Boeing Reports Third-Quarter Results and Raises Full Year Guidance

CHICAGO, Oct. 26, 2016 /PRNewswire/ —

  • Strong operating cash flow of $3.2 billion; repurchased 7.6 million shares for $1.0 billion
  • GAAP EPS of $3.60 and core EPS (non-GAAP)* of $3.51 on solid execution and tax items
  • Revenue of $23.9 billion on timing of aircraft deliveries
  • Backlog remains robust at $462 billion with more than 5,600 commercial airplane orders
  • Cash and marketable securities of $9.7 billion provide strong liquidity
  • 2016 revenue guidance increased $500 million on higher deliveries
  • 2016 GAAP EPS and core EPS (non-GAAP)* guidance increased $0.70 for additional tax adjustment

Table 1. Summary Financial
Results

Third Quarter

Nine months

(Dollars in Millions, except per share data)

2016

2015

Change

2016

2015

Change

Revenues

$23,898

$25,849

(8)%

$71,285

$72,541

(2)%

GAAP

Earnings From Operations

$2,282

$2,580

(12)%

$3,651

$6,282

(42)%

Operating Margin

9.5%

10.0%

(0.5) Pts

5.1%

8.7%

(3.6) Pts

Net Earnings

$2,279

$1,704

34%

$3,264

$4,150

(21)%

Earnings Per Share

$3.60

$2.47

46%

$5.04

$5.92

(15)%

Operating Cash Flow

$3,202

$2,859

12%

$7,667

$6,244

23%

Non-GAAP*

Core Operating Earnings

$2,194

$2,637

(17)%

$3,400

$6,482

(48)%

Core Operating Margin

9.2%

10.2%

(1.0) Pts

4.8%

8.9%

(4.1) Pts

Core Earnings Per Share

$3.51

$2.52

39%

$4.79

$6.11

(22)%

* Non-GAAP measures. Complete definitions of Boeing’s non-GAAP measures are on page 6, “Non-GAAP Measures Disclosures.”     

 

The Boeing Company [NYSE: BA] reported third-quarter GAAP earnings per share of $3.60 and core earnings per share (non-GAAP)* of $3.51 reflecting overall solid execution on production programs and services, favorable tax items ($0.98 per share), and timing of aircraft deliveries (Table 1).

Revenue guidance has been increased $500 million to between $93.5 and $95.5 billion on higher commercial deliveries. GAAP earnings per share guidance for 2016 has been increased to between $7.10 and $7.30 from $6.40 and $6.60 and core earnings per share (non-GAAP)* guidance has been increased to between $6.80 and $7.00 from $6.10 and $6.30 to reflect a favorable $0.70 per share tax basis adjustment. The third quarter favorable tax adjustment for a 2011-2012 tax settlement of $0.28 per share was previously announced in the second quarter of 2016 and was reflected in prior guidance.

“Solid operating performance across our commercial and defense and space businesses in the third quarter again generated strong cash flow for Boeing, which continues to fuel investments in our future and enable us to deliver compelling returns to our shareholders,” said Chairman, President and Chief Executive Officer Dennis Muilenburg. “We also captured key orders, reinforcing the strength of our large and diverse order backlog.”

“We achieved key milestones on the 737 MAX, 787-10 and other development programs, including the first KC-46 production contracts. Our teams remain focused on completing these development efforts and delivering better capabilities and economics to customers around the world.”

“We remain on track to deliver on our full-year commitments. At the same time, we are positioning Boeing for further growth through our intense focus on productivity, quality and safety across the company.”

Table 2. Cash Flow

Third Quarter

Nine months

(Millions)

2016

2015

2016

2015

Operating Cash Flow

$3,202

$2,859

$7,667

$6,244

Less Additions to Property, Plant & Equipment

($595)

($561)

($2,014)

($1,827)

Free Cash Flow*

$2,607

$2,298

$5,653

$4,417

* Non-GAAP measures. Complete definitions of Boeing’s non-GAAP measures are on page 6, “Non-GAAP Measures Disclosures.”     

 

Operating cash flow in the quarter was $3.2 billion, reflecting solid operating performance (Table 2). During the quarter, the company repurchased 7.6 million shares for $1.0 billion, leaving $7.5 billion remaining under the current repurchase authorization. The company also paid $0.7 billion in dividends in the quarter, reflecting an approximately 20 percent increase in dividends per share compared to the same period of the prior year.

