Boeing

CHICAGO, Oct. 22 /PRNewswire-FirstCall/ -- The Boeing Company's (NYSE: BA) third-quarter net income declined 38 percent, to $695 million, while earnings per share declined 33 percent to $0.96 per share, both reflecting an ongoing machinists' strike and supplier production challenges on customer-furnished galleys for certain wide-body airplanes. Those items reduced third-quarter commercial airplane deliveries by approximately 35 units and net earnings by an estimated $0.60 per share. Revenues for the quarter declined 7 percent, to $15.3 billion (Table 1).

"While the suspension of commercial airplane deliveries had a major impact on the quarter, we effectively executed the remainder of our business and kept our focus on the strong balance sheet we have built over the past few years," said Chairman, President and CEO Jim McNerney. "That balance sheet, along with our broad-based, record $349 billion backlog, gives us exceptional flexibility for weathering an extended work stoppage and for adapting to circumstances that may arise from the global financial crisis and softening global economy."

Boeing will provide updated financial guidance and an assessment of the schedule for its affected airplanes after the strike concludes.

For the nine months of 2008, net income fell 9 percent to $2.8 billion, earnings per share decreased 4 percent to $3.76 per share, and revenue fell 1 percent to $48.2 billion. The operating margin was slightly lower at 8.7 percent. Results were impacted by the lower commercial airplane deliveries and higher costs for AEW&C announced in the second quarter, partially offset by lower pension and deferred compensation expenses. There were no significant write-downs due to the global financial crisis.

Third-quarter operating cash outflow was $0.4 billion, reflecting the effects of the labor strike and a planned increase in working capital requirements, mostly inventory for 787 (Table 2). Operating cash flow for the first nine months was $1.2 billion, and free cash flow* was essentially zero. Total company backlog at quarter-end was $349 billion, up 7 percent year-to-date driven by commercial airplane orders and new contract awards at IDS.

  Table 2.  Cash Flow
                                           3rd Quarter        Nine Months
  (Millions)                              2008     2007      2008      2007

  Operating Cash Flow (1)                ($442)  $3,329    $1,240    $7,691
     Less Additions to Property, Plant
      & Equipment                        ($422)   ($417)  ($1,229)  ($1,282)
  Free Cash Flow*                        ($864)  $2,912       $11    $6,409

  (1) Operating cash flow includes $531 in pension plan contributions in
      first nine months of 2008 and $563 in first nine months of 2007, both
      mostly in 1Q.
  * Non-GAAP measure.  A complete definition and reconciliation of Boeing's
    use of non-GAAP measures, identified by an asterisk (*), is found on
    page 7, "Non-GAAP Measure Disclosure."

Cash and investments in marketable securities totaled $7.2 billion at quarter-end, down from the end of the second quarter, reflecting 787 inventory growth, strike impacts and previously announced business acquisitions (Table 3). The company also completed $589 million in scheduled repayments of BCC debt during the quarter.

  Table 3.  Cash, Marketable Securities and Debt Balances
                                                          Quarter-End
  (Billions)                                        3Q08               2Q08
  Cash                                              $4.2               $5.6
  Marketable Securities (1)                         $3.0               $4.6
     Total                                          $7.2              $10.2

  Debt Balances:
  The Boeing Company                                $3.9               $3.9
  Boeing Capital Corporation                        $3.7               $4.3
     Total Consolidated Debt                        $7.6               $8.2

  (1) Marketable securities consists primarily of investments in
      high-quality fixed-income and asset-backed securities classified as
      "short-term investments" and "investments."  At September 30, 2008, it
      also includes time deposits of $0.2 billion and no commercial paper
      classified as "short-term investments."  At June 30, 2008, it also
      included time deposits of $1.2 billion and commercial paper of
      $0.2 billion classified as "short-term investments."

During the quarter, the company returned $0.8 billion to shareholders by repurchasing 7.9 million shares for $519 million and paying $295 million in dividends. Share repurchases in the first nine months totaled $2.6 billion for 34.5 million shares.

  Segment Results
  Commercial Airplanes

Boeing Commercial Airplanes (BCA) third-quarter revenues were $6.9 billion, 16 percent below the same period last year, driven by the fewer deliveries due to the strike and supplier production challenges on customer-furnished galleys for certain wide-body airplanes (Table 4). The labor strike has affected production of all airplane programs in Seattle, Portland and Wichita. Earnings from operations declined to $394 million from $945 million in the year-ago period due to the lower deliveries, the absence of supplier R&D cost sharing payments and additional 747 program costs.

