TIDMBOE
Boeing Reports Second-Quarter Results
=- Revenue increased 11 percent to $24.5 billion reflecting record commercial
deliveries
=- Core EPS (non-GAAP)* of $1.62; GAAP EPS of $1.59
=- Strong operating cash flow of $3.3 billion on higher volume and improved
productivity
=- Backlog remains strong at $489 billion with nearly 5,700 commercial airplane
orders
=- Repurchased 14 million shares for $2.0 billion
=- Cash & marketable securities of $9.6 billion provide strong liquidity
=- EPS guidance updated for KC-46 charge that offset strong performance; cash
guidance unchanged
CHICAGO, July 22, 2015 --
Table 1. Summary Second Quarter First Half
Financial Results
(Dollars in 2015 2014 Change 2015 2014 Change
Millions, except
per share data)
Revenues $24,543 $22,045 11% $46,692 $42,510 10%
Non-GAAP*
Core Operating $1,713 $1,991 (14)% $3,845 $4,086 (6)%
Earnings
Core Operating 7.0% 9.0% (2.0) Pts 8.2% 9.6% (1.4) Pts
Margin
Core Earnings Per $1.62 $2.42 (33)% $3.59 $4.16 (14)%
Share
GAAP
Earnings From $1,683 $1,787 (6)% $3,702 $3,329 11%
Operations
Operating Margin 6.9% 8.1% (1.2) Pts 7.9% 7.8% 0.1 Pts
Net Earnings $1,110 $1,653 (33)% $2,446 $2,618 (7)%
Earnings Per $1.59 $2.24 (29)% $3.46 $3.50 (1)%
Share
Operating Cash $3,297 $1,809 82% $3,385 $2,921 16%
Flow
* Non-GAAP measures. Complete definitions of Boeing's non-GAAP measures are on
page 6, "Non-GAAP Measures Disclosures."
The Boeing Company [NYSE: BA] reported second-quarter revenue increased 11
percent to $24.5 billion on record commercial deliveries (Table 1). Second
quarter 2015 results included the previously announced $536 million after-tax
charge ($0.77 per share) on the KC-46 Tanker program reflecting higher
estimated costs. Core earnings per share (non-GAAP)* guidance for 2015 has been
adjusted to between $7.70 and $7.90 per share, from $8.20 and $8.40, to reflect
the impact of the second quarter 2015 KC-46 Tanker charge ($0.77 per share),
partially offset by strong performance ($0.27 per share). GAAP earnings per
share has been adjusted to between $7.60 and $7.80, from $8.10 and $8.30.
"Record commercial airplane deliveries to customers worldwide drove solid
revenue growth, and the strength of our overall portfolio and diligent focus
produced significant operating cash flow during the quarter," said Boeing
President and Chief Executive Officer Dennis Muilenburg. "Strong operating
performance across our commercial and defense production programs partially
offset the tanker charge and enabled us to maintain our commitments to return
cash to our shareholders and invest in innovation and our people."
"Overall, our outlook for the second half of the year remains positive. On the
tanker program, we are investing the necessary resources to keep this vitally
important program on schedule for our customer. We have a clear understanding
of the work to be done and we are confident that the long-term financial value
of the program will reward our additional investment."
"With our sustained focus on productivity and growth, we will continue to
profitably deliver on our large and diverse backlog, capture new orders, and
deliver increasing value to all of our stakeholders."
Table 2. Cash Flow Second Quarter First Half
(Millions) 2015 2014 2015 2014
Operating Cash Flow $3,297 $1,809 $3,385 $2,921
Less Additions to Property, Plant & ($692) ($449) ($1,266) ($946)
Equipment
Free Cash Flow* $2,605 $1,360 $2,119 $1,975
Operating cash flow in the quarter was $3.3 billion, reflecting commercial
airplane production rates and strong operating performance (Table 2). During
the quarter, the company repurchased 14 million shares for $2.0 billion,
leaving $7.5 billion remaining under the current repurchase authorization which
is expected to be completed over approximately the next two years. The company
also paid $0.6 billion in dividends in the quarter, reflecting an approximately
25 percent increase in dividends per share compared to the same period of the
prior year.
