Boeing Reports Strong Second-Quarter Results; Raises EPS and Cash Flow Guidance

CHICAGO, July 26, 2017 /PRNewswire/ --

  • GAAP EPS of $2.89 and core EPS (non-GAAP)* of $2.55 on solid execution across the company
  • Strong operating cash flow of $5.0 billion; repurchased 13.6 million shares for $2.5 billion
  • Revenue of $22.7 billion reflecting 226 commercial and defense aircraft deliveries and services
  • Backlog grew to $482 billion, including $27 billion of net orders during the quarter
  • Increased guidance for GAAP EPS $0.75 and core EPS (non-GAAP)* $0.60 on improved performance and tax
  • Raised operating cash flow guidance by $1.5 billion and lowered capital expenditures guidance by $300 million















Table 1. Summary Financial Results


Second Quarter

First Half

(Dollars in Millions, except per share data)


2017

2016

2017

2016







Revenues



$22,739



$24,755



$43,715



$47,387








GAAP






Earnings/(Loss) From Operations



$2,535



($419)



$4,559



$1,369


Operating Margin


11.1%


(1.7)%


10.4%


2.9%


Net Earnings/(Loss)



$1,761



($234)



$3,212



$985


Earnings/(Loss) Per Share



$2.89



($0.37)



$5.22



$1.51


Operating Cash Flow



$4,950



$3,190



$7,044



$4,465


Non-GAAP*






Core Operating Earnings/(Loss)



$2,212



($488)



$3,921



$1,206


Core Operating Margin


9.7%


(2.0)%


9.0%


2.5%


Core Earnings/(Loss) Per Share



$2.55



($0.44)



$4.55



$1.35



* 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 strong earnings and operating cash flow in the second quarter of 2017, driven by improved operating performance (Table 1). Second-quarter GAAP earnings per share increased to $2.89 and core earnings per share (non-GAAP)* increased to $2.55. Revenue was $22.7 billion, reflecting planned production rates and timing of commercial and defense aircraft deliveries. 

For the full year, GAAP earnings per share guidance increased to between $11.10 and $11.30 from $10.35 and $10.55 and core earnings per share (non-GAAP)* guidance increased to between $9.80 and $10.00 from $9.20 and $9.40, primarily driven by improved performance across the company and a lower-than-expected tax rate. Operating cash flow guidance increased by $1.5 billion to $12.25 billion on solid execution and a cash tax benefit from accelerating pension funding in the third quarter of 2017. Additionally, capital expenditures guidance decreased by $300 million to $2.0 billion.

"Our teams are delivering better performance in every segment of the business, which is reflected in our strong second-quarter results and improved 2017 outlook," said Chairman, President and Chief Executive Officer Dennis Muilenburg. "Our robust cash flow enabled us to return more value to shareholders, invest in future growth and in our people, including a plan to accelerate pension funding that also reduces risk and cyclicality in our business."

"In the second quarter, we added to our large and diverse order backlog with key wins in commercial airplanes, defense, space and services, while achieving important milestones such as delivering the first 737 MAX airplane, flying the second production-ready T-X trainer aircraft, and conducting a successful Ground-based Midcourse Defense intercept test."

"As we look to the second half of the year, our teams are focused on accelerating productivity, quality and safety improvements across the company, while completing key development efforts and delivering better capabilities and economics to our customers."
















Table 2. Cash Flow


Second Quarter

First Half

(Millions)


2017

2016

2017

2016

Operating Cash Flow



$4,950



$3,190



$7,044



$4,465


Less Additions to Property, Plant & Equipment



($439)



($671)



($905)



($1,419)


Free Cash Flow*



$4,511



$2,519



$6,139



$3,046



* 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 of $5.0 billion was driven by strong operating performance and favorable timing of receipts and expenditures (Table 2). During the quarter, the company repurchased 13.6 million shares for $2.5 billion, leaving $9.0 billion remaining under the current repurchase authorization. The company also paid $0.9 billion in dividends in the quarter, reflecting a 30 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 17

Q1 17

Cash



$8.7



$8.2


Marketable Securities1



$1.6



$1.0


Total



$10.3



$9.2


Debt Balances:




The Boeing Company, net of intercompany loans to BCC



$7.8



$7.7


Boeing Capital, including intercompany loans



$3.0



$3.1


Total Consolidated Debt



$10.8



$10.8



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

Cash and investments in marketable securities totaled $10.3 billion, up from $9.2 billion at the beginning of the quarter (Table 3). Debt was $10.8 billion, unchanged from the beginning of the quarter.