  Table 4. Commercial Airplanes Operating Results

  (Millions, except
   deliveries & margin    3rd Quarter                Nine Months
   percent)              2008    2007     Change    2008     2007     Change

  Commercial Airplanes
   Deliveries              84     109      (23%)     325      329       (1%)

  Revenues             $6,946  $8,258      (16%) $23,674  $24,520       (3%)
  Earnings from
   Operations            $394    $945      (58%)  $2,154   $2,611      (18%)

  Operating Margins      5.7%   11.4%   (5.7)Pts    9.1%    10.6%   (1.5)Pts

For the first nine months, BCA revenues decreased 3 percent to $23.7 billion on lower deliveries due to the strike and galley shortage. Operating earnings decreased 18 percent to $2.2 billion while margins were 9.1 percent, driven by the lower deliveries, infrastructure cost absorption and additional 747 program costs that were partially offset by lower research and development spending.

BCA booked 149 gross orders during the quarter and 625 during the first nine months. Contractual backlog rose to a record $276 billion, increasing 8 percent year-to-date to approximately eight times BCA's annual revenues.

The 787 Dreamliner made progress during the quarter despite the labor strike. Key milestones included a successful hydraulic system test, landing gear test, and pressurization test of the static airframe -- the last, a key step in validating the structural integrity of the airplane. The program also began testing the flight controls and began final assembly of the fourth flight-test airplane. To date, the program has won 895 net airplane orders from 58 customers.

Integrated Defense Systems

Boeing Integrated Defense Systems (IDS) third quarter revenues rose 6 percent to $8.5 billion on higher volumes across all segments. Operating earnings rose 4 percent to $854 million, yielding an operating margin of 10.1 percent. The strike reduced IDS operating margins by an estimated 0.4 points.

For the first nine months, IDS revenue increased to $24.0 billion, operating earnings declined 4 percent to $2.4 billion and operating margins declined to 9.8 percent, including a reduction of 1.0 point due to the second- quarter AEW&C charge.

  Table 5.  Integrated Defense Systems Operating Results

  (Millions, except       3rd Quarter               Nine Months
   margin percent)       2008    2007     Change   2008     2007      Change

  Revenues
     Boeing Military
      Aircraft         $3,777  $3,379       12%  $10,326  $10,122        2%
     Network & Space
      Systems          $2,984  $2,953        1%   $8,479   $8,633       (2%)
     Global Services &
      Support          $1,736  $1,673        4%   $5,201   $4,939        5%
  Total IDS Revenues   $8,497  $8,005        6%  $24,006  $23,694        1%

  Earnings (Loss) from
   Operations
     Boeing Military
      Aircraft           $373    $413      (10%)    $922   $1,251      (26%)
     Network & Space
      Systems            $301    $165       82%     $805     $570       41%
     Global Services &
      Support            $180    $244      (26%)    $624     $640       (3%)
  Total IDS Earnings
   from Operations       $854    $822        4%   $2,351   $2,461       (4%)

  Operating Margins     10.1%   10.3%  (0.2)Pts     9.8%    10.4%  (0.6)Pts

Boeing Military Aircraft reported third-quarter revenues of $3.8 billion, 12 percent higher than the prior year, on a favorable mix of aircraft deliveries. Operating margins were 9.9 percent for the quarter, reduced by an estimated 1.0 point due to the strike.

For the quarter, revenues in Network & Space Systems increased slightly to $3.0 billion. Operating margins of 10.1 percent were due to solid performance across the segment's broad array of programs.

Global Services & Support revenues rose 4 percent to $1.7 billion on growth in integrated logistics. The business's outstanding program performance was offset by contract mix and disposition of contract matters, causing operating earnings to fall 26 percent to $180 million and the operating margin to decrease to 10.4 percent.

The IDS backlog increased during the quarter to $73.0 billion. Significant new awards in the quarter included a Chinook multi-year contract, Qatar's C-17 order and an International Space Station contract extension.

Boeing Capital Corporation

Boeing Capital Corporation (BCC) reported third-quarter pre-tax earnings of $37 million, down from $61 million in the same period last year which included a significantly larger portfolio (Table 6). BCC's portfolio balance at the end of the quarter was $6.1 billion, down from $6.5 billion at the beginning of the year primarily on normal portfolio run-off and depreciation. BCC contributed $146 million in cash dividends to Boeing during the quarter and $220 million in the first nine months. BCC's debt-to-equity ratio remained steady at 5.0-to-1.