Table 3. Cash, Marketable Securities and Debt Balances Quarter-End
(Billions) Q2 15 Q1 15
Cash $9.1 $8.6
Marketable Securities1 $0.5 $1.0
Total $9.6 $9.6
Debt Balances:
The Boeing Company, net of intercompany loans to BCC $6.6 $6.6
Boeing Capital, including intercompany loans $2.4 $2.4
Total Consolidated Debt $9.0 $9.0
1Marketable securities consists primarily of time deposits due within one year
classified as "short-term investments."
Cash and investments in marketable securities totaled $9.6 billion and debt
totaled $9.0 billion, both unchanged from the beginning of the quarter (Table
3).
Total company backlog at quarter-end was $489 billion, down from $495 billion
at the beginning of the quarter, and included net orders for the quarter of $18
billion.
Segment Results
Commercial Airplanes
Table 4. Commercial Second Quarter First Half
Airplanes
(Dollars in Millions) 2015 2014 Change 2015 2014 Change
Commercial Airplanes 197 181 9% 381 342 11%
Deliveries
Revenues $16,877 $14,304 18% $32,258 $27,041 19%
Earnings from $1,206 $1,550 (22)% $2,823 $3,052 (8) %
Operations
Operating Margin 7.1% 10.8% (3.7) 8.8% 11.3% (2.5)
Pts Pts
Commercial Airplanes second-quarter revenue increased 18 percent to $16.9
billion on higher delivery volume and mix (Table 4). Second-quarter operating
margin was 7.1 percent, reflecting the previously announced $513 million
pre-tax charge on the KC-46 Tanker program and the dilutive impact of higher
787 and 747 deliveries partially offset by strong performance on production
programs.
During the quarter, Commercial Airplanes captured orders for 116 737 MAX
airplanes. The 737 program has won over 2,800 firm orders for the 737 MAX since
launch. Also during the quarter, the company started assembly of the first 737
MAX airplane and the 787-10 program completed its Critical Design Review which
indicated the program's design is sound and development is on schedule.
Commercial Airplanes booked 171 net orders during the quarter. Backlog remains
strong with nearly 5,700 airplanes valued at $431 billion.
Defense, Space & Security
Table 5. Defense, Space & Second Quarter First Half
Security
(Dollars in Millions) 2015 2014 Change 2015 2014 Change
Revenues1
Boeing Military Aircraft $3,488 $3,520 (1)% $6,232 $6,975 (11)%
Network & Space Systems $1,938 $1,920 1% $3,670 $3,796 (3)%
Global Services & Support $2,118 $2,307 (8)% $4,351 $4,609 (6)%
Total BDS Revenues $7,544 $7,747 (3)% $14,253 $15,380 (7)%
Earnings from Operations1
Boeing Military Aircraft $123 $164 (25)% $384 $496 (23)%
Network & Space Systems $151 $150 1% $318 $318 -%
Global Services & Support $272 $268 1% $587 $546 8%
Total BDS Earnings from $546 $582 (6)% $1,289 $1,360 (5)%
Operations
Operating Margin 7.2% 7.5% (0.3) 9.0% 8.8% 0.2
Pts Pts
1 During the first quarter of 2015, certain programs were realigned between
Boeing Military Aircraft and Global Services & Support.
Defense, Space & Security's second-quarter revenue was $7.5 billion. Second
quarter operating margin was 7.2 percent, reflecting the previously announced
$322 million pre-tax charge recorded at BMA on the KC-46 Tanker program
partially offset by strong performance on production programs and mix (Table
5).
Boeing Military Aircraft (BMA) second-quarter revenue was $3.5 billion,
reflecting planned timing of deliveries and mix. Operating margin was 3.5
percent, reflecting the KC-46 Tanker program charge partially offset by strong
performance on production programs. During the quarter, BMA was awarded
contracts for six C-17 Globemaster III airlifters.
Network & Space Systems (N&SS) second-quarter revenue was $1.9 billion and
operating margin was unchanged at 7.8 percent. During the quarter, NASA awarded
Boeing the first ever commercial contract for a human spaceflight mission as
part of the existing Commercial Crew contract.
