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 /PRNewswire/ --

Table 1. Summary Financial Results


Second Quarter



First Half



(Dollars in Millions, except per share data)


2015


2014


Change

2015


2014


Change














Revenues



$24,543



$22,045


11%



$46,692



$42,510


10%














Non-GAAP*













Core Operating Earnings



$1,713



$1,991


(14)%



$3,845



$4,086


(6)%

Core Operating Margin


7.0%


9.0%


(2.0) Pts


8.2%


9.6%


(1.4) Pts

Core Earnings Per Share



$1.62



$2.42


(33)%



$3.59



$4.16


(14)%

GAAP













Earnings From Operations



$1,683



$1,787


(6)%



$3,702



$3,329


11%

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 Share



$1.59



$2.24


(29)%



$3.46



$3.50


(1)%

Operating Cash Flow



$3,297



$1,809


82%



$3,385



$2,921


16%

* 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 & Equipment



($692)




($449)




($1,266)




($946)


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



1 Marketable securities consists primarily of time deposits due within one year classified as "short-term investments."

Cash and investments in marketable securities totaled $9.6 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 Airplanes


Second Quarter




First Half



(Dollars in Millions)


2015


2014


Change


2015


2014


Change















Commercial Airplanes Deliveries


197


181


9%


381


342


11%














Revenues



$16,877



$14,304


18%



$32,258



$27,041


19%

Earnings from Operations



$1,206



$1,550


(22)%



$2,823



$3,052


(8) %

Operating Margin



7.1%



10.8%


(3.7) Pts



8.8%



11.3%


(2.5) 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 & Security


Second Quarter




First Half



(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 Operations



$546



$582


(6)%



$1,289



$1,360


(5)%

Operating Margin


7.2%


7.5%


(0.3) Pts


9.0%


8.8%


0.2 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 Outlook

Current


Prior

(Dollars in Billions, except per share data)

Guidance


Guidance





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
June 30


Three months ended
June 30

(Dollars in millions, except per share data)

2015



2014



2015



2014


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 expense

(33)



(35)



(17)



(17)


Total costs and expenses

(39,846)



(35,966)



(21,350)



(18,670)



6,846



6,544



3,193



3,375


Income from operating investments, net

129



120



50



61


General and administrative expense

(1,705)



(1,795)



(760)



(918)


Research and development expense, net

(1,569)



(1,542)



(800)



(733)


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 shares (millions)

706.6



747.4



698.9



740.1


 

The Boeing Company and Subsidiaries

Consolidated Statements of Financial Position

(Unaudited) 









(Dollars in millions, except per share data)

June 30
2015



December 31
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 depreciation of $15,997 and $15,689

11,338



11,007


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 $419 and $479

1,374



1,317


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 debt

112



929


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 shares authorized; 1,012,261,159 shares issued

5,061



5,061


Additional paid-in capital

4,721



4,625


Treasury stock, at cost – 331,193,968 and 305,533,606 shares

(27,463)



(23,298)


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 arrangements

(124)



(97)


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 financing




(184)


Stock options exercised

276



261


Excess tax benefits from share-based payment arrangements

124



97


Employee taxes on certain share-based payment arrangements

(90)



(88)


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 equivalents

(9)



7


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
June 30


Three months ended
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 & Security

14,253



15,380



7,544



7,747


Boeing Capital

201



172



115



90


Unallocated items, eliminations and other

(20)



(83)



7



(96)


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 & Security

1,289



1,360



546



582


Boeing Capital

31



77



11



33


Unallocated items, eliminations and other

(441)



(1,160)



(80)



(378)


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










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 development expense, net


$1,569




$1,542




$800




$733










Unallocated items, eliminations and other:








Share-based plans


($37)




($44)




($16)




($20)


Deferred compensation

(48)



(19)



10



(26)


Amortization of previously capitalized interest

(49)



(36)



(20)



(18)


Eliminations and other unallocated items

(164)



(304)



(24)



(110)


Sub-total (included in core operating earnings)

(298)



(403)



(50)



(174)


Pension

(209)



(804)



(57)



(228)


Postretirement

66



47



27



24


Total unallocated items, eliminations and other


($441)




($1,160)




($80)




($378)


 

The Boeing Company and Subsidiaries

Operating and Financial Data

(Unaudited)















Deliveries


Six months ended
June 30


Three months ended 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 (Remanufactured)


23



25



13



11



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 Satellites


1



2



1



2



Military Satellites


1





1































Contractual backlog (Dollars in billions)


June 30
2015



March 31
2015



December 31
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 & Security


48.4



47.6



46.9



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 Operations


$1,683



$1,787



$3,702



$3,329



GAAP Operating Margin

6.9%


8.1%


7.9%


7.8%













Unallocated Pension/Postretirement Expense


$30



$204



$143



$757



$110


Core Operating Earnings (non-GAAP)


$1,713



$1,991



$3,845



$4,086



Core Operating Margin (non-GAAP)

7.0


9.0%


8.2%


9.6%














Increase/(Decrease) in GAAP Earnings From Operations

(6%)




11%





Increase/(Decrease) in Core Operating Earnings (non-GAAP)

(14%)




(6%)
















GAAP Diluted Earnings Per Share


$1.59



$2.24



$3.46



$3.50


 $7.60 - $7.80


Unallocated Pension/Postretirement Expense1


$0.03



$0.18



$0.13



$0.66



$0.10


Core Earnings Per Share (non-GAAP)


$1.62



$2.42



$3.59



$4.16


$7.70 - $7.90












Weighted Average Diluted Shares (millions)

698.9


740.1


706.6


747.4


695 - 700


Increase/(Decrease) in GAAP Earnings Per Share

(29%)




(1%)






Increase/(Decrease) in Core Earnings Per Share (non-GAAP)

(33%)




(14%)







1 Earnings per share impact is presented net of the federal statutory tax rate of 35.0 percent.

 

SOURCE Boeing

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