  Table 6.  Boeing Capital Corporation Operating Results

                                     3rd Quarter           Nine Months
  (Millions)                         2008   2007  Change   2008 2007  Change

  Revenues                           $171   $197   (13%)   $535  $619  (14%)

  Pre-Tax Income                      $37    $61   (39%)   $143  $204  (30%)


  Additional Information

The "Other" segment consists primarily of Boeing Engineering, Operations and Technology as well as certain results related to the consolidation of all business units. Other segment expense was $48 million in the third quarter, up slightly from $44 million in the same period last year.

Unallocated expense was $90 million, down from $285 million last year. Deferred compensation expense was $109 million lower due to changes in Boeing stock price and broad stock market conditions. Unallocated pension expense was lower by $98 million.

Total pension expense was $176 million, down from $278 million in the same quarter last year, of which $51 million was recorded in unallocated expense and the balance was recorded as expense in the business segments.

Income tax expense was $470 million, including $57 million in adjustments that drove the effective income tax rate to 41 percent in the quarter. These adjustments reduced net income by $0.08 per share.

Outlook

Due to the uncertain length of the labor strike, Boeing will update its financial guidance after conclusion of the strike upon completing an assessment of future results.

The company continues to focus on maintaining its financial strength and improving business performance. Market demand for deliveries of new, fuel-efficient commercial airplanes remains strong, exceeding the available supply. Although it has not financed any new airplane deliveries since 2006, the company expects that it may need to finance some deliveries beginning in 2009, though it is not in a position to identify which specific deliveries will need manufacturer financing. Boeing has made backstop financing commitments for 3% of the commercial airplanes backlog -- mostly for 787s -- associated with delivery positions through the end of the next decade.

Boeing expects total US defense spending growth to moderate, but is focused on improving the outlook for individual programs by keeping them operationally healthy, relevant to the warfighter and supported by well-informed customers.

Non-GAAP Measure Disclosure

Management believes that the non-GAAP (Generally Accepted Accounting Principles) measures (indicated by an asterisk *) used in this report provide investors with important perspectives into the company's ongoing business performance. The company does not intend for the information to be considered in isolation or as a substitute for the related GAAP measures. Other companies may define the measures differently. The following definitions are provided:

Free Cash Flow

Free cash flow is defined as GAAP operating cash flow less 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 internally to assess both business performance and overall liquidity. Table 2 provides a reconciliation between GAAP operating cash flow and free cash flow.

Forward-Looking Information Is Subject to Risk and Uncertainty

Certain statements in this report may constitute "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "expects," "intends," "plans," "projects," "believes," "estimates," and similar expressions are used to identify these forward-looking statements. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Forward-looking statements in this press release include, among others, statements regarding future results as a result of our growth and productivity initiatives, our 2008 and 2009 financial outlook and the benefits of the IDS structure. Forward-looking statements are based upon assumptions as to future events that may not prove to be accurate. Actual outcomes and results may differ materially from what is expressed or forecasted in these forward-looking statements. As a result, these statements speak only as of the date they were made and we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Our actual results and future trends may differ materially depending on a variety of factors, including the continued operation, viability and growth of major airline customers and non-airline customers (such as the U.S. Government); adverse developments in the value of collateral securing customer and other financings; the occurrence of any significant collective bargaining labor dispute; our successful execution of internal performance plans including our company-wide growth and productivity initiatives, production rate increases and decreases (including any reduction in or termination of an aircraft product), availability of raw materials, acquisition and divestiture plans, and other cost-reduction and productivity efforts; charges from any future SFAS No. 142 review; ability to meet development, production and certification schedules for the 787 program and the ability to meet scheduled deliveries of the 787 airplane; technical or quality issues in development programs (affecting schedule and cost estimates) or in the satellite industry; an adverse development in rating agency credit ratings or assessments; the actual outcomes of certain pending sales campaigns and U.S. and foreign government procurement activities, including the uncertainty associated with the procurement of tankers by the U.S. Department of Defense (DoD) and funding of the C-17 program; the cyclical nature of some of our businesses; unanticipated financial market changes which may impact pension plan assumptions; domestic and international competition in the defense, space and commercial areas; continued integration of acquired businesses; performance issues with key suppliers, subcontractors and customers; significant disruption to air travel worldwide (including future terrorist attacks); global trade policies; worldwide political stability; domestic and international economic conditions; price escalation; the outcome of political and legal processes, changing priorities or reductions in the U.S. Government or foreign government defense and space budgets; termination of government or commercial contracts due to unilateral government or customer action or failure to perform; legal, financial and governmental risks related to international transactions; legal and investigatory proceedings; tax settlements with the IRS and various states; U.S. Air Force review of previously awarded contracts; costs associated with the exit of the Connexion by Boeing business; and other economic, political and technological risks and uncertainties. Additional information regarding these factors is contained in our SEC filings, including, without limitation, our Annual Report on Form 10-K for the year ended December 31, 2007 and our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2008 and June 30, 2008.