Global Services & Support (GS&S) second-quarter revenue was $2.1 billion,
reflecting lower volume in Aircraft Modernization and Sustainment. Operating
margin increased to 12.8 percent on improved program mix. During the quarter,
GS&S was awarded an F-15 international services contract extension.
Backlog at Defense, Space & Security was $58 billion, of which 39 percent
represents orders from international customers.
Additional Financial Information
Table 6. Additional Financial Information Second Quarter First Half
(Dollars in Millions) 2015 2014 2015 2014
Revenues
Boeing Capital $115 $90 $201 $172
Unallocated items, eliminations and other $7 ($96) ($20) ($83)
Earnings from Operations
Boeing Capital $11 $33 $31 $77
Unallocated pension/postretirement ($30) ($204) ($143) ($757)
Other unallocated items and eliminations ($50) ($174) ($298) ($403)
Other income, net $15 $11 $3 $20
Interest and debt expense ($75) ($81) ($136) ($173)
Effective tax rate 31.6% 3.7% 31.5% 17.6%
At quarter-end, Boeing Capital's net portfolio balance was $3.3 billion, down
from $3.4 billion at the beginning of the quarter (Table 6). Total pension
expense for the second quarter was $523 million, down from $693 million in the
same period of the prior year. Other unallocated items and eliminations totaled
$50 million at quarter end, down from $174 million in the same period of the
prior year, primarily due to lower elimination of intercompany profit and
deferred compensation expense. The company's effective income tax rate was 31.6
percent at quarter end, up from 3.7 percent in the same period of the prior
year. The second quarter 2014 effective income tax rate included $524 million
in tax benefits.
Outlook
The company's 2015 financial and delivery guidance (Table 7) reflects the
impact of the KC-46 Tanker charge and continued strong performance across the
company.
Table 7. 2015 Financial Current Prior
Outlook
(Dollars in Billions, Guidance Guidance
except per share data)
The Boeing Company
Revenue $94.5 - 96.5 $94.5 - 96.5
Core Earnings Per Share* $7.70 - 7.90 $8.20 - 8.40
GAAP Earnings Per Share $7.60 - 7.80 $8.10 - 8.30
Operating Cash Flow > $9 > $9
Commercial Airplanes
Deliveries 750 - 755 750 - 755
Revenue $64.5 - 65.5 $64.5 - 65.5
Operating Margin 9.0% 9.5% - 10.0%
Defense, Space & Security
(revised for business
realignment)
Revenue
Boeing Military Aircraft $12.5 $12.5
Network & Space Systems $8.0 $8.0
Global Services & Support $9.5 $9.5
Total BDS Revenue $29.5 - 30.5 $29.5 - 30.5
Operating Margin
Boeing Military Aircraft 8% 9.5%
Network & Space Systems 9.0% 9.0%
Global Services & Support 11.5% 11.0%
Total BDS Operating Margin 9.5% 9.75% - 10.0%
Boeing Capital
Portfolio Size Stable Stable
Revenue $0.3 $0.3
Pre-Tax Earnings $0.05 $0.05
Research & Development $3.5 $3.5
Capital Expenditures $2.8 $2.8
Pension Expense 1 $2.1 $2.1
Effective Tax Rate 2 29.0% 30.5%
1 Approximately $0.3 billion is expected to be
recorded in unallocated items and eliminations
2 Assumes the extension of the research and
development tax credit
* Non-GAAP measures. Complete definitions of Boeing's
non-GAAP measures are on page 6, "Non-GAAP Measures
Disclosures."
Non-GAAP Measures Disclosures
We supplement the reporting of our financial information determined under U.S.
generally accepted accounting principles (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
unallocated pension and post-retirement expense. 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 unallocated pension and post-retirement
expense. Unallocated pension and post-retirement expense represents the portion
of pension and other post-retirement costs that are not recognized by business
segments for segment reporting purposes. 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 unallocated 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 13.