Total company backlog at quarter-end was $482 billion, up from $480 billion at the beginning of the quarter, and included net orders for the quarter of $27 billion.

Segment Results

Commercial Airplanes





















Table 4. Commercial Airplanes


Second Quarter


First Half



(Dollars in Millions)


2017

2016

Change

2017

2016


Change










Commercial Airplanes Deliveries


183


199


(8)%


352


375



(6)%











Revenues



$15,713



$17,456


(10)%



$30,018



$31,855



(6)%


Earnings/(Loss) from Operations



$1,567



($973)


NM



$2,782



$60



NM


Operating Margin


10.0%


(5.6)%


15.6 Pts


9.3%


0.2%



9.1 Pts


Commercial Airplanes second-quarter revenue was $15.7 billion on planned production rates and timing of deliveries (Table 4). Second-quarter operating margin was 10.0 percent, reflecting solid execution.

During the quarter, Commercial Airplanes delivered the first 737 MAX 8 aircraft and announced the launch of the 737 MAX 10. Demand continues to be healthy with 571 incremental orders and commitments announced at the Paris Air Show, including 56 for widebody aircraft and 361 for the launch of the 737 MAX 10. Also at the Paris Air Show, a number of commercial service agreements were announced that provide further growth opportunity for Boeing Global Services.

Commercial Airplanes booked 183 net orders during the quarter. Backlog remains robust with more than 5,700 airplanes valued at $424 billion.

Defense, Space & Security





















Table 5. Defense, Space & Security


Second Quarter


First Half



(Dollars in Millions)


2017

2016

Change

2017

2016


Change

Revenues









Boeing Military Aircraft



$2,904



$2,979


(3)%



$5,540



$6,638



(17)%


Network & Space Systems



$1,674



$1,810


(8)%



$3,238



$3,545



(9)%


Global Services & Support



$2,308



$2,385


(3)%



$4,640



$4,947



(6)%


Total BDS Revenues



$6,886



$7,174


(4)%



$13,418



$15,130



(11)%


Earnings from Operations









Boeing Military Aircraft



$382



$175


NM



$703



$509



NM


Network & Space Systems



$152



$153


(1)%



$250



$301



(17)%


Global Services & Support



$356



$265


34%



$674



$605



11%


Total BDS Earnings from Operations



$890



$593


50%



$1,627



$1,415



15%


Operating Margin


12.9%


8.3%


4.6 Pts


12.1%


9.4%



2.7 Pts


Defense, Space & Security second-quarter revenue was $6.9 billion (Table 5). Second-quarter operating margin increased to 12.9 percent, reflecting increased productivity in all three segments.

Boeing Military Aircraft (BMA) second-quarter revenue was $2.9 billion, reflecting lower planned C-17 deliveries, and operating margin increased to 13.2 percent on improved performance. During the quarter, BMA was awarded a contract for the remanufacture of 38 AH-64E Apache helicopters for the United Kingdom, and the second production-ready T-X aircraft completed first flight.

Network & Space Systems (N&SS) second-quarter revenue was $1.7 billion, reflecting timing of satellite volume. Operating margin increased to 9.1 percent reflecting improved performance. During the quarter, N&SS was awarded a contract from the Missile Defense Agency for Redesigned Kill Vehicle Development.

Global Services & Support (GS&S) second-quarter revenue was $2.3 billion, reflecting timing of contracts. Operating margin increased to 15.4 percent reflecting strong performance. During the quarter, GS&S was awarded a contract from the Defense Logistics Agency to support the F-15 fleet, which will be carried out by Boeing Global Services.

Backlog at Defense, Space & Security was $58 billion, of which 37 percent represents orders from international customers.

