Boeing to Add Space Bins to Existing Alaska Airlines 737 Fleet

Airline to modify 34 in-service airplanes to significantly increase overhead storage

OSHKOSH, Wis., July28, 2016 – Boeing (NYSE: BA) and Alaska Airlines announced today at EAA AirVenture Oshkosh that the Seattle-based airline will begin modifying in-service Boeing Sky Interior 737 airplanes with more spacious Space Bins in the coming year.

Alaska Airlines is the launch customer for Boeing’s retrofit Space Bin program. In total, the airline plans to modify 34 airplanes – primarily 737-900ERs (Extended Range) – with the new overhead bins.

Boeing’s new overhead bins increases the room for carry-on baggage by up to 50 percent, depending on the airline’s configuration.

“Alaska is committed to making flying hassle-free and comfortable,” said Mark Eliasen, treasurer and vice president of finance, Alaska Airlines. “Many passengers want to keep a bag in the cabin and Boeing’s Space Bins make it possible for virtually everyone to stow a wheeled suitcase. That’s why Alaska is thrilled to be equipping 100 percent of our new jets with Space Bins and retrofitting all of our existing 737-900ERs.”

Alaska Airlines launched Boeing’s in-production Space Bins program last year and by 2017, will have almost half of its fleet outfitted with Space Bins.

“Boeing works very closely with our customers to enhance their airplanes with features that improve the passenger experience,” said Mike Fleming, vice president, Boeing Fleet Services. “By providing our customers with a retrofit option for the Space Bins, we are allowing long-time 737 customers, like Alaska Airlines, the ability to keep their entire fleet current.”

Boeing’s Space Bin stows six bags, two more than the current pivot bins installed on Next-Generation 737s with the Boeing Sky Interior. That’s based on a standard size carry-on bag measuring 9 in x 14 in x 22 in (23 cm x 36 cm x 56 cm).

When opened, the bottom edge of a Space Bin hangs about 2 inches (5 centimeters) lower, so travelers can lift their carry-on bags more easily. The deeper bins allow more bags to be stowed and increase visibility into the back of the bins.

Alaska Airlines celebrated its first 737 featuring Space Bins in October 2015, and will have nearly 30 Space Bin-outfitted airplanes in service by the end of the year.

Boeing’s Space Bins are available for retrofit on in-service Next-Generation 737s, and as an optional feature on in-production Next-Generation 737s and 737 MAXs.

###

Contact:
Kate Bergman

Boeing Commercial Aviation Services Communications

+1 206-304-7411

Kate.m.bergman@boeing.com

 

Source : Boeing Website

Boeing Reports Second-Quarter Results 2016

CHICAGO, July 27, 2016 /PRNewswire/ —

  • Revenue increased to $24.8 billion on strong commercial deliveries and services growth
  • Loss of $0.37 per share (GAAP) and core (non-GAAP)* loss of $0.44 per share reflect $3.23 per share impact related to previously announced 787 R&D reclassification and 747 & Tanker charges
  • Strong operating cash flow of $3.2 billion; repurchased 15 million shares for $2.0 billion
  • Backlog remains robust at $472 billion with nearly 5,700 commercial airplane orders
  • Cash and marketable securities of $9.3 billion provide strong liquidity
  • Reaffirmed cash & revenue guidance; EPS reflects reclassification, charges, solid performance & tax

 

Table 1. Summary Financial Results

Second Quarter

First Half

(Dollars in Millions, except per share data)

2016

2015

Change

2016

2015

Change

Revenues

$24,755

$24,543

1%

$47,387

$46,692

1%

GAAP

Earnings/(Loss) From Operations

($419)

$1,683

(125)%

$1,369

$3,702

(63)%

Operating Margin

(1.7)%

6.9%

(8.6) Pts

2.9%

7.9%

(5.0) Pts

Net Earnings/(Loss)

($234)

$1,110

(121)%

$985

$2,446

(60)%

Earnings/(Loss) Per Share

($0.37)

$1.59

(123)%

$1.51

$3.46

(56)%

Operating Cash Flow

$3,234

$3,297

(2)%

$4,465

$3,385

32%

Non-GAAP*

Core Operating Earnings/(Loss)

($488)

$1,713

(128)%

$1,206

$3,845

(69)%

Core Operating Margin

(2.0)%

7.0%

(9.0) Pts

2.5%

8.2%

(5.7) Pts

Core Earnings/(Loss) Per Share

($0.44)

$1.62

(127)%

$1.35

$3.59

(62)%

*

Non-GAAP measures. Complete definitions of Boeing’s non-GAAP measures are on page 7, “Non-GAAP Measures Disclosures.”     

The Boeing Company [NYSE: BA] reported second-quarter revenue of $24.8 billion on strong commercial deliveries and services growth (Table 1). GAAP loss per share of $0.37 and core loss per share (non-GAAP)* of $0.44 reflect the previously announced 787 cost reclassification ($1.33 per share) and charges on the 747 program ($1.28 per share) and the KC-46 Tanker program ($0.62 per share), partially offset by solid execution and higher volume.

“The underlying operating performance of the company remains solid with our commercial and defense teams again delivering strong revenues and operating cash flow. Actions taken during the quarter that impacted our earnings were the right, proactive steps to reduce risk and strengthen our position for the future,” said Chairman, President and Chief Executive Officer Dennis Muilenburg. “Our strong cash generation also supported our ongoing commitment to invest in product innovation and in our people, and return substantial cash to shareholders through stock repurchases and dividends.”