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 are used to 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 our current expectations
and assumptions, which 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 production rate increases across multiple
commercial airline programs, our commercial development and derivative aircraft
programs, and our aircraft being subject to stringent performance and
reliability standards; (4) changing budget and appropriation levels and
acquisition priorities of the U.S. government; (5) our dependence on U.S.
government contracts; (6) our reliance on fixed-price contracts; (7) our
reliance on cost-type contracts; (8) uncertainties concerning contracts that
include in-orbit incentive payments; (9) our dependence on our subcontractors
and suppliers, as well as the availability of raw materials, (10) changes in
accounting estimates; (11) changes in the competitive landscape in our markets;
(12) our non-U.S. operations, including sales to non-U.S. customers; (13)
potential adverse developments in new or pending litigation and/or government
investigations; (14) customer and aircraft concentration in Boeing Capital's
customer financing portfolio; (15) changes in our ability to obtain debt on
commercially reasonable terms and at competitive rates in order to fund our
operations and contractual commitments; (16) realizing the anticipated benefits
of mergers, acquisitions, joint ventures/strategic alliances or divestitures;
(17) the adequacy of our insurance coverage to cover significant risk
exposures; (18) potential business disruptions, including those related to
physical security threats, information technology or cyber-attacks, epidemics,
sanctions or natural disasters; (19) work stoppages or other labor disruptions;
(20) significant changes in discount rates and actual investment return on
pension assets; (21) potential environmental liabilities; and (22) threats to
the security of our or our customers' information.
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: Troy Lahr or Rob Martin
(312) 544-2140
Communications: Bernard Choi (312)
544-2002
The Boeing Company and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
Six months ended Three months ended
June 30 June 30
(Dollars in millions, except 2015 2014 2015 2014
per share data)
Sales of products $41,408 $37,542 $21,923 $19,527
Sales of services 5,284 4,968 2,620 2,518
Total revenues 46,692 42,510 24,543 22,045
Cost of products (35,627) (31,932) (19,247) (16,674)
Cost of services (4,186) (3,999) (2,086) (1,979)
Boeing Capital interest (33) (35) (17) (17)
expense
Total costs and expenses (39,846) (35,966) (21,350) (18,670)
6,846 6,544 3,193 3,375
Income from operating 129 120 50 61
investments, net
General and administrative (1,705) (1,795) (760) (918)
expense
Research and development (1,569) (1,542) (800) (733)
expense, net
Gain on dispositions, net 1 2 2
Earnings from operations 3,702 3,329 1,683 1,787
Other income, net 3 20 15 11
Interest and debt expense (136) (173) (75) (81)
Earnings before income taxes 3,569 3,176 1,623 1,717
Income tax expense (1,123) (558) (513) (64)
Net earnings $2,446 $2,618 $1,110 $1,653
Basic earnings per share $3.50 $3.55 $1.61 $2.26
Diluted earnings per share $3.46 $3.50 $1.59 $2.24
Cash dividends paid per share $1.82 $1.46 $0.91 $0.73
Weighted average diluted 706.6 747.4 698.9 740.1
shares (millions)
The Boeing Company and Subsidiaries
Consolidated Statements of Financial Position
(Unaudited)
(Dollars in millions, except per share data) June 30 December 31
2015 2014
Assets
Cash and cash equivalents $9,157 $11,733
Short-term and other investments 468 1,359
Accounts receivable, net 7,927 7,729
Current portion of customer financing, net 209 190
Deferred income taxes 17 18
Inventories, net of advances and progress billings 49,028 46,756
Total current assets 66,806 67,785
Customer financing, net 3,175 3,371
Property, plant and equipment, net of accumulated 11,338 11,007
depreciation of $15,997 and $15,689
Goodwill 5,126 5,119
Acquired intangible assets, net 2,763 2,869
Deferred income taxes 6,264 6,576
Investments 1,256 1,154
Other assets, net of accumulated amortization of 1,374 1,317
$419 and $479
Total assets $98,102 $99,198
Liabilities and equity
Accounts payable $11,531 $10,667
Accrued liabilities 13,226 13,343
Advances and billings in excess of related costs 23,373 23,175
Deferred income taxes and income taxes payable 8,894 8,603
Short-term debt and current portion of long-term 112 929
debt
Total current liabilities 57,136 56,717
Accrued retiree health care 6,777 6,802
Accrued pension plan liability, net 17,537 17,182
Non-current income taxes payable 389 358
Other long-term liabilities 1,052 1,208
Long-term debt 8,904 8,141
Shareholders' equity:
Common stock, par value $5.00 - 1,200,000,000 5,061 5,061
