TIDMBOE
Boeing Reports Third-Quarter Results and Raises Full Year Guidance
CHICAGO, Oct. 26, 2016 --
* Strong operating cash flow of $3.2 billion; repurchased 7.6 million shares
for $1.0 billion
* GAAP EPS of $3.60 and core EPS (non-GAAP)* of $3.51 on solid execution and
tax items
* Revenue of $23.9 billion on timing of aircraft deliveries
* Backlog remains robust at $462 billion with more than 5,600 commercial
airplane orders
* Cash and marketable securities of $9.7 billion provide strong liquidity
* 2016 revenue guidance increased $500 million on higher deliveries
* 2016 GAAP EPS and core EPS (non-GAAP)* guidance increased $0.70for
additionaltaxadjustment
Table 1. Summary Third Quarter Nine months
Financial
Results
(Dollars in 2016 2015 Change 2016 2015 Change
Millions, except
per share data)
Revenues $23,898 $25,849 (8)% $71,285 $72,541 (2)%
GAAP
Earnings From $2,282 $2,580 (12)% $3,651 $6,282 (42)%
Operations
Operating Margin 9.5% 10.0% (0.5) Pts 5.1% 8.7% (3.6) Pts
Net Earnings $2,279 $1,704 34% $3,264 $4,150 (21)%
Earnings Per $3.60 $2.47 46% $5.04 $5.92 (15)%
Share
Operating Cash $3,202 $2,859 12% $7,667 $6,244 23%
Flow
Non-GAAP*
Core Operating $2,194 $2,637 (17)% $3,400 $6,482 (48)%
Earnings
Core Operating 9.2% 10.2% (1.0) Pts 4.8% 8.9% (4.1) Pts
Margin
Core Earnings $3.51 $2.52 39% $4.79 $6.11 (22)%
Per Share
* 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 third-quarter GAAP earnings per share of
$3.60 and core earnings per share (non-GAAP)* of $3.51 reflecting overall solid
execution on production programs and services, favorable tax items ($0.98 per
share), and timing of aircraft deliveries (Table 1).
Revenue guidance has been increased $500 million to between $93.5 and $95.5
billion on higher commercial deliveries. GAAP earnings per share guidance for
2016 has been increased to between $7.10 and $7.30 from $6.40 and $6.60 and
core earnings per share (non-GAAP)* guidance has been increased to between
$6.80 and $7.00 from $6.10 and $6.30 to reflect a favorable $0.70 per share tax
basis adjustment. The third quarter favorable tax adjustment for a 2011-2012
tax settlement of $0.28 per share was previously announced in the second
quarter of 2016 and was reflected in prior guidance.
"Solid operating performance across our commercial and defense and space
businesses in the third quarter again generated strong cash flow for Boeing,
which continues to fuel investments in our future and enable us to deliver
compelling returns to our shareholders," said Chairman, President and Chief
Executive Officer Dennis Muilenburg. "We also captured key orders, reinforcing
the strength of our large and diverse order backlog."
"We achieved key milestones on the 737 MAX, 787-10 and other development
programs, including the first KC-46 production contracts. Our teams remain
focused on completing these development efforts and delivering better
capabilities and economics to customers around the world."
"We remain on track to deliver on our full-year commitments. At the same time,
we are positioning Boeing for further growth through our intense focus on
productivity, quality and safety across the company."
Table 2. Cash Flow Third Quarter Nine months
(Millions) 2016 2015 2016 2015
Operating Cash Flow $3,202 $2,859 $7,667 $6,244
Less Additions to Property, Plant & ($595) ($561) ($2,014) ($1,827)
Equipment
Free Cash Flow* $2,607 $2,298 $5,653 $4,417
* Non-GAAP measures. Complete definitions of Boeing's non-GAAP measures are on
page 6, "Non-GAAP Measures Disclosures."