“As we look forward to the second half of the year, we anticipate continued strong operating performance across our production and services programs on generally healthy demand for our broad portfolio of market-leading offerings. Our commercial airplane development programs remain on track and we have successfully completed the flight testing required for customer approval of key KC-46 production milestones.”

“Overall our teams remain intensely focused on improving productivity and quality, building out our large and diverse backlog, investing in future growth, and delivering increasing value to all of our stakeholders.”

GAAP earnings per share guidance for 2016 has been adjusted to between $6.40 and $6.60 from $8.45 and $8.65 and core earnings per share (non-GAAP)* guidance has been adjusted to between $6.10 and $6.30 from $8.15 and $8.35 to reflect the impact of the 787 R&D reclassification and the 747 and Tanker charges, solid performance and tax benefits.

Table 2. Cash Flow

Second Quarter

First Half

(Millions)

2016

2015

2016

2015

Operating Cash Flow

$3,234

$3,297

$4,465

$3,385

Less Additions to Property, Plant & Equipment

($671)

($692)

($1,419)

($1,266)

Free Cash Flow*

$2,563

$2,605

$3,046

$2,119

*

Non-GAAP measures. Complete definitions of Boeing’s non-GAAP measures are on page 7, “Non-GAAP Measures Disclosures.”     

Operating cash flow in the quarter was $3.2 billion, largely reflecting commercial airplane production rates and solid operating performance (Table 2). During the quarter, the company repurchased 15.3 million shares for $2.0 billion, leaving $8.5 billion remaining under the current repurchase authorization which is expected to be completed over approximately the next two years. The company also paid $691 million in dividends in the quarter, reflecting an approximately 20 percent increase in dividends per share compared to the same period of the prior year.

Table 3. Cash, Marketable Securities and Debt Balances

Quarter-End

(Billions)

Q2 16

Q1 16

Cash

$8.6

$7.9

Marketable Securities1

$0.7

$0.5

Total

$9.3

$8.4

Debt Balances:

The Boeing Company, net of intercompany loans to BCC

$8.7

$7.6

Boeing Capital, including intercompany loans

$2.3

$2.4

Total Consolidated Debt

$11.0

$10.0

1

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

Cash and investments in marketable securities totaled $9.3 billion, up from $8.4 billion at the beginning of the quarter. Debt was $11.0 billion, up from the beginning of the quarter, primarily due to the issuance of new debt (Table 3).

Total company backlog at quarter-end was $472 billion, down from $480 billion at the beginning of the quarter, and included net orders for the quarter of $17 billion.

Segment Results

Commercial Airplanes

Table 4. Commercial Airplanes

Second Quarter

First Half

(Dollars in Millions)

2016

2015

Change

2016

2015

Change

Commercial Airplanes Deliveries

199

197

1%

375

381

(2)%

Revenues

$17,456

$16,877

3%

$31,855

$32,258

(1)%

Earnings/(Loss) from Operations

($973)

$1,206

(181)%

$60

$2,823

(98)%

Operating Margin

(5.6)%

7.1%

(12.7) Pts

0.2%

8.8%

(8.6) Pts

Commercial Airplanes second-quarter revenue increased 3 percent to $17.5 billion on higher volume and mix (Table 4). Second-quarter operating margin was negative 5.6 percent, reflecting previously announced R&D reclassification of $1,235 million on the 787 program, a pre-tax charge of $1,188 million on the 747 program, and a pre-tax charge of $354 million on the KC-46 Tanker program. The results also reflect higher planned R&D and solid execution. Second-quarter operating margin excluding the reclassification and charges (non-GAAP)* was 10.3%.

During the quarter, the 787 program reached a 12 per month delivery rate and the company opened the new 777X Composite Wing Center in Everett. The 737 program rolled out the first two 737 MAX production airplanes and has captured over 3,200 orders for the 737 MAX since launch, including an order for 100 737 MAX 200 airplanes from Vietjet during the quarter. The 737 MAX development program is progressing smoothly and entry into service is being accelerated.

Commercial Airplanes booked 152 net orders during the quarter. Backlog remains strong with nearly 5,700 airplanes valued at $417 billion.

Defense, Space & Security

Table 5. Defense, Space & Security

Second Quarter

First Half

(Dollars in Millions)

2016

2015

Change

2016

2015

Change

Revenues1

Boeing Military Aircraft

$2,979

$3,474

(14)%

$6,638

$6,200

7%

Network & Space Systems

$1,810

$1,938

(7)%

$3,545

$3,670

(3)%

Global Services & Support

$2,385

$2,132

12%

$4,947

$4,383

13%

Total BDS Revenues

$7,174

$7,544

(5)%

$15,130

$14,253

6%

Earnings from Operations1

Boeing Military Aircraft

$175

$121

45%

$509

$380

34%

Network & Space Systems

$153

$151

1%

$301

$318

(5)%

Global Services & Support

$265

$274

(3)%

$605

$591

2%

Total BDS Earnings from Operations

$593

$546

9%

$1,415

$1,289

10%

Operating Margin

8.3%

7.2%

1.1 Pts

9.4%

9.0%

0.4 Pts

1

During the first quarter of 2016, certain programs were realigned between Boeing Military Aircraft and Global Services & Support.

