward-looking
statements are based on expectations and assumptions that we
believe to be reasonable when made, but that may not prove to be
accurate. These statements are not guarantees and are subject to
risks, uncertainties, and changes in circumstances that are
difficult to predict. Many factors could cause actual results to
differ materially and adversely from these forward-looking
statements. Among these factors are risks related to: (1) the
timing and conditions surrounding the return to service of the 737
MAX fleet; (2) general conditions in the economy and our industry,
including those due to regulatory changes; (3) our reliance on our
commercial airline customers; (4) the overall health of our
aircraft production system, planned commercial aircraft production
rate changes, our commercial development and derivative aircraft
programs, and our aircraft being subject to stringent performance
and reliability standards; (5) changing budget and appropriation
levels and acquisition priorities of the U.S. government; (6) our
dependence on U.S. government contracts; (7) our reliance on
fixed-price contracts; (8) our reliance on cost-type contracts; (9)
uncertainties concerning contracts that include in-orbit incentive
payments; (10) our dependence on our subcontractors and suppliers,
as well as the availability of raw materials; (11) changes in
accounting estimates; (12) changes in the competitive landscape in
our markets; (13) our non-U.S. operations, including sales to
non-U.S. customers; (14) threats to the security of our or our
customers' information; (15) potential adverse developments in new
or pending litigation and/or government investigations; (16)
customer and aircraft concentration in our customer financing
portfolio; (17) changes in our ability to obtain debt on
commercially reasonable terms and at competitive rates; (18)
realizing the anticipated benefits of mergers, acquisitions, joint
ventures/strategic alliances or divestitures; (19) the adequacy of
our insurance coverage to cover significant risk exposures; (20)
potential business disruptions, including those related to physical
security threats, information technology or cyber-attacks,
epidemics, sanctions or natural disasters; (21) work stoppages or
other labor disruptions; (22) substantial pension and other
postretirement benefit obligations; and (23) potential
environmental liabilities.
Additional information concerning these and other factors can be
found in our filings with the Securities and Exchange Commission,
including our most recent Annual Report on Form 10-K, Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K. Any
forward-looking statement speaks only as of the date on which it is
made, and we assume no obligation to update or revise any
forward-looking statement, whether as a result of new information,
future events, or otherwise, except as required by law.
Contact: |
|
|
|
|
|
Investor Relations: |
|
Maurita Sutedja or Keely Moos (312) 544-2140 |
Communications: |
|
Caroline Hutcheson (312) 544-2002 |
The Boeing Company
and Subsidiaries |
Consolidated
Statements of Operations |
(Unaudited) |
|
|
Three months
ended
March 31 |
(Dollars in millions, except per share
data) |
2019 |
|
2018 |
Sales of products |
$20,225 |
|
$20,820 |
Sales of services |
2,692 |
|
2,562 |
Total revenues |
22,917 |
|
23,382 |
|
|
|
|
Cost of products |
(16,238) |
|
(16,816) |
Cost of services |
(2,389) |
|
(1,992) |
Boeing Capital interest expense |
(18) |
|
(16) |
Total costs and expenses |
(18,645) |
|
(18,824) |
|
4,272 |
|
4,558 |