Table 3. Cash, Marketable Securities and Debt Balances

Quarter-End

(Billions)

Q3 16

Q2 16

Cash

$9.0

$8.6

Marketable Securities1

$0.7

$0.7

Total

$9.7

$9.3

Debt Balances:

The Boeing Company, net of intercompany loans to BCC

$8.1

$8.7

Boeing Capital, including intercompany loans

$2.4

$2.3

Total Consolidated Debt

$10.5

$11.0

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

 

Cash and investments in marketable securities totaled $9.7 billion, up from $9.3 billion at the beginning of the quarter. Debt was $10.5 billion, down from the beginning of the quarter, due to repayment of debt (Table 3).

Total company backlog at quarter-end was $462 billion, down from $472 billion at the beginning of the quarter, and included net orders for the quarter of $15 billion.

Segment Results

Commercial Airplanes

Table 4. Commercial Airplanes

Third Quarter

Nine months

(Dollars in Millions)

2016

2015

Change

2016

2015

Change

Commercial Airplanes Deliveries

188

199

(6)%

563

580

(3)%

Revenues

$16,973

$17,692

(4)%

$48,828

$49,950

(2)%

Earnings from Operations

$1,597

$1,768

(10)%

$1,657

$4,591

(64)%

Operating Margin

9.4%

10.0%

(0.6) Pts

3.4%

9.2%

(5.8) Pts

 

Commercial Airplanes third-quarter revenue decreased to $17.0 billion on lower planned delivery volume (Table 4). Third-quarter operating margin was 9.4 percent, reflecting delivery volume and mix, partially offset by lower period costs.

During the quarter, we began production of the 500th 787 Dreamliner, completed service ready validation of the 737 MAX 8, and began production of the 737 MAX 9. The 737 program has captured more than 3,300 orders for the 737 MAX since launch and the company remains on track to raise the production rate to 47 per month in the third quarter of 2017. During the quarter, we continued to grow our services business through an agreement with Japan Airlines to provide spare parts solutions.

Commercial Airplanes booked 107 net orders during the quarter. Backlog remains strong with more than 5,600 airplanes valued at $409 billion.

Defense, Space & Security

Table 5. Defense, Space & Security

Third Quarter

Nine months

(Dollars in Millions)

2016

2015

Change

2016

2015

Change

Revenues1

Boeing Military Aircraft

$3,260

$4,037

(19)%

$9,898

$10,237

(3)%

Network & Space Systems

$1,701

$2,127

(20)%

$5,246

$5,797

(10)%

Global Services & Support

$2,547

$2,186

17%

$7,494

$6,569

14%

Total BDS Revenues

$7,508

$8,350

(10)%

$22,638

$22,603

Earnings from Operations1

Boeing Military Aircraft

$434

$494

(12)%

$943

$874

8%

Network & Space Systems

$35

$245

(86)%

$336

$563

(40)%

Global Services & Support

$315

$283

11%

$920

$874

5%

Total BDS Earnings from Operations

$784

$1,022

(23)%

$2,199

$2,311

(5)%

Operating Margin

10.4%

12.2%

(1.8) Pts

9.7%

10.2%

(0.5) Pts

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

 

Defense, Space & Security’s third-quarter revenue was $7.5 billion. Third-quarter operating margin was 10.4 percent, reflecting solid execution and the impact of the Commercial Crew program (Table 5).

Boeing Military Aircraft (BMA) third-quarter revenue was $3.3 billion, reflecting fewer C-17 deliveries and volume on F-15. Operating margin increased to 13.3 percent, reflecting program mix. During the quarter, BMA was awarded a contract from the U.S. Air Force for low-rate initial production of 19 KC-46 Tanker aircraft and received an agreement from the U.K. Ministry of Defence to purchase 50 Apache attack helicopters and nine P-8 Poseidon aircraft.

Network & Space Systems (N&SS) third-quarter revenue decreased to $1.7 billion with an operating margin of 2.1 percent, primarily reflecting the charge on the Commercial Crew development program. The charge includes a $124 million reversal of cumulative pre-tax earnings recorded in prior periods and a $38 million pre-tax reach-forward loss, and was largely driven by delays in completion of engineering and supply chain activities. During the quarter, N&SS announced an award for a 702MP satellite with a new digital payload offering twice the capacity of previous designs.