Defense, Space & Security’s second-quarter revenue was $7.2 billion. Second-quarter operating margin was 8.3 percent, reflecting the previously announced $219 million pre-tax charge recorded at Boeing Military Aircraft on the KC-46 Tanker program (Table 5).

Boeing Military Aircraft (BMA) second-quarter revenue was $3.0 billion, reflecting lower planned C-17 and Chinook deliveries. Operating margin was 5.9 percent, reflecting the KC-46 Tanker charge. During the quarter, BMA was awarded contracts for 24 Apache and 12 Chinook helicopters.

Network & Space Systems (N&SS) second-quarter revenue was $1.8 billion. Operating margin increased to 8.5 percent, reflecting performance and timing on United Launch Alliance launches.

Global Services & Support (GS&S) second-quarter revenue increased to $2.4 billion, reflecting higher volume in Aircraft Modernization & Sustainment. Operating margin was 11.1 percent largely reflecting contract mix.

Backlog at Defense, Space & Security was $55 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)

2016

2015

2016

2015

Revenues

Boeing Capital

$84

$115

$148

$201

Unallocated items, eliminations and other

$41

$7

$254

($20)

Earnings from Operations

Boeing Capital

$18

$11

$23

$31

Unallocated pension/postretirement

$69

($30)

$163

($143)

Other unallocated items and eliminations

($126)

($50)

($292)

($298)

Other income, net

$13

$15

$39

$3

Interest and debt expense

($73)

($75)

($146)

($136)

Effective tax rate

51.1%

31.6%

21.9%

31.5%

At quarter-end, Boeing Capital’s net portfolio balance was $3 billion, down from the beginning of the quarter. Total pension expense for the second quarter was $463 million, down from $523 million in the same period of the prior year. Other unallocated items and eliminations decreased from the same period in the prior year primarily due to higher deferred compensation expense and elimination of intercompany profit. The effective tax rate for the second quarter was increased from the same period in the prior year primarily due to lower pre-tax income. During the quarter, the company adopted a new accounting standard for share-based compensation payments which resulted in a $54 million tax benefit ($0.08 per share).

Outlook

The company’s 2016 updated financial and delivery guidance (Table 7) reflects the impact of the 787 R&D reclassification and the 747 and Tanker charges, solid performance and tax benefits.

Table 7. 2016 Financial Outlook

Current

Prior

(Dollars in Billions, except per share data)

Guidance

Guidance

The Boeing Company

Revenue

$93.0 – 95.0

$93.0 – 95.0

GAAP Earnings Per Share

$6.40 – 6.60

$8.45 – 8.65

Core Earnings Per Share*

$6.10 – 6.30

$8.15 – 8.35

Operating Cash Flow

~$10.0

~$10.0

Commercial Airplanes

Deliveries

740 – 745

740 – 745

Revenue

$64.0 – 65.0

$64.0 – 65.0

Operating Margin

4.5% – 5.0

~9.0%

Defense, Space & Security

Revenue

Boeing Military Aircraft

~$12.3

~$12.3

Network & Space Systems

~$7.3

~$7.3

Global Services & Support

~$9.4

~$9.4

Total BDS Revenue

$28.5 – 29.5

$28.5 – 29.5

Operating Margin

Boeing Military Aircraft

~9.5%

~10.0%

Network & Space Systems

~9.0%

~9.0%

Global Services & Support

~12.0%

~11.5%

Total BDS Operating Margin

>10.0%

>10.0%

Boeing Capital

Portfolio Size

Stable

Stable

Revenue

~$0.3

~$0.3

Pre-Tax Earnings

~$0.05

~$0.05

Research & Development

~ $4.8

~ $3.6

Capital Expenditures

~ $2.8

~ $2.8

Pension Expense 1

~ $2.1

~ $2.1

Effective Tax Rate

~ 23.0%

~ 30.0%

1 

Approximately ($0.1) billion is expected to be recorded in unallocated items and eliminations

Non-GAAP measures. Complete definitions of Boeing’s non-GAAP measures are on page 7, “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/(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 post-retirement 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 ofunallocated pension and post-retirement expense. Unallocated pension and post-retirement expense represents the portion of pension and other post-retirement costs that are not recognized by business segments for segment reporting purposes. Pension costs, comprising service and prior service costs computed in accordance with Generally Accepted Accounting Principles in the United States of America (GAAP) are allocated to Commercial Airplanes. Pension costs allocated to BDS segments are computed in accordance with U.S. Government Cost Accounting Standards (CAS), which employ different actuarial assumptions and accounting conventions than GAAP. CAS costs are allocable to government contracts. Other postretirement benefit costs are allocated to all business segments based on CAS, which is generally based on benefits paid. Management uses core operating earnings, core operating margin and core earnings per share for purposes of evaluating and forecasting underlying business performance. Management believes these core earnings measures provide investors additional insights into operational performance as they exclude unallocated pension and post-retirement costs, which primarily represent costs driven by market factors and costs not allocable to government contracts. A reconciliation between the GAAP and non-GAAP measures is provided on page 14.