Income from operating investments, net |
20 |
|
74 |
General and administrative expense |
(1,184) |
|
(997) |
Research and development expense, net |
(866) |
|
(764) |
Gain on dispositions, net |
108 |
|
4 |
Earnings from operations |
2,350 |
|
2,875 |
Other income, net |
106 |
|
66 |
Interest and debt expense |
(123) |
|
(102) |
Earnings before income taxes |
2,333 |
|
2,839 |
Income tax expense |
(184) |
|
(362) |
Net earnings |
$2,149 |
|
$2,477 |
|
|
|
|
Basic earnings per share |
$3.79 |
|
$4.19 |
|
|
|
|
Diluted earnings per share |
$3.75 |
|
$4.15 |
|
|
|
|
Weighted average diluted shares
(millions) |
572.4 |
|
597.2 |
The Boeing Company
and Subsidiaries |
Consolidated
Statements of Financial Position |
(Unaudited) |
|
(Dollars in millions, except per share
data) |
March 31
2019 |
|
December 31
2018 |
Assets |
|
|
|
Cash and cash equivalents |
$6,836 |
|
$7,637 |
Short-term and other investments |
893 |
|
927 |
Accounts receivable, net |
3,669 |
|
3,879 |
Unbilled receivables, net |
10,208 |
|
10,025 |
Current portion of customer financing, net |
340 |
|
460 |
Inventories |
65,369 |
|
62,567 |
Other current assets |
2,194 |
|
2,335 |
Total current assets |
89,509 |
|
87,830 |
Customer financing, net |
2,236 |
|
2,418 |
Property, plant and equipment, net of accumulated
depreciation of $18,821 and $18,568 |
12,594 |
|
12,645 |
Goodwill |
7,967 |
|
7,840 |
Acquired intangible assets, net |
3,498 |
|
3,429 |
Deferred income taxes |
281 |
|
284 |
Investments |
1,183 |
|
1,087 |
Other assets, net of accumulated amortization of
$544 and $503 |
2,941 |
|
1,826 |
Total assets |
$120,209 |
|
$117,359 |
Liabilities and equity |
|
|
|
Accounts payable |
$14,693 |
|
$12,916 |
Accrued liabilities |
13,007 |
|
14,808 |
Advances and progress billings |
52,534 |
|
50,676 |
Short-term debt and current portion of long-term
debt |
3,381 |
|
3,190 |
Total current liabilities |
83,615 |
|
81,590 |
Deferred income taxes |
1,656 |
|
1,736 |
Accrued retiree health care |
4,535 |
|
4,584 |
Accrued pension plan liability, net |
15,077 |
|
15,323 |
Other long-term liabilities |
3,731 |
|
3,059 |
Long-term debt |
11,363 |
|
10,657 |
Shareholders' equity: |
|
|
|
Common stock, par value $5.00 – 1,200,000,000
shares authorized; 1,012,261,159 shares issued |
5,061 |
|
5,061 |
Additional paid-in capital |
6,573 |
|
6,768 |
Treasury stock, at cost - 448,849,765 and
444,619,970 shares |
(54,630) |
|
(52,348) |
Retained earnings |
58,090 |
|
55,941 |
Accumulated other comprehensive loss |
(14,969) |
|
(15,083) |
Total shareholders' equity |
125 |
|
339 |
Noncontrolling interests |
107 |
|
71 |
Total equity |
232 |
|
410 |
Total liabilities and equity |
$120,209 |
|
$117,359 |
The Boeing Company
and Subsidiaries |
Consolidated
Statements of Cash Flows |
(Unaudited) |
|
|
Three months
ended
March 31 |
(Dollars in millions) |
2019 |
|
2018 |
Cash flows – operating
activities: |
|
|
|
Net earnings |
$2,149 |
|
$2,477 |
Adjustments to reconcile net earnings to net cash
provided by operating activities: |
|
|
|
Non-cash items – |
|
|
|
Share-based plans expense |
47 |
|
45 |
Depreciation and amortization |
521 |
|
501 |
Investment/asset impairment charges, net |
34 |
|
20 |
Customer financing valuation adjustments |
249 |
|
(1) |
Gain on dispositions, net |
(108) |
|
(4) |
Other charges and credits, net |
74 |
|
60 |
Changes in assets and liabilities – |
|
|
|
Accounts receivable |
206 |
|
92 |
Unbilled receivables |
(183) |
|
(1,628) |
Advances and progress billings |
1,857 |
|
1,917 |
Inventories |
(2,725) |
|
283 |
Other current assets |