Operating cash flow in the quarter was $3.2 billion, reflecting solid operating
performance (Table 2). During the quarter, the company repurchased 7.6 million
shares for $1.0 billion, leaving $7.5 billion remaining under the current
repurchase authorization. The company also paid $0.7 billion in dividends in
the quarter, reflecting an approximately 20 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) Q3 16 Q2 16
Cash $9.0 $8.6
Marketable Securities1 $0.7 $0.7
Total $9.7 $9.3
Debt Balances:
The Boeing Company, net of intercompany loans to BCC $8.1 $8.7
Boeing Capital, including intercompany loans $2.4 $2.3
Total Consolidated Debt $10.5 $11.0
1 Marketable securities consists primarily of time deposits due within one year
classified as "short-term investments."
Cash and investments in marketable securities totaled $9.7 billion, up from
$9.3 billion at the beginning of the quarter. Debt was $10.5 billion, down from
the beginning of the quarter, due to repayment of debt (Table 3).
Total company backlog at quarter-end was $462 billion, down from $472 billion
at the beginning of the quarter, and included net orders for the quarter of $15
billion.
Segment Results
Commercial Airplanes
Table 4. Third Quarter Nine months
Commercial
Airplanes
(Dollars in 2016 2015 Change 2016 2015 Change
Millions)
Commercial 188 199 (6)% 563 580 (3)%
Airplanes
Deliveries
Revenues $16,973 $17,692 (4)% $48,828 $49,950 (2)%
Earnings from $1,597 $1,768 (10)% $1,657 $4,591 (64)%
Operations
Operating 9.4% 10.0% (0.6) Pts 3.4% 9.2% (5.8) Pts
Margin
Commercial Airplanes third-quarter revenue decreased to $17.0 billion on lower
planned delivery volume (Table 4). Third-quarter operating margin was 9.4
percent, reflecting delivery volume and mix, partially offset by lower period
costs.
During the quarter, we began production of the 500th 787 Dreamliner, completed
service ready validation of the 737 MAX 8, and began production of the 737 MAX
9. The 737 program has captured more than 3,300 orders for the 737 MAX since
launch and the company remains on track to raise the production rate to 47 per
month in the third quarter of 2017. During the quarter, we continued to grow
our services business through an agreement with Japan Airlines to provide spare
parts solutions.
Commercial Airplanes booked 107 net orders during the quarter. Backlog remains
strong with more than 5,600 airplanes valued at $409 billion.
Defense, Space & Security
Table 5. Defense, Third Quarter Nine months
Space & Security
(Dollars in 2016 2015 Change 2016 2015 Change
Millions)
Revenues1
Boeing Military $3,260 $4,037 (19)% $9,898 $10,237 (3)%
Aircraft
Network & Space $1,701 $2,127 (20)% $5,246 $5,797 (10)%
Systems
Global Services & $2,547 $2,186 17% $7,494 $6,569 14%
Support
Total BDS $7,508 $8,350 (10)% $22,638 $22,603 -
Revenues
Earnings from
Operations1
Boeing Military $434 $494 (12)% $943 $874 8%
Aircraft
Network & Space $35 $245 (86)% $336 $563 (40)%
Systems
Global Services & $315 $283 11% $920 $874 5%
Support
Total BDS $784 $1,022 (23)% $2,199 $2,311 (5)%
Earnings from
Operations
Operating Margin 10.4% 12.2% (1.8) Pts 9.7% 10.2% (0.5) Pts
1 During the first quarter of 2016, certain programs were realigned between
Boeing Military Aircraft and Global Services & Support.
Defense, Space & Security's third-quarter revenue was $7.5 billion.
Third-quarter operating margin was 10.4 percent, reflecting solid execution and
the impact of the Commercial Crew program (Table 5).
Boeing Military Aircraft (BMA) third-quarter revenue was $3.3 billion,
reflecting fewer C-17 deliveries and volume on F-15. Operating margin increased
to 13.3 percent, reflecting program mix. During the quarter, BMA was awarded a
contract from the U.S. Air Force for low-rate initial production of 19 KC-46
Tanker aircraft and received an agreement from the U.K. Ministry of Defence to
purchase 50 Apache attack helicopters and nine P-8 Poseidon aircraft.