Commercial Airplanes Operating Margin Excluding the Reclassification and Charges

Commercial Airplanes GAAP operating margin for the three months ended June 30, 2016 includes research and development expense of $1,235 million related to the reclassification of costs associated with two 787 flight test aircraft from program inventory, a reach-forward loss on the 747 program of $1,188 million, and a reach-forward loss recorded at Commercial Airplanes on the KC-46 Tanker program of $354 million. Management uses Commercial Airplanes operating margin excluding the reclassification and charges for the purpose of evaluating underlying business performance for the three months ended June 30, 2016. Management believes that this measure also helps investors assess overall trends in our operational performance and provide additional context for year over year financial results. A reconciliation between the GAAP and non-GAAP measures is provided on page 14.

Free Cash Flow

Free cash flow is defined as GAAP operating cash flow without capital expenditures for property, plant and equipment additions. Management believes free cash flow provides investors with an important perspective on the cash available for shareholders, debt repayment, and acquisitions after making the capital investments required to support ongoing business operations and long term value creation. Free cash flow does not represent the residual cash flow available for discretionary expenditures as it excludes certain mandatory expenditures such as repayment of maturing debt. Management uses free cash flow as a measure to assess both business performance and overall liquidity. Table 2 provides a reconciliation between GAAP operating cash flow and free cash flow.

Caution Concerning Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “should,” “expects,” “intends,” “projects,” “plans,” “believes,” “estimates,” “targets,” “anticipates,” and similar expressions are used to identify these forward-looking statements. Examples of forward-looking statements include statements relating to our future financial condition and operating results, as well as any other statement that does not directly relate to any historical or current fact. Forward-looking statements are based on our current expectations and assumptions, which may not prove to be accurate. These statements are not guarantees and are subject to risks, uncertainties, and changes in circumstances that are difficult to predict. Many factors could cause actual results to differ materially and adversely from these forward-looking statements. Among these factors are risks related to: (1) general conditions in the economy and our industry, including those due to regulatory changes; (2) our reliance on our commercial airline customers; (3) the overall health of our aircraft production system, planned production rate increases across multiple commercial airline programs, our commercial development and derivative aircraft programs, and our aircraft being subject to stringent performance and reliability standards; (4) changing budget and appropriation levels and acquisition priorities of the U.S. government; (5) our dependence on U.S. government contracts; (6) our reliance on fixed-price contracts; (7) our reliance on cost-type contracts; (8) uncertainties concerning contracts that include in-orbit incentive payments; (9) our dependence on our subcontractors and suppliers, as well as the availability of raw materials, (10) changes in accounting estimates; (11) changes in the competitive landscape in our markets; (12) our non-U.S. operations, including sales to non-U.S. customers; (13) potential adverse developments in new or pending litigation and/or government investigations; (14) customer and aircraft concentration in Boeing Capital’s customer financing portfolio; (15) changes in our ability to obtain debt on commercially reasonable terms and at competitive rates in order to fund our operations and contractual commitments; (16) realizing the anticipated benefits of mergers, acquisitions, joint ventures/strategic alliances or divestitures; (17) the adequacy of our insurance coverage to cover significant risk exposures; (18) potential business disruptions, including those related to physical security threats, information technology or cyber-attacks, epidemics, sanctions or natural disasters; (19) work stoppages or other labor disruptions; (20) significant changes in discount rates and actual investment return on pension assets; (21) potential environmental liabilities; and (22) threats to the security of our or our customers’ information.

Additional information concerning these and other factors can be found in our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Any forward-looking statement speaks only as of the date on which it is made, and we assume no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law.

Contact:

Investor Relations:

Troy Lahr or Ben Hackman (312) 544-2140

Communications:

Bernard Choi (312) 544-2002

 

The Boeing Company and Subsidiaries

Consolidated Statements of Operations

(Unaudited)

Six months ended
June 30

Three months ended
June 30

(Dollars in millions, except per share data)

2016

2015

2016

2015

Sales of products

$42,069

$41,408

$22,184

$21,923

Sales of services

5,318

5,284

2,571

2,620

Total revenues

47,387

46,692

24,755

24,543

Cost of products

(37,210)

(35,627)

(20,265)

(19,247)

Cost of services

(4,180)

(4,186)

(2,044)

(2,086)

Boeing Capital interest expense

(32)

(33)

(16)

(17)

Total costs and expenses

(41,422)

(39,846)

(22,325)

(21,350)

5,965

6,846

2,430

3,193

Income from operating investments, net

151

129

97

50

General and administrative expense

(1,694)

(1,705)

(806)

(760)

Research and development expense, net

(3,044)

(1,569)

(2,127)

(800)

(Loss)/gain on dispositions, net

(9)

1

(13)

Earnings/(loss) from operations

1,369

3,702

(419)

1,683

Other income, net

39

3

13

15

Interest and debt expense

(146)

(136)

(73)

(75)

Earnings/(loss) before income taxes

1,262

3,569

(479)

1,623

Income tax (expense)/benefit

(277)

(1,123)

245

(513)

Net earnings/(loss)

$985

$2,446

($234)

$1,110

Basic earnings/(loss) per share

$1.52

$3.50

($0.37)

$1.61

Diluted earnings/(loss) per share

$1.51

$3.46

($0.37)

$1.59

Cash dividends paid per share

$2.18

$1.82

$1.09

$0.91

Weighted average diluted shares (millions)

654.9

706.6

636.3

**

698.9

**

As a result of incurring a net loss for the three months ended June 30, 2016, potential common shares of 6.7 million were excluded from diluted earnings per share.