shares authorized; 1,012,261,159 shares issued
Additional paid-in capital 4,721 4,625
Treasury stock, at cost - 331,193,968 and (27,463) (23,298)
305,533,606 shares
Retained earnings 37,365 36,180
Accumulated other comprehensive loss (13,420) (13,903)
Total shareholders' equity 6,264 8,665
Noncontrolling interests 43 125
Total equity 6,307 8,790
Total liabilities and equity $98,102 $99,198
The Boeing Company and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
Six months ended
June 30
(Dollars in millions) 2015 2014
Cash flows - operating activities:
Net earnings $2,446 $2,618
Adjustments to reconcile net earnings to net cash
provided by operating activities:
Non-cash items -
Share-based plans expense 94 101
Depreciation and amortization 912 900
Investment/asset impairment charges, net 74 36
Customer financing valuation benefit (5) (26)
Gain on dispositions, net (1) (2)
Other charges and credits, net 140 87
Excess tax benefits from share-based payment (124) (97)
arrangements
Changes in assets and liabilities -
Accounts receivable (313) (1,286)
Inventories, net of advances and progress billings (2,395) (3,402)
Accounts payable 888 1,783
Accrued liabilities (177) (913)
Advances and billings in excess of related costs 195 1,217
Income taxes receivable, payable and deferred 482 394
Other long-term liabilities (17) (88)
Pension and other postretirement plans 1,244 1,118
Customer financing, net 19 466
Other (77) 15
Net cash provided by operating activities 3,385 2,921
Cash flows - investing activities:
Property, plant and equipment additions (1,266) (946)
Property, plant and equipment reductions 20 17
Acquisitions, net of cash acquired (23) (163)
Contributions to investments (1,205) (5,657)
Proceeds from investments 2,040 8,030
Other 22
Net cash (used)/provided by investing activities (412) 1,281
Cash flows - financing activities:
New borrowings 761 85
Debt repayments (846) (854)
Repayments of distribution rights and other asset (184)
financing
Stock options exercised 276 261
Excess tax benefits from share-based payment 124 97
arrangements
Employee taxes on certain share-based payment (90) (88)
arrangements
Common shares repurchased (4,501) (3,998)
Dividends paid (1,264) (1,071)
Other (12)
Net cash used by financing activities (5,540) (5,764)
Effect of exchange rate changes on cash and cash (9) 7
equivalents
Net decrease in cash and cash equivalents (2,576) (1,555)
Cash and cash equivalents at beginning of year 11,733 9,088
Cash and cash equivalents at end of period $9,157 $7,533
The Boeing Company and Subsidiaries
Summary of Business Segment Data
(Unaudited)
Six months ended Three months ended
June 30 June 30
(Dollars in millions) 2015 2014 2015 2014
Revenues:
Commercial Airplanes $32,258 $27,041 $16,877 $14,304
Defense, Space & Security:
Boeing Military Aircraft 6,232 6,975 3,488 3,520
Network & Space Systems 3,670 3,796 1,938 1,920
Global Services & Support 4,351 4,609 2,118 2,307
Total Defense, Space & 14,253 15,380 7,544 7,747
Security
Boeing Capital 201 172 115 90
Unallocated items, (20) (83) 7 (96)
eliminations and other
Total revenues $46,692 $42,510 $24,543 $22,045
Earnings from operations:
Commercial Airplanes $2,823 $3,052 $1,206 $1,550
Defense, Space & Security:
Boeing Military Aircraft 384 496 123 164
Network & Space Systems 318 318 151 150
Global Services & Support 587 546 272 268
Total Defense, Space & 1,289 1,360 546 582
Security
Boeing Capital 31 77 11 33
Unallocated items, (441) (1,160) (80) (378)
eliminations and other
Earnings from operations 3,702 3,329 1,683 1,787
Other income, net 3 20 15 11
Interest and debt expense (136) (173) (75) (81)
Earnings before income 3,569 3,176 1,623 1,717
taxes
Income tax expense (1,123) (558) (513) (64)
Net earnings $2,446 $2,618 $1,110 $1,653
Research and development
expense, net:
Commercial Airplanes $1,097 $970 $554 $441
Defense, Space & Security 474 577 250 297
Other (2) (5) (4) (5)
Total research and $1,569 $1,542 $800 $733
development expense, net
Unallocated items,
eliminations and other:
Share-based plans ($37) ($44) ($16) ($20)
Deferred compensation (48) (19) 10 (26)
Amortization of previously (49) (36) (20) (18)
capitalized interest
Eliminations and other (164) (304) (24) (110)
unallocated items
Sub-total (included in core (298) (403) (50) (174)
operating earnings)
Pension (209) (804) (57) (228)
Postretirement 66 47 27 24
Total unallocated items, ($441) ($1,160) ($80) ($378)
eliminations and other
The Boeing Company and Subsidiaries
Operating and Financial Data
(Unaudited)
Deliveries Six months ended Three months ended
June 30 June 30
Commercial Airplanes 2015 2014 2015 2014
737 249 239 128 124
747 9 6 5 2
767 9 1 4 1
777 50 48 26 24
787 64 48 34 30
Total 381 342 197 181
Note: Deliveries under operating lease are identified by
parentheses.