Network & Space Systems (N&SS) third-quarter revenue decreased to $1.7 billion
with an operating margin of 2.1 percent, primarily reflecting the charge on the
Commercial Crew development program. The charge includes a $124 million
reversal of cumulative pre-tax earnings recorded in prior periods and a $38
million pre-tax reach-forward loss, and was largely driven by delays in
completion of engineering and supply chain activities. During the quarter, N&SS
announced an award for a 702MP satellite with a new digital payload offering
twice the capacity of previous designs.
Global Services & Support (GS&S) third-quarter revenue increased to $2.5
billion, reflecting higher volume in Aircraft Modernization & Sustainment and
Training Systems & Government Services. Operating margin was 12.4 percent
largely reflecting contract mix. During the quarter, GS&S was awarded contracts
from the Defense Logistics Agency for F/A-18 spare parts.
Backlog at Defense, Space & Security was $53 billion, of which 38 percent
represents orders from international customers.
Additional Financial Information
Table 6. Additional Financial Information Third Quarter Nine months
(Dollars in Millions) 2016 2015 2016 2015
Revenues
Boeing Capital $63 $114 $211 $315
Unallocated items, eliminations and other ($646) ($307) ($392) ($327)
Earnings from Operations
Boeing Capital $13 $10 $36 $41
Unallocated pension/postretirement $88 ($57) $251 ($200)
Other unallocated items and eliminations ($200) ($163) ($492) ($461)
Other income/(loss), net $2 ($26) $41 ($23)
Interest and debt expense ($81) ($67) ($227) ($203)
Effective tax rate (3.4)% 31.5% 5.8% 31.5%
At quarter-end, Boeing Capital's net portfolio balance was $3.7 billion, up
from the beginning of the quarter. Total pension expense for the third quarter
was $453 million, down from $529 million in the same period of the prior year.
Other unallocated items and eliminations revenue decreased from the same period
in the prior year primarily due to the elimination of intercompany revenue for
three aircraft delivered under operating leases. The effective tax rate for the
third quarter decreased from the same period in the prior year primarily due to
the favorable $440 million tax basis adjustment and the previously announced
$177 million for the 2011-2012 tax settlement.
Outlook
The company's 2016 updated financial and delivery guidance (Table 7) reflects
higher commercial deliveries and the impact of the tax basis adjustment.
Table 7. 2016 Financial Outlook Current Prior
(Dollars in Billions, except per share data) Guidance Guidance
The Boeing Company
Revenue $93.5 - 95.5 $93.0 - 95.0
GAAP Earnings Per Share $7.10 - 7.30 $6.40 - 6.60
Core Earnings Per Share* $6.80 - 7.00 $6.10 - 6.30
Operating Cash Flow $10.0 $10.0
Commercial Airplanes
Deliveries 745 - 750 740 - 745
Revenue $64.5 - 65.5 $64.0 - 65.0
Operating Margin 4.5% - 5.0 4.5% - 5.0
Defense, Space & Security
Revenue
Boeing Military Aircraft $12.4 $12.3
Network & Space Systems $7.0 $7.3
Global Services & Support $9.6 $9.4
Total BDS Revenue $28.5 - 29.5 $28.5 - 29.5
Operating Margin
Boeing Military Aircraft 9.5% 9.5%
Network & Space Systems 7.5% 9.0%
Global Services & Support 12.5% 12.0%
Total BDS Operating Margin >10.0% >10.0%
Boeing Capital
Portfolio Size Stable Stable
Revenue $0.3 $0.3
Pre-Tax Earnings $0.05 $0.05
Research & Development $4.8 $4.8
Capital Expenditures $2.8 $2.8
Pension Expense 1 $2.1 $2.1
Effective Tax Rate 14.0% 23.0%
1 Approximately ($0.1) billion is expected to be recorded in unallocated items
and eliminations
* 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. Pension costs, comprising service and
prior service costs computed in accordance with Generally Accepted Accounting
Principles in the United States of America (GAAP) are allocated to Commercial