 

The Boeing Company and Subsidiaries

Consolidated Statements of Financial Position

(Unaudited) 

(Dollars in millions, except per share data)

June 30
2016

December 31
2015

Assets

Cash and cash equivalents

$8,605

$11,302

Short-term and other investments

660

750

Accounts receivable, net

9,809

8,713

Current portion of customer financing, net

251

212

Inventories, net of advances and progress billings

44,182

47,257

Total current assets

63,507

68,234

Customer financing, net

2,909

3,358

Property, plant and equipment, net of accumulated depreciation of $16,641 and $16,286

12,533

12,076

Goodwill

5,128

5,126

Acquired intangible assets, net

2,544

2,657

Deferred income taxes

267

265

Investments

1,312

1,284

Other assets, net of accumulated amortization of $451 and $451

1,409

1,408

Total assets

$89,609

$94,408

Liabilities and equity

Accounts payable

$11,748

$10,800

Accrued liabilities

13,534

14,014

Advances and billings in excess of related costs

23,409

24,364

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

1,168

1,234

Total current liabilities

49,859

50,412

Deferred income taxes

2,422

2,392

Accrued retiree health care

6,586

6,616

Accrued pension plan liability, net

18,200

17,783

Other long-term liabilities

2,048

2,078

Long-term debt

9,847

8,730

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

4,778

4,834

Treasury stock, at cost – 386,402,793 and 345,637,354 shares

(34,821)

(29,568)

Retained earnings

38,362

38,756

Accumulated other comprehensive loss

(12,795)

(12,748)

Total shareholders’ equity

585

6,335

Noncontrolling interests

62

62

Total equity

647

6,397

Total liabilities and equity

$89,609

$94,408

 

The Boeing Company and Subsidiaries

Consolidated Statements of Cash Flows

(Unaudited)

Six months ended
June 30

(Dollars in millions)

2016

2015

Cash flows – operating activities:

Net earnings/(loss)

$985

$2,446

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

Non-cash items – 

Share-based plans expense

97

94

Depreciation and amortization

890

912

Investment/asset impairment charges, net

50

74

Customer financing valuation benefit

(4)

(5)

Gain/(loss) on dispositions, net

9

(1)

Other charges and credits, net

141

140

Excess tax benefits from share-based payment arrangements

(124)

Changes in assets and liabilities – 

Accounts receivable

(503)

(313)

Inventories, net of advances and progress billings

3,004

(2,395)

Accounts payable

1,221

888

Accrued liabilities

(269)

(177)

Advances and billings in excess of related costs

(954)

195

Income taxes receivable, payable and deferred

(494)

482

Other long-term liabilities

(103)

(17)

Pension and other postretirement plans

181

1,244

Customer financing, net

275

19

Other

(61)

(77)

  Net cash provided by operating activities

4,465

3,385

Cash flows – investing activities:

Property, plant and equipment additions

(1,419)

(1,266)

Property, plant and equipment reductions

13

20

Acquisitions, net of cash acquired

(23)

Contributions to investments

(657)

(1,205)

Proceeds from investments

705

2,040

Other

8

22

  Net cash used by investing activities

(1,350)

(412)

Cash flows – financing activities:

New borrowings

1,323

761

Debt repayments

(267)

(846)

Stock options exercised

147

276

Excess tax benefits from share-based payment arrangements

124

Employee taxes on certain share-based payment arrangements

(79)

(90)

Common shares repurchased

(5,501)

(4,501)

Dividends paid

(1,408)

(1,264)

Other

(24)

  Net cash used by financing activities

(5,809)

(5,540)

Effect of exchange rate changes on cash and cash equivalents

(3)

(9)

Net decrease in cash and cash equivalents

(2,697)

(2,576)

Cash and cash equivalents at beginning of year

11,302

11,733

Cash and cash equivalents at end of period

$8,605

$9,157

 

The Boeing Company and Subsidiaries

Summary of Business Segment Data

(Unaudited)

Six months ended
June 30

Three months ended
June 30

(Dollars in millions)

2016

2015

2016

2015

Revenues:

Commercial Airplanes

$31,855

$32,258

$17,456

$16,877

Defense, Space & Security:

Boeing Military Aircraft

6,638

6,200

2,979

3,474

Network & Space Systems

3,545

3,670

1,810

1,938

Global Services & Support

4,947

4,383

2,385

2,132

Total Defense, Space & Security

15,130

14,253

7,174

7,544

Boeing Capital

148

201

84

115

Unallocated items, eliminations and other

254

(20)

41

7

Total revenues

$47,387

$46,692

$24,755

$24,543

Earnings/(loss) from operations:

Commercial Airplanes

$60

$2,823

($973)

$1,206

Defense, Space & Security:

Boeing Military Aircraft

509

380

175

121

Network & Space Systems

301

318

153

151

Global Services & Support

605

591

265

274

Total Defense, Space & Security

1,415

1,289

593

546

Boeing Capital

23

31

18

11

Segment operating profit/(loss)

1,498

4,143

(362)

1,763

Unallocated items, eliminations and other

(129)

(441)

(57)

(80)