Additional Financial Information
















Table 6. Additional Financial Information


Second Quarter

First Half

(Dollars in Millions)


2017

2016

2017

2016

Revenues






Boeing Capital



$72



$84



$164



$148


Unallocated items, eliminations and other



$68



$41



$115



$254


Earnings from Operations






Boeing Capital



$25



$18



$64



$23


Unallocated pension/postretirement



$323



$69



$638



$163


Other unallocated items and eliminations



($270)



($126)



($552)



($292)


Other income, net



$27



$13



$49



$39


Interest and debt expense



($93)



($73)



($180)



($146)


Effective tax rate


28.7%


51.1%


27.5%


21.9%


At quarter-end, Boeing Capital's net portfolio balance was $3.9 billion. Total pension expense for the second quarter was $100 million, down from $463 million in the same period of the prior year. Other unallocated items and eliminations earnings decreased primarily due to timing of expense allocations. The effective tax rate for the second quarter was 28.7 percent reflecting higher-than-expected tax benefits related to share-based compensation.

Accelerated Pension Funding

In addition to the $500 million pension contribution originally planned for 2017, the company will accelerate approximately four years of pension funding by making a discretionary contribution of $3.5 billion of Boeing common shares in the third quarter of this year. Subsequently, the company expects to utilize its strong cash position and increase its 2017 planned share repurchases by $3.5 billion to a total of approximately $10 billion for the full year. It is expected that this contribution will nearly eliminate all future mandatory pension funding through 2021 based on existing assumptions for asset returns and discount rates. "Over the past several years, we have taken meaningful actions to retire risk and reduce cyclicality, and today's actions are another step forward," said Greg Smith, Chief Financial Officer and Executive Vice President of Enterprise Performance & Strategy. 

The company expects approximately $700 million cash tax savings from the accelerated pension funding in 2017, which is reflected in the updated cash flow guidance. Boeing continues to anticipate cash flows to grow annually through the end of the decade and remains committed to returning free cash flow to shareholders.

Outlook

The company's 2017 updated guidance (Table 7) reflects the impact of improved performance across the company and a lower-than-expected tax rate.






Table 7. 2017 Financial Outlook

Current


Prior

(Dollars in Billions, except per share data)

Guidance


Guidance





The Boeing Company




Revenue

$90.5 - 92.5


$90.5 - 92.5





GAAP Earnings Per Share

$11.10 - 11.30


$10.35 - 10.55

Core Earnings Per Share*

$9.80 - 10.00


$9.20 - 9.40





Operating Cash Flow

~$12.25


~$10.75





Commercial Airplanes




Deliveries

760 - 765


760 - 765

Revenue

$62.5 - 63.5


$62.5 - 63.5

Operating Margin

>10.0%


9.5% - 10.0





Defense, Space & Security




Revenue




Boeing Military Aircraft

~$11.5


~$11.5

Network & Space Systems

~$7.0


~$7.0

Global Services & Support

~$10.0


~$10.0





Total BDS Revenue

$28.0 - 29.0


$28.0 - 29.0





Operating Margin




Boeing Military Aircraft

>12.0%


~12.0%

Network & Space Systems

~8.0%


~9.0%

Global Services & Support

>13.5%


>12.5%





Total BDS Operating Margin

>11.5%


~11.5%





Boeing Capital




Portfolio Size

Stable


Stable

Revenue

~$0.3


~$0.3

Pre-Tax Earnings

~$0.08


~$0.05





Research & Development

~ $3.6


~ $3.6

Capital Expenditures

~ $2.0


~ $2.3

Pension Expense 1

~ $0.6


~ $0.7

Effective Tax Rate

~ 29.0%


~ 31.0%


1 Approximately ($1.0) 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 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/(Loss), Core Operating Margin and Core Earnings/(Loss) Per Share