164 |
|
(103) |
Accounts payable |
1,624 |
|
591 |
Accrued liabilities |
(919) |
|
(1,337) |
Income taxes receivable, payable and deferred |
116 |
|
348 |
Other long-term liabilities |
(281) |
|
(243) |
Pension and other postretirement plans |
(188) |
|
(50) |
Customer financing, net |
152 |
|
44 |
Other |
(1) |
|
124 |
Net cash provided by operating
activities |
2,788 |
|
3,136 |
Cash flows – investing activities: |
|
|
|
Property, plant and equipment additions |
(501) |
|
(394) |
Property, plant and equipment reductions |
110 |
|
27 |
Acquisitions, net of cash acquired |
(276) |
|
|
Contributions to investments |
(457) |
|
(249) |
Proceeds from investments |
366 |
|
752 |
Purchase of distribution rights |
|
|
(20) |
Other |
(9) |
|
3 |
Net cash (used)/provided by investing
activities |
(767) |
|
119 |
Cash flows – financing activities: |
|
|
|
New borrowings |
5,237 |
|
2,687 |
Debt repayments |
(4,374) |
|
(1,371) |
Contributions from noncontrolling interests |
7 |
|
20 |
Stock options exercised |
42 |
|
51 |
Employee taxes on certain share-based payment
arrangements |
(233) |
|
(226) |
Common shares repurchased |
(2,341) |
|
(3,000) |
Dividends paid |
(1,161) |
|
(1,006) |
Net cash used by financing activities |
(2,823) |
|
(2,845) |
Effect of exchange rate changes on cash and cash
equivalents, including restricted |
1 |
|
8 |
Net (decrease) / increase in cash & cash
equivalents, including restricted |
(801) |
|
418 |
Cash & cash equivalents, including restricted,
at beginning of year |
7,813 |
|
8,887 |
Cash & cash equivalents, including
restricted, at end of period |
7,012 |
|
9,305 |
Less restricted cash & cash equivalents,
included in Investments |
176 |
|
70 |
Cash and cash equivalents at end of
period |
$6,836 |
|
$9,235 |
The Boeing Company and
Subsidiaries
Summary of Business Segment Data
(Unaudited)
Effective at the beginning of 2019, all revenues and costs
associated with military derivative aircraft production are
reported in the Defense, Space & Security segment. Revenues and
costs associated with military derivative aircraft production were
previously reported in the Commercial Airplanes and Defense, Space
& Security segments. Business segment data for 2018 reflects
the realignment for military derivative aircraft as well as the
realignment of certain programs from Defense, Space & Security
to Global Services.
|
Three months
ended
March 31 |
(Dollars in millions) |
2019 |
|
2018 |
Revenues: |
|
|
|
Commercial Airplanes |
$11,822 |
|
$12,945 |
Defense, Space & Security |
6,611 |
|
6,481 |
Global Services |
4,619 |
|
3,950 |
Boeing Capital |
66 |
|
65 |
Unallocated items, eliminations and other |
(201) |
|
(59) |
Total revenues |
$22,917 |
|
$23,382 |
Earnings from operations: |
|
|
|
Commercial Airplanes |
$1,173 |
|
$1,412 |
Defense, Space & Security |
847 |
|
757 |
Global Services |
653 |
|
647 |
Boeing Capital |
20 |
|
20 |
Segment operating profit |
2,693 |
|
2,836 |
Unallocated items, eliminations and other |
(707) |
|
(326) |
FAS/CAS service cost adjustment |
364 |
|
365 |
Earnings from operations |
2,350 |
|
2,875 |
Other income, net |
106 |
|
66 |
Interest and debt expense |
(123) |
|
(102) |
Earnings before income taxes |
2,333 |
|
2,839 |
Income tax expense |
(184) |
|
(362) |
Net earnings |
$2,149 |
|
$2,477 |
|
|
|
|
Research and development expense, net: |
|
|
|
Commercial Airplanes |
$564 |
|
$549 |
Defense, Space & Security |
188 |
|
183 |
Global Services |
40 |
|
34 |
Other |
74 |
|
(2) |
Total research and development expense,
net |
$866 |
|
$764 |
|
|
|