                   The Boeing Company and Subsidiaries
                  Consolidated Statements of Operations
                               (Unaudited)

   (Dollars in millions           Nine months ended     Three months ended
    except per share data)          September 30           September 30
                                   2008     2007          2008     2007

  Sales of products              $40,393    $42,193     $12,407  $14,177
  Sales of services                7,852      6,717       2,886    2,340
  Total revenues                  48,245     48,910      15,293   16,517

  Cost of products              (32,736)   (33,471)    (10,311)  (11,331)
  Cost of services               (6,179)    (5,386)     (2,176)   (1,803)
  Boeing Capital Corporation
   interest expense                (173)      (225)        (54)      (73)
  Total costs and expenses      (39,088)   (39,082)    (12,541)  (13,207)
                                   9,157      9,828       2,752    3,310
  Income from operating
   investments, net                  195        100          72       11
  General and administrative
   expense                       (2,350)    (2,735)       (740)     (931)
  Research and development
   expense, net                  (2,811)    (2,857)       (937)     (869)
  Gain/(loss) on
   dispositions/business
   shutdown, net                       2       (22)                  (22)
  Earnings from operations         4,193      4,314       1,147    1,499
  Other income, net                  257        355          55      139
  Interest and debt expense        (145)      (139)        (49)      (47)
  Earnings before income taxes     4,305      4,530       1,153    1,591
  Income tax expense             (1,565)    (1,499)       (470)     (482)
  Net earnings from
   continuing operations           2,740      3,031         683    1,109
  Net gain on disposal of
   discontinued operations,
   net of taxes of $10, $6,
   $6, and $2                         18         10          12        5
  Net earnings                    $2,758     $3,041        $695   $1,114

  Basic earnings per share
   from continuing operations      $3.78      $3.98       $0.95    $1.46
  Net gain on disposal of
   discontinued operations,
   net of taxes                     0.02       0.02        0.02     0.01
  Basic earnings per share         $3.80      $4.00       $0.97    $1.47

  Diluted earnings per
   share from continuing
   operations                      $3.74      $3.91       $0.94    $1.43
  Net gain on disposal of
   discontinued operations,
   net of taxes                     0.02       0.01        0.02     0.01
  Diluted earnings per share       $3.76      $3.92       $0.96    $1.44
  Cash dividends paid per share    $1.20      $1.05       $0.40    $0.35
  Weighted average diluted
   shares (millions)               734.2      776.2       721.9    773.4



                   The Boeing Company and Subsidiaries
              Consolidated Statements of Financial Position
                               (Unaudited)

                                                 September 30    December 31
  (Dollars in millions except per share data)        2008           2007
  Assets
  Cash and cash equivalents                         $4,186         $7,042
  Short-term investments                               591          2,266
  Accounts receivable, net                           5,814          5,740
  Current portion of customer
   financing, net                                      193            328
  Deferred income taxes                              2,408          2,341
  Inventories, net of advances and
   progress billings                                11,149          9,563
    Total current assets                            24,341         27,280
  Customer financing, net                            5,989          6,777
  Property, plant and equipment,
   net of accumulated depreciation
   of $12,257 and $11,915                            8,686          8,265
  Goodwill                                           3,530          3,081
  Other acquired intangibles, net                    2,208          2,093
  Deferred income taxes                                183            197
  Investments                                        3,717          4,111
  Pension plan assets, net                           6,497          5,924
  Other assets, net of accumulated
   amortization of $389 and $385                     1,368          1,258
    Total assets                                   $56,519        $58,986
  Liabilities and Shareholders'
   Equity
  Accounts payable and other
   liabilities                                     $16,427        $16,676
  Advances and billings in excess
   of related costs                                 11,793         13,847
  Income taxes payable                                 752            253
  Short-term debt and current
   portion of long-term debt                           390            762
    Total current liabilities                       29,362         31,538
  Deferred income taxes                              1,435          1,190
  Accrued retiree health care                        7,165          7,007
  Accrued pension plan liability,
   net                                               1,102          1,155
  Non-current income taxes payable                   1,132          1,121
  Other long-term liabilities                          392            516
  Long-term debt                                     7,217          7,455
  Shareholders' equity:
    Common shares, par value $5.00 -
     1,200,000,000 shares
     authorized; 1,012,261,159
     and 1,012,261,159 shares issued                 5,061          5,061
    Additional paid-in capital                       3,792          4,757
    Treasury shares, at cost -
     278,118,187 and 244,217,170                   (17,425)       (14,842)
    Retained earnings                               23,360         21,376
    Accumulated other comprehensive
     loss                                           (4,466)        (4,596)
    ShareValue Trust shares -
     28,192,067 and 31,362,850                      (1,608)        (2,752)
      Total shareholders' equity                     8,714          9,004
      Total liabilities and
       shareholders' equity                        $56,519        $58,986