Airplanes. Pension costs allocated to BDS segments 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 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 Ben Hackman (312) 544-2140
Communications: Bernard Choi (312) 544-2002
The Boeing Company and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
Nine months ended Three months ended
September 30 September 30
(Dollars in millions, except per 2016 2015 2016 2015
share data)
Sales of products $63,563 $64,408 $21,494 $23,000
Sales of services 7,722 8,133 2,404 2,849
Total revenues 71,285 72,541 23,898 25,849
Cost of products (55,117) (55,020) (17,907) (19,393)
Cost of services (6,163) (6,377) (1,983) (2,191)
Boeing Capital interest expense (46) (49) (14) (16)
Total costs and expenses (61,326) (61,446) (19,904) (21,600)
9,959 11,095 3,994 4,249
Income from operating investments, 220 207 69 78
net
General and administrative expense (2,617) (2,594) (923) (889)
Research and development expense, net (3,901) (2,426) (857) (857)
(Loss)/gain on dispositions, net (10) (1) (1)
Earnings from operations 3,651 6,282 2,282 2,580
Other income/(loss), net 41 (23) 2 (26)
Interest and debt expense (227) (203) (81) (67)
Earnings before income taxes 3,465 6,056 2,203 2,487
Income tax (expense)/benefit (201) (1,906) 76 (783)
Net earnings $3,264 $4,150 $2,279 $1,704
Basic earnings per share $5.09 $5.99 $3.64 $2.50
Diluted earnings per share $5.04 $5.92 $3.60 $2.47
Cash dividends paid per share $3.27 $2.73 $1.09 $0.91
Weighted average diluted shares 647.9 700.9 632.7 689.0
(millions)
The Boeing Company and Subsidiaries
Consolidated Statements of Financial Position
(Unaudited)
(Dollars in millions, except per share data) September 30 December 31
2016 2015
Assets
Cash and cash equivalents $8,986 $11,302
Short-term and other investments 682 750
Accounts receivable, net 9,524 8,713
Current portion of customer financing, net 365 212
Inventories, net of advances and progress billings 42,680 47,257
Total current assets 62,237 68,234
Customer financing, net 3,401 3,358
Property, plant and equipment, net of accumulated 12,713 12,076
depreciation of $16,752 and $16,286
Goodwill 5,128 5,126
Acquired intangible assets, net 2,488 2,657
Deferred income taxes 265 265
Investments 1,303 1,284
Other assets, net of accumulated amortization of 1,415 1,408
$470 and $451
Total assets $88,950 $94,408
Liabilities and equity
Accounts payable $11,968 $10,800
Accrued liabilities 13,243 14,014
Advances and billings in excess of related costs 22,646 24,364
Short-term debt and current portion of long-term 632 1,234
debt
Total current liabilities 48,489 50,412
Deferred income taxes 2,211 2,392
Accrued retiree health care 6,544 6,616
Accrued pension plan liability, net 18,003 17,783
Other long-term liabilities 1,729 2,078
Long-term debt 9,824 8,730
Shareholders' equity:
Common stock, par value $5.00 - 1,200,000,000 shares 5,061 5,061
authorized;
1,012,261,159 shares issued
Additional paid-in capital 4,808 4,834
Treasury stock, at cost - 393,301,648 and (35,763) (29,568)
345,637,354 shares
Retained earnings 40,641 38,756
Accumulated other comprehensive loss (12,658) (12,748)
Total shareholders' equity 2,089 6,335
Noncontrolling interests 61 62
Total equity 2,150 6,397
Total liabilities and equity $88,950 $94,408
The Boeing Company and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
Nine months ended
September 30
(Dollars in millions) 2016 2015
Cash flows - operating activities:
Net earnings $3,264 $4,150
Adjustments to reconcile net earnings to net cash provided by
operating activities:
Non-cash items -
Share-based plans expense 144 141
Depreciation and amortization 1,364 1,349
Investment/asset impairment charges, net 61 124
Customer financing valuation benefit (5) (3)
Loss on dispositions, net 10
Other charges and credits, net 219 230
Excess tax benefits from share-based payment arrangements (139)