|
Unallocated items, eliminations and
other: |
|
|
|
Share-based plans |
($14) |
|
($18) |
Deferred compensation |
(102) |
|
(29) |
Amortization of previously capitalized
interest |
(24) |
|
(25) |
Customer financing impairment |
(250) |
|
|
Research and development expense, net |
(74) |
|
2 |
Eliminations and other unallocated items |
(243) |
|
(256) |
Sub-total (included in core operating
earnings) |
(707) |
|
(326) |
Pension FAS/CAS service cost adjustment |
274 |
|
283 |
Postretirement FAS/CAS service cost
adjustment |
90 |
|
82 |
FAS/CAS service cost adjustment |
364 |
|
365 |
Total |
($343) |
|
$39 |
The Boeing Company and
Subsidiaries |
Operating and Financial
Data |
(Unaudited) |
|
Deliveries |
Three months
ended
March 31 |
Commercial Airplanes |
2019 |
|
2018 |
|
737 |
89 |
|
132 |
|
747 |
2 |
|
2 |
|
767 |
12 |
|
4 |
|
777 |
10 |
(1) |
12 |
|
787 |
36 |
|
34 |
|
Total |
149 |
|
184 |
|
Note: Aircraft accounted for as
revenues by BCA and as operating leases in consolidation identified
by parentheses |
|
|
|
Defense, Space & Security |
|
|
|
|
AH-64 Apache (New) |
6 |
|
— |
|
AH-64 Apache (Remanufactured) |
22 |
|
6 |
|
CH-47 Chinook (New) |
7 |
|
4 |
|
CH-47 Chinook (Renewed) |
4 |
|
4 |
|
F-15 Models |
4 |
|
2 |
|
F/A-18 Models |
7 |
|
5 |
|
KC-46 Tanker |
7 |
|
— |
|
P-8 Models |
3 |
|
4 |
|
Commercial and Civil Satellites |
— |
|
— |
|
Military Satellites |
— |
|
— |
|
|
|
|
|
Total backlog (Dollars in
millions) |
March 31
2019 |
|
December 31
2018 |
|
Commercial Airplanes |
$399,371 |
|
$408,140 |
|
Defense, Space & Security |
66,790 |
|
61,277 |
|
Global Services |
20,688 |
|
21,064 |
|
Total backlog |
$486,849 |
|
$490,481 |
|
|
|
Contractual backlog |
$458,998 |
|
$462,070 |
|
Unobligated backlog |
27,851 |
|
28,411 |
|
Total backlog |
$486,849 |
|
$490,481 |
|
The Boeing Company and
Subsidiaries
Reconciliation of Non-GAAP Measures
(Unaudited)
The tables provided below reconcile the non-GAAP financial
measures core operating earnings, core operating margin, and core
earnings per share with the most directly comparable GAAP financial
measures, earnings from operations, operating margin, and diluted
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) |
First Quarter
2019 |
|
First Quarter 2018 |
|
$ millions |
Per Share |
|
$ millions |
Per Share |
Revenues |
22,917 |
|
|
23,382 |
|
Earnings from operations (GAAP) |
2,350 |
|
|
2,875 |
|
Operating margin (GAAP) |
10.3% |
|
|
12.3% |
|
|
|
|
|
|
|
FAS/CAS service cost adjustment: |
|
|
|
|
|
Pension FAS/CAS service cost adjustment |
(274) |
|
|
(283) |
|
Postretirement FAS/CAS service cost
adjustment |
(90) |
|
|
(82) |
|
FAS/CAS service cost adjustment |
(364) |
|
|
(365) |
|
Core operating earnings (non-GAAP) |
$1,986 |
|
|
$2,510 |
|
Core operating margin (non-GAAP) |
8.7% |
|
|
10.7% |
|
|
|
|
|
|
|
Diluted earnings per share (GAAP) |
|
$3.75 |
|
|
$4.15 |
Pension FAS/CAS service cost adjustment |
($274) |
(0.48) |
|
($283) |
(0.47) |
Postretirement FAS/CAS service cost
adjustment |
(90) |
(0.16) |
|
(82) |
(0.14) |
Non-operating pension expense |
(93) |
(0.16) |
|
(42) |
(0.07) |
Non-operating postretirement expense |
27 |
0.05 |
|
24 |
0.04 |
Provision for deferred income taxes on
adjustments 1 |
90 |
0.16 |
|
80 |
0.13 |
Subtotal of adjustments |
($340) |
($0.59) |
|
($303) |
($0.51) |
Core earnings per share (non-GAAP) |
|
$3.16 |
|
|
$3.64 |
|
|
|
|
|
|
Weighted average diluted shares (in
millions) |
|
572.4 |
|
|
597.2 |
|
1 The income tax
impact is calculated using the U.S. corporate statutory tax
rate. |
|
|
|
|
|
|
|