Earnings/(loss) from operations

1,369

3,702

(419)

1,683

Other income, net

39

3

13

15

Interest and debt expense

(146)

(136)

(73)

(75)

Earnings/(loss) before income taxes

1,262

3,569

(479)

1,623

Income tax (expense)/benefit

(277)

(1,123)

245

(513)

Net earnings/(loss)

$985

$2,446

($234)

$1,110

Research and development expense, net:

Commercial Airplanes

$2,548

$1,097

$1,877

$554

Defense, Space & Security

521

474

263

250

Other

(25)

(2)

(13)

(4)

Total research and development expense, net

$3,044

$1,569

$2,127

$800

Unallocated items, eliminations and other:

Share-based plans

($41)

($37)

($18)

($16)

Deferred compensation

(5)

(48)

(21)

10

Amortization of previously capitalized interest

(48)

(49)

(18)

(20)

Eliminations and other unallocated items

(198)

(164)

(69)

(24)

Sub-total (included in core operating earnings)

(292)

(298)

(126)

(50)

Pension

79

(209)

34

(57)

Postretirement

84

66

35

27

Total unallocated items, eliminations and other

($129)

($441)

($57)

($80)

 

The Boeing Company and Subsidiaries

Operating and Financial Data

(Unaudited)

Deliveries

Six months ended
June 30

Three months ended
June 30

Commercial Airplanes

2016

2015

2016

2015

737

248

249

127

128

747

3

9

2

5

767

5

9

4

4

777

51

50

28

26

787

68

64

38

34

Total

375

381

199

197

Note: Deliveries under operating lease are identified by parentheses.

Defense, Space & Security

Boeing Military Aircraft

AH-64 Apache (New)

15

12

8

6

AH-64 Apache (Remanufactured)

18

23

7

13

C-17 Globemaster III

4

3

1

2

CH-47 Chinook (New)

10

21

7

15

CH-47 Chinook (Renewed)

16

5

7

1

F-15 Models

7

5

3

4

F/A-18 Models

14

20

6

9

P-8 Models

9

6

5

4

Global Services & Support

AEW&C

C-40A

1

Network & Space Systems

Commercial and Civil Satellites

1

1

1

Military Satellites

1

1

1

1

Contractual backlog (Dollars in billions)

June 30
2016

December 31
2015

Commercial Airplanes

$416.6

$431.4

Defense, Space & Security:

Boeing Military Aircraft

22.6

19.9

Network & Space Systems

6.9

7.4

Global Services & Support

16.9

17.9

Total Defense, Space & Security

46.4

45.2

Total contractual backlog

$463.0

$476.6

Unobligated backlog

$9.2

$12.7

Total backlog

$472.2

$489.3

Workforce

158,100

161,400

 

The Boeing Company and Subsidiaries

Reconciliation of Non-GAAP Measures

(Unaudited)

The tables provided below reconcile the non-GAAP financial measures core operating earnings, core operating margin, core earnings per share, and Commercial Airplanes operating margin excluding the reclassification and charges with the most directly comparable GAAP financial measures, earnings from operations, operating margin, diluted earnings per share and Commercial Airplanes operating margin. See page 7 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

2016

2015

2016

2015

2016

Revenues

$24,755

$24,543

$47,387

$46,692

GAAP Earnings/(Loss) From Operations

($419)

$1,683

$1,369

$3,702

Increase/(Decrease) in GAAP Earnings From Operations

(125%)

(63%)

GAAP Operating Margin

(1.7%)

6.9%

2.9%

7.9%

Unallocated Pension (Income)/Expense

($34)

$57

($79)

$209

Unallocated Other Postretirement Benefit Income

($35)

($27)

($84)

($66)

Unallocated Pension and Other Postretirement Benefit (Income)/Expense

($69)

$30

($163)

$143

~($300)

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

($488)

$1,713

$1,206

$3,845

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

(128%)

(69%)

Core Operating Margin (non-GAAP)

(2.0%)

7.0%

2.5%

8.2%

GAAP Diluted Earnings/(Loss) Per Share

($0.37)

$1.59

$1.51

$3.46

$6.40 – $6.60

Unallocated Pension (Income)/Expense

($0.05)

$0.09

($0.12)

$0.29

Unallocated Postretirement Benefit (Income)/Expense

($0.06)

($0.04)

($0.13)

($0.09)

($0.30)

Provision for deferred income taxes on adjustments (1)

$0.04

($0.02)

$0.09

($0.07)

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

($0.44)

$1.62

$1.35

$3.59

$6.10 – $6.30

Weighted Average Diluted Shares (millions)

636.3

**

698.9

654.9

706.6

645 – 650

Increase/(Decrease) in GAAP Earnings Per Share

(123%)

(56%)

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

(127%)

(62%)

Commercial Airplanes Revenues

$17,456

GAAP Commercial Airplanes Earnings/(Loss) from Operations

($973)

GAAP Commercial Airplanes Operating margin

(5.6%)

Cost reclassification of two 787 flight test aircraft

$1,235

Reach-forward loss on 747 program

$1,188

Reach-forward loss at Commercial Airplanes on KC-46 Tanker program

$354

Commercial Airlines Earnings from Operations excluding the reclassification and charges (non-GAAP)

$1,804

Commercial Airplanes operating margin excluding the reclassification and charges (non-GAAP)

10.3%

(1)

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

**

As a result of incurring a net loss for the three months ended June 30, 2016, potential common shares of 6.7 million were excluded from diluted earnings per share.