Changes in assets and liabilities -
Accounts receivable (517) (1,202)
Inventories, net of advances and progress billings 4,334 (2,186)
Accounts payable 1,366 1,058
Accrued liabilities 82 (196)
Advances and billings in excess of related costs (1,717) 270
Income taxes receivable, payable and deferred (725) 824
Other long-term liabilities (67) 40
Pension and other postretirement plans 144 1,837
Customer financing, net (195) 45
Other (95) (98)
Net cash provided by operating activities 7,667 6,244
Cash flows - investing activities:
Property, plant and equipment additions (2,014) (1,827)
Property, plant and equipment reductions 14 24
Acquisitions, net of cash acquired (23)
Contributions to investments (928) (1,341)
Proceeds from investments 956 2,169
Other 8 33
Net cash used by investing activities (1,964) (965)
Cash flows - financing activities:
New borrowings 1,323 761
Debt repayments (836) (864)
Stock options exercised 192 331
Excess tax benefits from share-based payment arrangements 139
Employee taxes on certain share-based payment arrangements (83) (93)
Common shares repurchased (6,501) (6,001)
Dividends paid (2,084) (1,882)
Other (24)
Net cash used by financing activities (8,013) (7,609)
Effect of exchange rate changes on cash and cash equivalents (6) (20)
Net decrease in cash and cash equivalents (2,316) (2,350)
Cash and cash equivalents at beginning of year 11,302 11,733
Cash and cash equivalents at end of period $8,986 $9,383
The Boeing Company and Subsidiaries
Summary of Business Segment Data
(Unaudited)
Nine months ended Three months ended
September 30 September 30
(Dollars in millions) 2016 2015 2016 2015
Revenues:
Commercial Airplanes $48,828 $49,950 $16,973 $17,692
Defense, Space & Security:
Boeing Military Aircraft 9,898 10,237 3,260 4,037
Network & Space Systems 5,246 5,797 1,701 2,127
Global Services & Support 7,494 6,569 2,547 2,186
Total Defense, Space & Security 22,638 22,603 7,508 8,350
Boeing Capital 211 315 63 114
Unallocated items, eliminations and (392) (327) (646) (307)
other
Total revenues $71,285 $72,541 $23,898 $25,849
Earnings from operations:
Commercial Airplanes $1,657 $4,591 $1,597 $1,768
Defense, Space & Security:
Boeing Military Aircraft 943 874 434 494
Network & Space Systems 336 563 35 245
Global Services & Support 920 874 315 283
Total Defense, Space & Security 2,199 2,311 784 1,022
Boeing Capital 36 41 13 10
Segment operating profit 3,892 6,943 2,394 2,800
Unallocated items, eliminations and (241) (661) (112) (220)
other
Earnings from operations 3,651 6,282 2,282 2,580
Other income/(loss), net 41 (23) 2 (26)
Interest and debt expense (227) (203) (81) (67)
Earnings before income taxes 3,465 6,056 2,203 2,487
Income tax (expense)/benefit (201) (1,906) 76 (783)
Net earnings $3,264 $4,150 $2,279 $1,704
Research and development expense, net:
Commercial Airplanes $3,194 $1,713 $646 $616
Defense, Space & Security 750 715 229 241
Other (43) (2) (18)
Total research and development expense, $3,901 $2,426 $857 $857
net
Unallocated items, eliminations and
other
Share-based plans ($50) ($57) ($9) ($20)
Deferred compensation (38) (10) (33) 38
Amortization of previously capitalized (71) (70) (23) (21)
interest
Eliminations and other unallocated (333) (324) (135) (160)
items
Sub-total (included in core operating (492) (461) (200) (163)
earnings)
Pension 129 (293) 50 (84)
Postretirement 122 93 38 27
Total unallocated items, eliminations ($241) ($661) ($112) ($220)
and other
The Boeing Company and Subsidiaries
Operating and Financial Data
(Unaudited)
Deliveries Nine months ended Three months ended
September 30 September 30
Commercial Airplanes 2016 2015 2016 2015
737 368 375 120 126
747 8 (3) 13 (1) 5 (3) 4 (1)
767 10 14 5 5
777 73 77 22 27
787 104 101 36 37
Total 563 580 188 199
Note: Deliveries under operating lease are identified by parentheses.