Core operating earnings/(loss) is defined as GAAP earnings/(loss) from operations excluding unallocated pension and other postretirement benefit expense. Core operating margin is defined as core operating earnings/(loss) expressed as a percentage of revenue. Core earnings/(loss) per share is defined as GAAP diluted earnings/(loss) per share excluding the net earnings per share impact of unallocated pension and other postretirement benefit expense. Unallocated pension and other postretirement benefit 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 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/(loss), core operating margin and core earnings/(loss) 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 generally identify these forward-looking statements. Examples of forward-looking statements include statements relating to our future financial condition and operating results, as well as any other statement that does not directly relate to any historical or current fact. Forward-looking statements are based on expectations and assumptions that we believe to be reasonable when made, but that may not prove to be accurate. These statements are not guarantees and are subject to risks, uncertainties, and changes in circumstances that are difficult to predict. Many factors could cause actual results to differ materially and adversely from these forward-looking statements. Among these factors are risks related to: (1) general conditions in the economy and our industry, including those due to regulatory changes; (2) our reliance on our commercial airline customers; (3) the overall health of our aircraft production system, planned 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)
















Six months ended
June 30

Three months ended
June 30

(Dollars in millions, except per share data)

2017


2016


2017


2016


Sales of products


$38,659



$42,069



$20,147



$22,184


Sales of services

5,056


5,318


2,592


2,571


Total revenues

43,715


47,387


22,739


24,755







Cost of products

(31,806)


(37,210)


(16,443)


(20,265)


Cost of services

(3,820)


(4,180)


(1,932)


(2,044)


Boeing Capital interest expense

(26)


(32)


(13)


(16)


Total costs and expenses

(35,652)


(41,422)


(18,388)


(22,325)



8,063


5,965


4,351


2,430


Income from operating investments, net

120


151


39


97


General and administrative expense

(1,973)


(1,694)


(1,040)


(806)


Research and development expense, net

(1,651)


(3,044)


(813)


(2,127)


Loss on dispositions, net



(9)


(2)


(13)


Earnings/(loss) from operations

4,559


1,369


2,535


(419)


Other income, net

49


39


27


13


Interest and debt expense

(180)


(146)


(93)


(73)


Earnings/(loss) before income taxes

4,428


1,262


2,469


(479)


Income tax (expense)/benefit

(1,216)


(277)


(708)


245


Net earnings/(loss)


$3,212



$985



$1,761



($234)







Basic earnings/(loss) per share


$5.28



$1.52



$2.93



($0.37)







Diluted earnings/(loss) per share


$5.22



$1.51



$2.89



($0.37)







Cash dividends paid per share


$2.84



$2.18



$1.42



$1.09







Weighted average diluted shares (millions)

615.3


654.9


609.6


636.3


 

The Boeing Company and Subsidiaries

Consolidated Statements of Financial Position

(Unaudited) 









(Dollars in millions, except per share data)

June 30
2017


December 31
2016


Assets



Cash and cash equivalents


$8,737



$8,801


Short-term and other investments

1,589


1,228


Accounts receivable, net

9,503


8,832


Current portion of customer financing, net

549


428


Inventories, net of advances and progress billings

42,453


43,199


Total current assets

62,831


62,488


Customer financing, net

3,398


3,773


Property, plant and equipment, net of accumulated depreciation of $17,380 and $16,883

12,820


12,807


Goodwill

5,347


5,324


Acquired intangible assets, net

2,567


2,540


Deferred income taxes

325


332


Investments

1,278


1,317


Other assets, net of accumulated amortization of $484 and $497

1,470


1,416


Total assets


$90,036



$89,997


Liabilities and equity



Accounts payable


$12,093



$11,190


Accrued liabilities

14,294


14,691


Advances and billings in excess of related costs

25,802


23,869


Short-term debt and current portion of long-term debt

720


384


Total current liabilities

52,909


50,134


Deferred income taxes

1,415


1,338


Accrued retiree health care

5,856


5,916


Accrued pension plan liability, net

19,651


19,943


Other long-term liabilities

2,128


2,221


Long-term debt

10,055


9,568


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

4,644


4,762


Treasury stock, at cost - 419,062,607 and 395,109,568 shares

(40,730)


(36,097)


Retained earnings

42,222


40,714


Accumulated other comprehensive loss

(13,234)


(13,623)