                   The Boeing Company and Subsidiaries
                  Consolidated Statements of Cash Flows
                               (Unaudited)

                                                      Nine months ended
                                                        September 30
  (Dollars in millions)                              2008           2007
  Cash flows - operating activities:
    Net earnings                                   $2,758         $3,041
    Adjustments to reconcile net
     earnings to net cash provided
     by operating activities:
      Non-cash items -
        Share-based plans
         expense                                      159            266
        Depreciation                                  952            975
        Amortization of other
         acquired intangibles                         122            116
        Amortization of debt
         discount/premium and
         issuance costs                                 8              7
        Investment/asset
         impairment charges,
         net                                           21              5
        Customer financing
         valuation
         provision/(benefit)                           73            (52)
        Gain on disposal of
         discontinued
         operations                                   (28)           (16)
        (Gain)/loss on
         dispositions/business
         shutdown, net                                 (2)            22
        Other charges and
         credits, net                                  83            120
        Excess tax benefits
         from share-based
         payment arrangements                        (100)          (141)
      Changes in assets and
       liabilities -
        Accounts receivable                          (145)          (358)
        Inventories, net of
         advances and progress
         billings                                  (1,670)          (146)
        Accounts payable and
         other liabilities                            172            470
        Advances and billings
         in excess of related
         costs                                     (2,061)           747
        Income taxes
         receivable, payable
         and deferred                                 733          1,195
        Other long-term
         liabilities                                 (157)             1
        Pension and other
         postretirement plans                        (159)           287
        Customer financing, net                       628          1,254
        Other                                        (147)          (102)
          Net cash provided
           by operating
           activities                               1,240          7,691
  Cash flows - investing activities:
    Property, plant and equipment
     additions                                     (1,229)        (1,282)
    Property, plant and equipment
     reductions                                        16             22
    Acquisitions, net of cash
     acquired                                        (490)           (75)
    Contributions to investments                   (6,372)        (2,673)
    Proceeds from investments                       8,399          2,563
    Purchase of distribution
     rights                                          (151)          (152)
          Net cash
           provided/(used)
           by investing
           activities                                 173         (1,597)
  Cash flows - financing activities:
    New borrowings                                      5             28
    Debt repayments                                  (616)        (1,007)
    Repayments of distribution
     rights financing                                (210)
    Stock options exercised, other                     43            196
    Excess tax benefits from
     share-based payment
     arrangements                                     100            141
    Employee taxes on certain
     share-based payment
     arrangements                                     (81)
    Common shares repurchased                      (2,583)        (1,817)
    Dividends paid                                   (901)          (826)
          Net cash used by
           financing
           activities                              (4,243)        (3,285)
  Effect of exchange rate changes on
   cash and cash equivalents                          (26)            21
  Net (decrease)/increase in cash
   and cash equivalents                            (2,856)         2,830
  Cash and cash equivalents at
   beginning of year                                7,042          6,118
  Cash and cash equivalents at end
   of period                                       $4,186         $8,948



                   The Boeing Company and Subsidiaries
                     Summary of Business Segment Data
                               (Unaudited)

