Boeing Company
July 25, 2007: Boeing's
defense operations are improving - reflected in the company's
quarterly report released today, Boeing's Integrated Defense
Systems (IDS) unit, demonstrated a small 3% growth but represented
a major increase in earnings and operating margin. At quarter-end
the unit's backlog was $70.5 billion. Q2/07 revenues of the
IDS unit were $8.0 billion, with operating earnings of $854
million, reflecting an operating margin of 10.7%. In comparison
- Boeing's commecial operations made $8,707 in revenues with
earnings of $960 million.
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| The Boeing
Company's (NYSE:BA) increased its sales in the second quarter
of 2007 to over 17 billion, representing a 14% increase over
Q2/2006 when the company made almost 15 billion in sales, but
charges totaling over $1.067 billion turned its bottom line
red. This year the company maintained an operating margin of
8.8% with reported net income of $1.050 billion or $1.35 per
share, generating an operating cashflow of $3.634 billion. The
company increased its 2007 performance guidance and reaffirmed
its 2008 outlook.
"Our results and increased outlook reflect strong markets,
preferred products and services, and a focus on execution, growth
and productivity," said Boeing Chairman, President, and
Chief Executive Officer Jim McNerney. "Our extensive productivity
gains enable us to invest to protect key growth programs while
still improving our financial performance. In short, we are
taking on our challenges directly as we continue to realize
this company's potential."
Boeing's defense operations are improving - reflected in the
company's quarterly report released today, Boeing's Integrated
Defense Systems (IDS) unit, demonstrated a small 3% growth but
represented a major increase in earnings and operating margin.
At quarter-end the unit's backlog was $70.5 billion. Q2/07 revenues
of the IDS unit were $8.0 billion, with operating earnings of
$854 million, reflecting an operating margin of 10.7%. In comparison
- Boeing's commercial operations made 8,707 in revenues with
earnings of $960 million. Precision Engagement & Mobility
Systems revenues grew 2 percent to $3.4 billion reflecting higher
deliveries of F-15s and Chinooks, partially offset by lower
Apache revenues. The unit's operating margin was 11.9%. Space
programs under the Network & Space Systems achieved significant
milestones on development programs such as Future Combat Systems
and Wideband Global SATCOM, generating total revenues of $2.9
billion. Another line of business for Boeing is its Support
Systems – the unit generated strong growth and profitability
with revenues of $1.6 billion and operating margin of 11.9%
percent. The higher revenues reflect increased volume on integrated
logistics programs and international support programs, while
the margins were affected by a less favorable contract mix.
IDS guidance for 2007 and 2008 is unchanged. Revenue this
year is expected to be approximately $31 billion, and operating
margins are expected to expand to approximately 11 percent.
For 2008, IDS expects revenues to grow to between $32 billion
and $33 billion, with operating margins of approximately 11
percent.
April 25, 2007: The
Boeing Company's (NYSE:BA) released today its quarterly report,
indicating a strong quarter with net earnings increased of 27%
to $877 million, or $1.13 per share. Revenue grew 8% $15.4 billion
and earnings from operations rose 36% to $1.3 billion, yielding
an 8.5% operating margin. Given anticipated performance for
the remainder of the year, including growth in airplane deliveries
and expansion of business unit margins, Boeing reaffirmed its
financial guidance for 2007 and 2008. Boeing's backlog at quarter-end
reached a record $262 billion, up 23% in the last twelve months
due to continued strength in commercial airplane orders and
additional defense orders.
Boeing's business relies on two balanced pillars – Boeing
Commercial Airplanes (BCA) and Integrated Defense Systems (IDS),
each of the segments reported sales around $7 billion in the
recent quarter. The Integrated Defense Systems (IDS) reported
organic growth across all segments, in addition to productivity
improvements, resulting in revenue increase of 7% percent during
the quarter to $7.7 billion, almost equal to company's commercial
airplanes sales $7.5 billion, which also scored 7% increase
over Q1/06). However, while BCA's operating income was almost
flat at $706 million, IDS' operating earnings was $784 million,
down 4% from Q1/06. Operating margin dropped in both segments
although IDS maintained a slightly higher level of 10.2% (down
from 11.4% in Q1/06). IDS backlog at the quarter-end was $73.6
billion, representing continued progress on large multi-year
contracts.
"These results are in line with our expectations for the
quarter and represent solid progress toward the high goals we
have for ourselves in 2007 and beyond," said Boeing Chairman,
President, and Chief Executive Officer Jim McNerney. "Our
record backlog, increasing productivity, and the progress of
our development programs have us on track to achieve our growth
and profitability objectives." IDS revenue guidance for
2007 is approximately $31 billion, growing further to $32 billion
or even $33 billion in 2008. IDS plans to maintain an operating
margins of approximately 11%.
Higher deliveries of F/A-18 and Chinook programs and increased
volume on the P-8A Poseidon and F-22
subcontracts contributed to the growth IDS' Precision Engagement
& Mobility Systems segment, reporting revenue of $3.3 billion.
Network & Space Systems increased sales by 4% to $2.9 billion,
achieving two notable milestones on the Future
Combat Systems and Ground-based Missile Defense (GMD) program.
Increased volumes help offsetting the expected loss of reported
revenue from the recent formation of the United
Launch Alliance (ULA) joint venture with Lockheed Martin.
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