Global Services & Support (GS&S) third-quarter revenue increased to $2.5 billion, reflecting higher volume in Aircraft Modernization & Sustainment and Training Systems & Government Services. Operating margin was 12.4 percent largely reflecting contract mix. During the quarter, GS&S was awarded contracts from the Defense Logistics Agency for F/A-18 spare parts.

Backlog at Defense, Space & Security was $53 billion, of which 38 percent represents orders from international customers.

Additional Financial Information

Table 6. Additional Financial Information

Third Quarter

Nine months

(Dollars in Millions)

2016

2015

2016

2015

Revenues

Boeing Capital

$63

$114

$211

$315

Unallocated items, eliminations and other

($646)

($307)

($392)

($327)

Earnings from Operations

Boeing Capital

$13

$10

$36

$41

Unallocated pension/postretirement

$88

($57)

$251

($200)

Other unallocated items and eliminations

($200)

($163)

($492)

($461)

Other income/(loss), net

$2

($26)

$41

($23)

Interest and debt expense

($81)

($67)

($227)

($203)

Effective tax rate

(3.4)%

31.5%

5.8%

31.5%

 

At quarter-end, Boeing Capital’s net portfolio balance was $3.7 billion, up from the beginning of the quarter. Total pension expense for the third quarter was $453 million, down from $529 million in the same period of the prior year. Other unallocated items and eliminations revenue decreased from the same period in the prior year primarily due to the elimination of intercompany revenue for three aircraft delivered under operating leases. The effective tax rate for the third quarter decreased from the same period in the prior year primarily due to the favorable $440 million tax basis adjustment and the previously announced $177 million for the 2011-2012 tax settlement.

Outlook

The company’s 2016 updated financial and delivery guidance (Table 7) reflects higher commercial deliveries and the impact of the tax basis adjustment.

Table 7. 2016 Financial Outlook

Current

Prior

(Dollars in Billions, except per share data)

Guidance

Guidance

The Boeing Company

Revenue

$93.5 – 95.5

$93.0 – 95.0

GAAP Earnings Per Share

$7.10 – 7.30

$6.40 – 6.60

Core Earnings Per Share*

$6.80 – 7.00

$6.10 – 6.30

Operating Cash Flow

~$10.0

~$10.0

Commercial Airplanes

Deliveries

745 – 750

740 – 745

Revenue

$64.5 – 65.5

$64.0 – 65.0

Operating Margin

4.5% – 5.0

4.5% – 5.0

Defense, Space & Security

Revenue

Boeing Military Aircraft

~$12.4

~$12.3

Network & Space Systems

~$7.0

~$7.3

Global Services & Support

~$9.6

~$9.4

Total BDS Revenue

$28.5 – 29.5

$28.5 – 29.5

Operating Margin

Boeing Military Aircraft

~9.5%

~9.5%

Network & Space Systems

~7.5%

~9.0%

Global Services & Support

~12.5%

~12.0%

Total BDS Operating Margin

>10.0%

>10.0%

Boeing Capital

Portfolio Size

Stable

Stable

Revenue

~$0.3

~$0.3

Pre-Tax Earnings

~$0.05

~$0.05

Research & Development

~ $4.8

~ $4.8

Capital Expenditures

~ $2.8

~ $2.8

Pension Expense 1

~ $2.1

~ $2.1

Effective Tax Rate

~ 14.0%

~ 23.0%

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

*    Non-GAAP measures. Complete definitions of Boeing’s non-GAAP measures are on page 6, “Non-GAAP Measures Disclosures.”

 

Non-GAAP Measures Disclosures

We supplement the reporting of our financial information determined under U.S. generally accepted accounting principles (GAAP) with certain non-GAAP financial information. The non-GAAP financial information presented excludes certain significant items that may not be indicative of, or are unrelated to, results from our ongoing business operations. We believe that these non-GAAP measures provide investors with additional insight into the company’s ongoing business performance. These non-GAAP measures should not be considered in isolation or as a substitute for the related GAAP measures, and other companies may define such measures differently. We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. The following definitions are provided:

Core Operating Earnings, Core Operating Margin and Core Earnings Per Share

Core operating earnings is defined as GAAP earnings from operations excluding unallocated pension and post-retirement expense. Core operating margin is defined as core operating earnings expressed as a percentage of revenue. Core earnings per share is defined as GAAP diluted earnings per share excluding the net earnings per share impact of unallocated pension and post-retirement expense. Unallocated pension and post-retirement expense represents the portion of pension and other post-retirement costs that are not recognized by business segments for segment reporting purposes. Pension costs, comprising service and prior service costs computed in accordance with Generally Accepted Accounting Principles in the United States of America (GAAP) are allocated to Commercial Airplanes. Pension costs allocated to BDS segments are computed in accordance with U.S. Government Cost Accounting Standards (CAS), which employ different actuarial assumptions and accounting conventions than GAAP. CAS costs are allocable to government contracts. Other postretirement benefit costs are allocated to all business segments based on CAS, which is generally based on benefits paid. Management uses core operating earnings, core operating margin and core earnings per share for purposes of evaluating and forecasting underlying business performance. Management believes these core earnings measures provide investors additional insights into operational performance as they exclude unallocated pension and post-retirement costs, which primarily represent costs driven by market factors and costs not allocable to government contracts. A reconciliation between the GAAP and non-GAAP measures is provided on page 13.

Free Cash Flow

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

Caution Concerning Forward-Looking Statements

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

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

Contact:

Investor Relations:

Troy Lahr or Ben Hackman (312) 544-2140

Communications:

Bernard Choi (312) 544-2002

 

The Boeing Company and Subsidiaries

Consolidated Statements of Operations

(Unaudited)

Nine months ended
September 30

Three months ended
September 30

(Dollars in millions, except per share data)

2016

2015

2016

2015

Sales of products

$63,563

$64,408

$21,494

$23,000

Sales of services

7,722

8,133

2,404

2,849

Total revenues

71,285

72,541

23,898

25,849

Cost of products

(55,117)

(55,020)

(17,907)

(19,393)

Cost of services

(6,163)

(6,377)

(1,983)

(2,191)

Boeing Capital interest expense

(46)

(49)

(14)

(16)

Total costs and expenses

(61,326)

(61,446)

(19,904)

(21,600)

9,959

11,095

3,994

4,249

Income from operating investments, net

220

207

69

78

General and administrative expense

(2,617)

(2,594)

(923)

(889)

Research and development expense, net

(3,901)

(2,426)

(857)

(857)

(Loss)/gain on dispositions, net

(10)

(1)

(1)

Earnings from operations

3,651

6,282

2,282

2,580

Other income/(loss), net

41

(23)

2

(26)

Interest and debt expense

(227)

(203)

(81)

(67)

Earnings before income taxes

3,465

6,056

2,203

2,487

Income tax (expense)/benefit

(201)

(1,906)

76

(783)

Net earnings

$3,264

$4,150

$2,279

$1,704

Basic earnings per share

$5.09

$5.99

$3.64

$2.50

Diluted earnings per share

$5.04

$5.92

$3.60

$2.47

Cash dividends paid per share

$3.27

$2.73

$1.09

$0.91

Weighted average diluted shares (millions)

647.9

700.9

632.7

689.0

 

The Boeing Company and Subsidiaries

Consolidated Statements of Financial Position

(Unaudited) 

(Dollars in millions, except per share data)

September 30
2016

December 31

2015

Assets

Cash and cash equivalents

$8,986

$11,302

Short-term and other investments

682

750

Accounts receivable, net

9,524

8,713

Current portion of customer financing, net

365

212

Inventories, net of advances and progress billings

42,680

47,257

Total current assets

62,237

68,234

Customer financing, net

3,401

3,358

Property, plant and equipment, net of accumulated depreciation of $16,752 and $16,286

12,713

12,076

Goodwill

5,128

5,126

Acquired intangible assets, net

2,488

2,657

Deferred income taxes

265

265

Investments

1,303

1,284

Other assets, net of accumulated amortization of $470 and $451

1,415

1,408

Total assets

$88,950

$94,408

Liabilities and equity

Accounts payable

$11,968

$10,800

Accrued liabilities

13,243

14,014

Advances and billings in excess of related costs

22,646

24,364

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

632

1,234

Total current liabilities

48,489

50,412

Deferred income taxes

2,211

2,392

Accrued retiree health care

6,544

6,616

Accrued pension plan liability, net

18,003

17,783

Other long-term liabilities

1,729

2,078

Long-term debt

9,824

8,730

Shareholders’ equity:

Common stock, par value $5.00 – 1,200,000,000 shares authorized;
1,012,261,159 shares issued

5,061

5,061

Additional paid-in capital

4,808

4,834

Treasury stock, at cost – 393,301,648 and 345,637,354 shares

(35,763)

(29,568)

Retained earnings

40,641

38,756

Accumulated other comprehensive loss

(12,658)

(12,748)

Total shareholders’ equity

2,089

6,335

Noncontrolling interests

61

62

Total equity

2,150

6,397

Total liabilities and equity

$88,950

$94,408

 

The Boeing Company and Subsidiaries

Consolidated Statements of Cash Flows

(Unaudited)

Nine months ended
September 30

(Dollars in millions)

2016

2015

Cash flows – operating activities:

Net earnings

$3,264

$4,150

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

Non-cash items – 

Share-based plans expense

144

141

Depreciation and amortization

1,364

1,349

Investment/asset impairment charges, net

61

124

Customer financing valuation benefit

(5)

(3)

Loss on dispositions, net

10

Other charges and credits, net

219

230

Excess tax benefits from share-based payment arrangements

(139)

Changes in assets and liabilities – 

Accounts receivable

(517)

(1,202)

Inventories, net of advances and progress billings

4,334

(2,186)

Accounts payable

1,366

1,058

Accrued liabilities

82

(196)

Advances and billings in excess of related costs

(1,717)

270

Income taxes receivable, payable and deferred

(725)

824

Other long-term liabilities

(67)

40

Pension and other postretirement plans

144

1,837

Customer financing, net

(195)

45

Other

(95)

(98)

Net cash provided by operating activities

7,667

6,244

Cash flows – investing activities:

Property, plant and equipment additions

(2,014)

(1,827)

Property, plant and equipment reductions

14

24

Acquisitions, net of cash acquired

(23)

Contributions to investments

(928)

(1,341)

Proceeds from investments

956

2,169

Other

8

33

Net cash used by investing activities

(1,964)

(965)

Cash flows – financing activities:

New borrowings

1,323

761

Debt repayments

(836)

(864)

Stock options exercised

192

331

Excess tax benefits from share-based payment arrangements

139

Employee taxes on certain share-based payment arrangements

(83)

(93)

Common shares repurchased

(6,501)

(6,001)

Dividends paid

(2,084)

(1,882)

Other

(24)

Net cash used by financing activities

(8,013)

(7,609)

Effect of exchange rate changes on cash and cash equivalents

(6)

(20)

Net decrease in cash and cash equivalents

(2,316)

(2,350)

Cash and cash equivalents at beginning of year

11,302

11,733

Cash and cash equivalents at end of period

$8,986

$9,383

 

The Boeing Company and Subsidiaries

Summary of Business Segment Data

(Unaudited)

Nine months ended
September 30

Three months ended
September 30

(Dollars in millions)

2016

2015

2016

2015

Revenues:

Commercial Airplanes

$48,828

$49,950

$16,973

$17,692

Defense, Space & Security:

Boeing Military Aircraft

9,898

10,237

3,260

4,037

Network & Space Systems

5,246

5,797

1,701

2,127

Global Services & Support

7,494

6,569

2,547

2,186

Total Defense, Space & Security

22,638

22,603

7,508

8,350

Boeing Capital

211

315

63

114

Unallocated items, eliminations and other

(392)

(327)

(646)

(307)

Total revenues

$71,285

$72,541

$23,898

$25,849

Earnings from operations:

Commercial Airplanes

$1,657

$4,591

$1,597

$1,768

Defense, Space & Security:

Boeing Military Aircraft

943

874

434

494

Network & Space Systems

336

563

35

245

Global Services & Support

920

874

315

283

Total Defense, Space & Security

2,199

2,311

784

1,022

Boeing Capital

36

41

13

10

Segment operating profit

3,892

6,943

2,394

2,800

Unallocated items, eliminations and other

(241)

(661)

(112)

(220)

Earnings from operations

3,651

6,282

2,282

2,580

Other income/(loss), net

41

(23)

2

(26)

Interest and debt expense

(227)

(203)

(81)

(67)