 

SOURCE : Boeing Website

Boeing and Malaysia Airlines Announce Order for up to 50 737 MAX Airplanes

Order for 25 737 MAX 8s, purchase rights for additional 737 MAX 8s and MAX 9s — Newest Boeing model to drive national carrier’s fleet, growth plan

KUALA LUMPUR, Malaysia, July 27, 2016 – Boeing [NYSE: BA] and Malaysia Airlines Berhad (Malaysia Airlines) announced today an order for 25 737 MAX 8 airplanes, valued at $2.75 billion dollars at current list prices. The order, previously attributed to an unidentified customer on the Boeing Orders & Deliveries website, also includes purchase rights for additional 737 MAX 8 and 737 MAX 9 airplanes.

“This deal is a game-changer for Malaysia Airlines with much lower costs and greater efficiency which we will pass on to our loyal customers with lower fares,” said Malaysia Airlines Chief Executive Officer Peter Bellew. “With the 737 MAX’s longer range capabilities, we will be able to connect our passengers to more destinations, in greater comfort and with superior economics.”

The Malaysian national carrier has operated almost every derivative of the 737 airplane family and took delivery of its 100th 737 in December 2014. Malaysia Airlines currently operates 56 737-800s.

“The 737 MAX will continue the superior operating economics and reliability of the 737 that Malaysia Airlines has depended on for more than 40 years,” said Dinesh Keskar, senior vice president, Asia Pacific & India Sales, Boeing Commercial Airplanes. “We are honored to continue our long partnership with Malaysia Airlines and welcome them to the growing 737 MAX family.”

“Malaysia Airlines is now on a path to growth across the Asean region,” said Bellew. “This new aircraft order will set the stage for our continued recovery and success into the next decade.”

The 737 MAX will deliver 20 percent lower fuel use than the first Next-Generation 737s and the lowest operating costs in its class – 8 percent per seat less than its nearest competitor. The new single-aisle airplane incorporates the latest technology CFM International LEAP-1B engines, Advanced Technology winglets and other improvements to deliver the highest efficiency, reliability and passenger comfort in the single-aisle market.

About Malaysia Airlines

Malaysia Airlines is the national carrier of Malaysia, offering the best way to fly to, from and around Malaysia. Among the few airlines to have won both a Skytrax five-star rating and World’s Best Cabin Crew award, Malaysia Airlines takes our 40,000 guests daily on memorable journeys inspired by Malaysia’s diverse richness.

Malaysia Airlines embodies the incredible diversity of Malaysia, capturing its rich traditions, cultures, cuisines and warm hospitality on board, while opening up more of Malaysia’s destinations than any other airline.

Since September 2015, the airline has been owned and operated by Malaysia Airlines Berhad. As a member of oneworld®, Malaysia Airlines and its partners in the global alliance offer a superior, seamless travel experience to more than 1,000 destinations in 150 plus countries, with special privileges and rewards for frequent flyers, including access to more than 650 airport lounges worldwide. Up to 90 destinations will be serviced across Asia, Africa, the Americas and the Middle East via a new codeshare partnership with Emirates, signed in early 2016.

For further information: Contacts: Joanna Pickup (Seattle) International Communications Boeing Commercial Airplanes +1 425-879-6077 joanna.pickup@boeing.com; Faridah Hashim Group Corporate Communications Malaysia Airlines Berhad +60 19 2124420 faridah.hashim@malaysiaairlines.com

Source : Boeing Website

Boeing Debuts 737 MAX Flight Demonstration Video at Oshkosh Air Show

Boeing Debuts 737 MAX Flight Demonstration Video at Oshkosh Air Show

OSHKOSH, Wis., July 26, 2016 – Boeing (NYSE: BA) today released the 2016 737 MAX Flight Demonstration video at EAA AirVenture in Oshkosh. The video highlights the MAX’s handling characteristics, short field takeoff capability and high-banking turns. The video was captured in Moses Lake, Wash., as pilots practiced the MAX flight demonstration performed at the Farnborough International Airshow earlier this month.

OSHKOSH, Wis., July 26, 2016 – Boeing (NYSE: BA) today released the 2016 737 MAX Flight Demonstration video at EAA AirVenture in Oshkosh. The video highlights the MAX’s handling characteristics, short field takeoff capability and high-banking turns.

The video was captured in Moses Lake, Wash., as Capts. Mike Bryan, Greg McCann and Chris Dobb, Boeing test pilots, practiced the flight demonstration performed at the Farnborough International Airshow earlier this month.

The 737 MAX incorporates the latest technology CFM International LEAP-1B engines, Advanced Technology winglets and other improvements to deliver the highest efficiency, reliability and passenger comfort in the single-aisle market.

The new single-aisle airplane will deliver 20 percent lower fuel use than the first Next-Generation 737s and the lowest operating costs in its class – 8 percent per seat less than its nearest competitor. To date, the 737 MAX has accumulated 3,266 orders from 68 customers.

