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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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