Earnings before income taxes

3,465

6,056

2,203

2,487

Income tax (expense)/benefit

(201)

(1,906)

76

(783)

Net earnings

$3,264

$4,150

$2,279

$1,704

Research and development expense, net:

Commercial Airplanes

$3,194

$1,713

$646

$616

Defense, Space & Security

750

715

229

241

Other

(43)

(2)

(18)

Total research and development expense, net

$3,901

$2,426

$857

$857

Unallocated items, eliminations and other

Share-based plans

($50)

($57)

($9)

($20)

Deferred compensation

(38)

(10)

(33)

38

Amortization of previously capitalized interest

(71)

(70)

(23)

(21)

Eliminations and other unallocated items

(333)

(324)

(135)

(160)

Sub-total (included in core operating earnings)

(492)

(461)

(200)

(163)

Pension

129

(293)

50

(84)

Postretirement

122

93

38

27

Total unallocated items, eliminations and other

($241)

($661)

($112)

($220)

 

The Boeing Company and Subsidiaries

Operating and Financial Data

(Unaudited)

Deliveries

Nine months ended
September 30

Three months ended
September 30

Commercial Airplanes

2016

2015

2016

2015

737

368

375

120

126

747

8

(3)

13

(1)

5

(3)

4

(1)

767

10

14

5

5

777

73

77

22

27

787

104

101

36

37

Total

563

580

188

199

Note: Deliveries under operating lease are identified by parentheses.

Defense, Space & Security

Boeing Military Aircraft

AH-64 Apache (New)

25

18

10

6

AH-64 Apache (Remanufactured)

27

33

9

10

C-17 Globemaster III

4

5

2

CH-47 Chinook (New)

17

35

7

14

CH-47 Chinook (Renewed)

23

6

7

1

F-15 Models

11

8

4

3

F/A-18 Models

20

28

6

8

P-8 Models

13

10

4

4

Global Services & Support

C-40A

1

Network & Space Systems

Commercial and Civil Satellites

3

1

2

Military Satellites

2

1

1

Contractual backlog (Dollars in billions)

September 30
2016

December 31

2015

Commercial Airplanes

$408.8

$431.4

Defense, Space & Security:

       Boeing Military Aircraft

20.8

19.9

       Network & Space Systems

6.5

7.4

       Global Services & Support

12.8

17.9

Total Defense, Space & Security

40.1

45.2

Total contractual backlog

$448.9

$476.6

Unobligated backlog

$13.1

$12.7

Total backlog

$462.0

$489.3

Workforce

154,700

161,400

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

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

(Dollars in millions, except per share data)

Third Quarter

Nine months

Guidance

2016

2015

2016

2015

2016

Revenues

$23,898

$25,849

$71,285

$72,541

GAAP Earnings From Operations

$2,282

$2,580

$3,651

$6,282

Increase/(Decrease) in GAAP Earnings From Operations

(12%)

(42%)

GAAP Operating Margin

9.5%

10.0%

5.1%

8.7%

Unallocated Pension (Income)/Expense

($50)

$84

($129)

$293

Unallocated Other Postretirement Benefit Income

($38)

($27)

($122)

($93)

Unallocated Pension and Other Postretirement Benefit (Income)/Expense

($88)

$57

($251)

$200

~($300)

Core Operating Earnings (non-GAAP)

$2,194

$2,637

$3,400

$6,482

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

(17%)

(48%)

Core Operating Margin (non-GAAP)

9.2%

10.2%

4.8%

8.9%

GAAP Diluted Earnings Per Share

$3.60

$2.47

$5.04

$5.92

$7.10 – $7.30

Unallocated Pension (Income)/Expense

($0.08)

$0.12

($0.20)

$0.42

Unallocated Postretirement Benefit (Income)/Expense

($0.06)

($0.04)

($0.19)

($0.13)

($0.30)

Provision for deferred income taxes on adjustments (1)

$0.05

($0.03)

$0.14

($0.10)

Core Earnings Per Share (non-GAAP)

$3.51

$2.52

$4.79

$6.11

$6.80 – $7.00

Weighted Average Diluted Shares (millions)

632.7

689.0

647.9

700.9

645 – 650

Increase/(Decrease) in GAAP Earnings Per Share

46%

(15%)

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

39%

(22%)

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

 

 

SOURCE : Boeing Website

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