Defense, Space & Security
Boeing Military Aircraft
AH-64 Apache (New) 12 19 6 9
AH-64 Apache 23 25 13 11
(Remanufactured)
C-17 Globemaster III 3 5 2 2
CH-47 Chinook (New) 21 32 15 15
CH-47 Chinook (Renewed) 5 1
F-15 Models 5 8 4 4
F/A-18 Models 20 23 9 12
P-8 Models 6 2 4 2
Global Services & Support
AEW&C 2 1
C-40A 1
Network & Space Systems
Commercial and Civil 1 2 1 2
Satellites
Military Satellites 1 1
Contractual backlog (Dollars June March 31 December
in billions) 30 2015 31
2015 2014
Commercial Airplanes $430.8 $435.0 $440.1
Defense, Space & Security:
Boeing Military Aircraft 22.8 21.3 21.1
Network & Space Systems 9.1 9.4 8.9
Global Services & Support 16.5 16.9 16.9
Total Defense, Space & 48.4 47.6 46.9
Security
Total contractual backlog $479.2 $482.6 $487.0
Unobligated backlog $9.6 $12.5 $15.3
Total backlog $488.8 $495.1 $502.3
Workforce 163,500 163,100 165,500
The Boeing Company and Subsidiaries
Reconciliation of Non-GAAP Measures
Core Operating Earnings, Core Operating Margin and Core Earnings Per Share
(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 6 of this release for
additional information on the use of these non-GAAP financial measures.
Second Quarter First Half Guidance
2015 2014 2015 2014 2015
Revenues $24,543 $22,045 $46,692 $42,510
GAAP Earnings From $1,683 $1,787 $3,702 $3,329
Operations
GAAP Operating 6.9% 8.1% 7.9% 7.8%
Margin
Unallocated Pension/ $30 $204 $143 $757 $110
Postretirement
Expense
Core Operating $1,713 $1,991 $3,845 $4,086
Earnings (non-GAAP)
Core Operating 7.0 9.0% 8.2% 9.6%
Margin (non-GAAP)
Increase/(Decrease) (6%) 11%
in GAAP Earnings
From Operations
Increase/(Decrease) (14%) (6%)
in Core Operating
Earnings (non-GAAP)
GAAP Diluted $1.59 $2.24 $3.46 $3.50 $7.60 - $7.80
Earnings Per Share
Unallocated Pension/ $0.03 $0.18 $0.13 $0.66 $0.10
Postretirement
Expense1
Core Earnings Per $1.62 $2.42 $3.59 $4.16 $7.70 - $7.90
Share (non-GAAP)
Weighted Average 698.9 740.1 706.6 747.4 695 - 700
Diluted Shares
(millions)
Increase/(Decrease) (29%) (1%)
in GAAP Earnings Per
Share
Increase/(Decrease) (33%) (14%)
in Core Earnings Per
Share (non-GAAP)
1 Earnings per share impact is presented net of the
federal statutory tax rate of 35.0 percent.
END
Boeing (LSE:BOE)
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