Defense, Space & Security
Boeing Military Aircraft
AH-64 Apache (New) 25 18 10 6
AH-64 Apache 27 33 9 10
(Remanufactured)
C-17 Globemaster III 4 5 2
CH-47 Chinook (New) 17 35 7 14
CH-47 Chinook (Renewed) 23 6 7 1
F-15 Models 11 8 4 3
F/A-18 Models 20 28 6 8
P-8 Models 13 10 4 4
Global Services & Support
C-40A 1
Network & Space Systems
Commercial and Civil 3 1 2
Satellites
Military Satellites 2 1 1
Contractual backlog September 30 December 31
(Dollars in billions) 2016 2015
Commercial Airplanes $408.8 $431.4
Defense, Space & Security:
Boeing Military 20.8 19.9
Aircraft
Network & Space 6.5 7.4
Systems
Global Services & 12.8 17.9
Support
Total Defense, Space & 40.1 45.2
Security
Total contractual backlog $448.9 $476.6
Unobligated backlog $13.1 $12.7
Total backlog $462.0 $489.3
Workforce 154,700 161,400
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 6 of this release
for additional information on the use of these non-GAAP financial measures.
(Dollars in millions, Third Quarter Nine months Guidance
except per share data)
2016 2015 2016 2015 2016
Revenues $23,898 $25,849 $71,285 $72,541
GAAP Earnings From $2,282 $2,580 $3,651 $6,282
Operations
Increase/(Decrease) in (12%) (42%)
GAAP Earnings From
Operations
GAAP Operating Margin 9.5% 10.0% 5.1% 8.7%
Unallocated Pension ($50) $84 ($129) $293
(Income)/Expense
Unallocated Other ($38) ($27) ($122) ($93)
Postretirement Benefit
Income
Unallocated Pension and ($88) $57 ($251) $200 ($300)
Other Postretirement
Benefit (Income)/Expense
Core Operating Earnings $2,194 $2,637 $3,400 $6,482
(non-GAAP)
Increase/(Decrease) in (17%) (48%)
Core Operating Earnings
(non-GAAP)
Core Operating Margin 9.2% 10.2% 4.8% 8.9%
(non-GAAP)
GAAP Diluted Earnings Per $3.60 $2.47 $5.04 $5.92 $7.10 - $7.30
Share
Unallocated Pension ($0.08) $0.12 ($0.20) $0.42
(Income)/Expense
Unallocated ($0.06) ($0.04) ($0.19) ($0.13) ($0.30)
Postretirement Benefit
(Income)/Expense
Provision for deferred $0.05 ($0.03) $0.14 ($0.10)
income taxes on
adjustments (1)
Core Earnings Per Share $3.51 $2.52 $4.79 $6.11 $6.80 - $7.00
(non-GAAP)
Weighted Average Diluted 632.7 689.0 647.9 700.9 645 - 650
Shares (millions)
Increase/(Decrease) in 46% (15%)
GAAP Earnings Per Share
Increase/(Decrease) in 39% (22%)
Core Earnings Per Share
(non-GAAP)
(1) The income tax impact is calculated using the tax rate in effect
for the non-GAAP adjustments.
SOURCE Boeing
END
(END) Dow Jones Newswires
October 26, 2016 07:30 ET (11:30 GMT)
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