Boeing Website

Boeing and Bastion Collaborate under NASA Small Business Development Program

Houston-based, minority-owned company to receive training and other business guidance

KENNEDY SPACE CENTER, Fla., July 26, 2016 – Boeing [NYSE: BA] and Houston-based Bastion Technologies, Inc., a Boeing supplier for almost 20 years, have signed an agreement under a NASA program to help grow Bastion’s expertise and opportunities in the aerospace market.

Bastion was chosen because of its quality work history on Boeing programs and its ongoing growth potential as both a Boeing supplier and a standalone NASA contractor.

Called the Mentor-Protégé Program, the initiative encourages NASA prime contractors (mentors) to help small businesses (protégés) develop expertise needed to perform NASA work, growing and diversifying the agency’s supplier base.

During the next 18 months, Boeing and Bastion Technologies will share best practices in areas such as manufacturing, quality, marketing and business development.

“Bastion is an excellent example of how Boeing and small businesses can collaborate and grow as teammates and as individual companies,” said John Mulholland, vice president and program manager, Boeing Commercial Programs. “Through Mentor-Protégé, we’ll accelerate our common support of NASA’s critical work advancing human spaceflight capabilities.”

“We have cherished our relationship with Boeing, which began with our work on the digital pre-assembly of the International Space Station to our work on today’s CST-100 Starliner program,” said Jorge Hernandez, president, Bastion Technologies. “We look forward to many more years of cutting-edge work with Boeing and strengthening our aerospace ties through this mentorship program.”

Boeing, one of 26 NASA prime contractors serving as mentors, commits considerable resources toward supporting and developing its supplier network. The company committed more than $5 billion to contracts with small and diverse businesses in 2015.

Bastion is a certified small, minority-owned engineering and scientific services company headquartered in Houston. Its products and services include mechanical, electrical and structural design and analysis, systems engineering, information technology and safety and mission assurance services. Bastion’s support to the Starliner program will provide the company a considerable foundation in the Houston and Florida communities.

In 2016 Boeing celebrates 100 years of pioneering aviation accomplishments and launches its second century as an innovative, customer-focused aerospace technology and capabilities provider, community partner and preferred employer. Through its Defense, Space & Security unit, Boeing is a global leader in this marketplace and is the world’s largest and most versatile manufacturer of military aircraft. Headquartered in St. Louis, Defense, Space & Security is a $30 billion business with about 50,000 employees worldwide. Follow us on Twitter @BoeingDefense and Instagram @Boeing.

# # #

Contacts:

Rebecca Regan
Defense, Space & Security
Office: +1 321-360-3663
Mobile: +1 321-607-2297
rebecca.a.regan@boeing.com

Jayant Ramakrishnan, COO
Bastion Technologies, Inc.
Office: +1 281-283-9390
Mobile: +1 281-627-1946
jramakrishnan@bastiontechnologies.com

 

Source : Boeing Website

Band tira “Brasil Urgente” do ar para ter Datena na Olimpíada

Datena será um dos narradores da Band na Olímpiada

Datena será um dos narradores da Band na Olímpiada

O “Brasil Urgente” não será apresentado pela Bandeirantes durante todo o período dos Jogos Olímpicos.

O horário do programa irá coincidir com algumas das mais importantes competições e só irá retornar ao vivo no dia 22 de agosto.

José Luiz Datena, por sua vez, foi novamente convocado para reforçar o departamento de esportes da Band nas transmissões da Olimpíada.

Integrado à equipe, ele irá se juntar aos demais companheiros no Rio a partir de quarta-feira e dividir as narrações dos principais acontecimentos com Téo José e Oliveira Andrade.

 

Flávio Ricco com colaboração de José Carlos Nery

Cebu Pacific places order for two A330-300s

Reflecting success of Airbus widebody on carrier’s long haul low fare routes

29 JULY 2016 PRESS RELEASE

Manila-based Cebu Pacific has placed a firm order with Airbus for two A330-300s. The aircraft will join an existing fleet of six A330s flying with the airline on long range flights to destinations in the Middle East and Australia, as well on selected domestic and regional routes.

“The A330 has proven to be the right choice for our long haul low fare product,” said Lance Gokongwei, Cebu Pacific President and Chief Executive Officer. “The newly ordered aircraft will enable us to add more long haul routes, including the launch of our first flights to the US. We are excited to be expanding our widebody fleet, offering more low fare options for our customers to fly further than ever before.”

“This order from Cebu Pacific is another endorsement of the unrivalled efficiency of the A330 for profitable long haul low cost services,” said John Leahy, Airbus Chief Operating Officer Customers. “Combining low operating costs, proven reliability and a great passenger experience, the A330 is the clear preferred choice of airlines in this competitive market segment. We are looking forward to working with Cebu Pacific as it grows its long haul services and flies to more destinations across the world.”

Cebu Pacific currently operates 49 Airbus aircraft, including six A330s and a fleet of 43 A320 Family single aisle aircraft flying on its extensive domestic and regional network. In addition to the contract announced today, the airline has 32 latest generation A321neo aircraft on order for future delivery.

The A330 is one of the most popular widebody aircraft ever, having now won over 1,600 orders. Today, over 1,300 aircraft are flying with some 120 airlines worldwide on a wide range of routes, from domestic and regional flights to long range intercontinental services of up to 13 hours. Offering the lowest operating costs in its category, and thanks to continuous investment and innovations, the A330 is the most profitable and best performing aircraft in its class.

Airbus Website