Total shareholders' equity

(2,037)


817


Noncontrolling interests

59


60


Total equity

(1,978)


877


Total liabilities and equity


$90,036



$89,997


 

The Boeing Company and Subsidiaries

Consolidated Statements of Cash Flows

(Unaudited)










Six months ended
June 30

(Dollars in millions)

2017


2016


Cash flows – operating activities:



Net earnings


$3,212



$985


Adjustments to reconcile net earnings to net cash provided by operating activities:



Non-cash items – 



Share-based plans expense

98


97


Depreciation and amortization

965


890


Investment/asset impairment charges, net

46


50


Customer financing valuation expense/(benefit)

5


(4)


Loss on dispositions, net



9


Other charges and credits, net

129


141


Changes in assets and liabilities – 



Accounts receivable

(912)


(503)


Inventories, net of advances and progress billings

877


3,004


Accounts payable

419


1,221


Accrued liabilities

(680)


(269)


Advances and billings in excess of related costs

1,934


(954)


Income taxes receivable, payable and deferred

712


(494)


Other long-term liabilities

(18)


(103)


Pension and other postretirement plans

13


181


Customer financing, net

343


275


Other

(99)


(61)


  Net cash provided by operating activities

7,044


4,465


Cash flows – investing activities:



Property, plant and equipment additions

(905)


(1,419)


Property, plant and equipment reductions

25


13


Contributions to investments

(1,820)


(657)


Proceeds from investments

1,441


705


Purchase of distribution rights

(131)



Other

4


8


  Net cash used by investing activities

(1,386)


(1,350)


Cash flows – financing activities:



New borrowings

874


1,323


Debt repayments

(56)


(267)


Repayments of distribution rights and other asset financing



(24)


Stock options exercised

240


147


Employee taxes on certain share-based payment arrangements

(112)


(79)


Common shares repurchased

(5,000)


(5,501)


Dividends paid

(1,720)


(1,408)


  Net cash used by financing activities

(5,774)


(5,809)


Effect of exchange rate changes on cash and cash equivalents

52


(3)


Net decrease in cash and cash equivalents

(64)


(2,697)


Cash and cash equivalents at beginning of year

8,801


11,302


Cash and cash equivalents at end of period


$8,737



$8,605


 

The Boeing Company and Subsidiaries

Summary of Business Segment Data

(Unaudited)
















Six months ended
June 30

Three months ended
June 30

(Dollars in millions)

2017


2016


2017


2016


Revenues:





Commercial Airplanes


$30,018



$31,855



$15,713



$17,456


Defense, Space & Security:





Boeing Military Aircraft

5,540


6,638


2,904


2,979


Network & Space Systems

3,238


3,545


1,674


1,810


Global Services & Support

4,640


4,947


2,308


2,385


Total Defense, Space & Security

13,418


15,130


6,886


7,174


Boeing Capital

164


148


72


84


Unallocated items, eliminations and other

115


254


68


41


Total revenues


$43,715



$47,387



$22,739



$24,755


Earnings/(loss) from operations:





Commercial Airplanes


$2,782



$60



$1,567



($973)


Defense, Space & Security:





Boeing Military Aircraft

703


509


382


175


Network & Space Systems

250


301


152


153


Global Services & Support

674


605


356


265


Total Defense, Space & Security

1,627


1,415


890


593


Boeing Capital

64


23


25


18


Segment operating profit

4,473


1,498


2,482


(362)


Unallocated items, eliminations and other

86


(129)


53


(57)


Earnings/(loss) from operations

4,559


1,369


2,535


(419)


Other income, net

49


39


27


13


Interest and debt expense

(180)


(146)


(93)


(73)


Earnings/(loss) before income taxes

4,428


1,262


2,469


(479)


Income tax (expense)/benefit

(1,216)


(277)


(708)


245


Net earnings/(loss)


$3,212



$985



$1,761



($234)







Research and development expense, net:





Commercial Airplanes


$1,238



$2,548



$602



$1,877


Defense, Space & Security

435


521


222


263


Other

(22)


(25)


(11)


(13)