                                     Nine months ended Three months ended
                                       September 30      September 30
  (Dollars in millions)                  2008     2007     2008     2007
  Revenues:
     Commercial Airplanes             $23,674  $24,520   $6,946   $8,258
     Integrated Defense Systems:
        Boeing Military Aircraft       10,326   10,122    3,777    3,379
        Network and Space Systems       8,479    8,633    2,984    2,953
        Global Services and Support     5,201    4,939    1,736    1,673
     Total Integrated Defense Systems  24,006   23,694    8,497    8,005
     Boeing Capital Corporation           535      619      171      197
     Other                                527      234      300       77
     Accounting
      differences/eliminations           (497)    (157)    (621)     (20)
     Total revenues                   $48,245  $48,910  $15,293  $16,517

  Earnings from operations:
     Commercial Airplanes              $2,154   $2,611     $394      945
     Integrated Defense Systems:
        Boeing Military Aircraft          922    1,251      373      413
        Network and Space Systems         805      570      301      165
        Global Services and Support       624      640      180      244
     Total Integrated Defense Systems   2,351    2,461      854      822
     Boeing Capital Corporation           143      204       37       61
     Other                               (233)    (165)     (48)     (44)
     Unallocated expense                 (222)    (797)     (90)    (285)
     Earnings from operations           4,193    4,314    1,147    1,499
     Other income, net                    257      355       55      139
     Interest and debt expense           (145)    (139)     (49)     (47)
     Earnings before income taxes       4,305    4,530    1,153    1,591
     Income tax expense                (1,565)  (1,499)    (470)    (482)
     Net earnings from continuing
      operations                        2,740    3,031      683    1,109
     Net gain on disposal of
      discontinued operations,
     net of taxes of $10, $6, $6, and
      $2                                   18       10       12        5
     Net earnings                      $2,758   $3,041     $695   $1,114

  Research and development expense:
     Commercial Airplanes              $2,108   $2,192     $705     $635
     Integrated Defense Systems:
        Boeing Military Aircraft          362      340      121      118
        Network and Space Systems         227      223       73       80
        Global Services and Support       112       77       38       28
     Total Integrated Defense Systems     701      640      232      226
     Other                                  2       25                 8
     Total research and development
      expense                          $2,811   $2,857     $937     $869

  Unallocated expense:
     Share-based plans expense          $(115)   $(227)    $(70)    $(58)
     Deferred compensation expense        136     (117)      55      (54)
     Pension                             (194)    (420)     (51)    (149)
     Post-retirement                      (60)     (93)     (20)     (34)
     Capitalized interest                 (38)     (36)     (11)     (13)
     Other                                 49       96        7       23
     Total                              $(222)   $(797)    $(90)   $(285)



                   The Boeing Company and Subsidiaries
                       Operating and Financial Data
                               (Unaudited)

                                      Nine months ended  Three months ended
  Deliveries                            September 30        September 30
  Commercial Airplanes                 2008      2007     2008        2007
       737 Next-Generation              254       250       67          81
       747                               13        12        4           5
       767                                8         9        2           3
       777                               50        58       11          20
      Total                             325       329       84         109


  Integrated Defense Systems
  Boeing Military Aircraft
       F/A-18 Models                     33        33       12          11
       F-15E Eagle                       11         6        7           3
       C-17 Globemaster                  12        12        4           4
       KC-767 Tanker                      2
       CH-47 Chinook                      8         7        4           1
       T-45TS Goshawk                     5         7        2           2
       AH-64 Apache                       2        17        1           9
       C-40A Clipper                                2

  Network and Space Systems
       Delta II                           1         2        1           1
       Commercial and Civil
        Satellites                        1         3
       Military Satellites                          1                    1


  Contractual backlog             September 30 June 30 March 31  December 31
   (Dollars in billions)               2008     2008     2008        2007
     Commercial Airplanes            $275.9    $274.5   $271.2      $255.2
     Integrated Defense Systems:
       Boeing Military Aircraft        24.0      23.8     23.1        23.0
       Network and Space Systems        7.6      11.0     10.5         9.2
       Global Services and Support      9.8      10.7     10.8         9.6
     Total Integrated Defense Systems  41.4      45.6     44.4        41.8
  Total contractual backlog          $317.3    $320.1   $315.6      $297.0
  Unobligated backlog                 $32.1     $26.0    $30.6       $30.2
  Total backlog                      $349.4    $346.1   $346.2      $327.2
  Workforce                         164,200   163,900  161,500     159,300

SOURCE: The Boeing Company

CONTACT: Investor Relations, Diana Sands, or Rob Young, +1-312-544-2140,
or Communications, Todd Blecher, +1-312-544-2002, all of The Boeing Company

Web site: http://www.boeing.com/