Total research and development expense, net


$1,651



$3,044



$813



$2,127







Unallocated items, eliminations and other





Share-based plans


($46)



($41)



($25)



($18)


Deferred compensation

(96)


(5)


(46)


(21)


Amortization of previously capitalized interest

(51)


(48)


(20)


(18)


Eliminations and other unallocated items

(359)


(198)


(179)


(69)


Sub-total (included in core operating earnings)

(552)


(292)


(270)


(126)


Pension

533


79


278


34


Postretirement

105


84


45


35


Total unallocated items, eliminations and other


$86



($129)



$53



($57)


 

The Boeing Company and Subsidiaries

Operating and Financial Data

(Unaudited)



Deliveries


Six months ended
June 30

Three months ended
June 30

Commercial Airplanes


2017


2016


2017


2016


737


236


248


123


127


747


4

(1)

3


3


2


767


5


5


3


4


777


42


51


21


28


787


65


68


33


38


Total


352


375


183


199


Note: Deliveries under operating lease are identified by parentheses.







Defense, Space & Security






Boeing Military Aircraft






AH-64 Apache (New)


5


15


2


8


AH-64 Apache (Remanufactured)


28


18


15


7


C-17 Globemaster III



4




1


CH-47 Chinook (New)


4


10


1


7


CH-47 Chinook (Renewed)


19


16


10


7


F-15 Models


7


7


4


3


F/A-18 Models


12


14


6


6


P-8 Models


9


9


5


5








Network & Space Systems






Commercial and Civil Satellites


3


1


2



Military Satellites



1



1
























Contractual backlog (Dollars in billions)



June 30
2017


March 31
2017


December 31
2016

Commercial Airplanes



 

$423.4


 

$415.1


 

$416.2

Defense, Space & Security:






Boeing Military Aircraft



22.4


23.4


21.4

Network & Space Systems



4.5


6.0


5.1

Global Services & Support



17.3


17.0


15.6

Total Defense, Space & Security



44.2


46.4


42.1

Total contractual backlog



$467.6


$461.5


$458.3

Unobligated backlog



$14.6


$18.0


$15.2

Total backlog



$482.2


$479.5


$473.5

Workforce



144,000


147,000


150,500


The Boeing Company and Subsidiaries
Reconciliation of Non-GAAP Measures
(Unaudited)

The tables provided below reconcile the non-GAAP financial measures core operating earnings/(loss), core operating margin, and core earnings/(loss) per share with the most directly comparable GAAP financial measures, earnings from operations/(loss), operating margin, and diluted earnings/(loss) per share. See page 6 of this release for additional information on the use of these non-GAAP financial measures.
















(Dollars in millions, except per share data)

Second Quarter

First Half

Guidance


2017

2016

2017

2016

2017

Revenues


$22,739



$24,755



$43,715



$47,387









GAAP Earnings/(Loss) From Operations


$2,535



($419)



$4,559



$1,369









Unallocated Pension Income


($278)



($34)



($533)



($79)



Unallocated Other Postretirement Benefit Income


($45)



($35)



($105)



($84)



Unallocated Pension and Other Postretirement Benefit Income


($323)



($69)



($638)



($163)


~($1,220)

Core Operating Earnings/(Loss) (non-GAAP)


$2,212



($488)



$3,921



$1,206













GAAP Diluted Earnings/(Loss) Per Share


$2.89



($0.37)



$5.22



$1.51


$11.10 - $11.30

Unallocated Pension Income


($0.46)



($0.05)



($0.86)



($0.12)



Unallocated Postretirement Benefit Income


($0.07)



($0.06)



($0.17)



($0.13)


($1.30)

Provision for deferred income taxes on adjustments (1)


$0.19



$0.04



$0.36



$0.09



Core Earnings/(Loss) Per Share (non-GAAP)


$2.55



($0.44)



$4.55



$1.35


$9.80 - $10.00







Weighted Average Diluted Shares (millions)

609.6


636.3


615.3


654.9


~ 610







(1) The income tax impact is calculated using the tax rate in effect for the non-GAAP adjustments.

 

 

SOURCE Boeing

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