EX-99.1 2 dex991.htm PRESS RELEASE REPORTING FIRST QUARTER RESULTS FOR 2009 Press release reporting first quarter results for 2009

Exhibit 99.1

 

LOGO   News Release

 

 

 

The Boeing Company

100 North Riverside Plaza

Chicago, IL 60606-1596

www.boeing.com

Boeing Reports First-Quarter Earnings

 

•  

First-quarter net income was $0.6 billion with earnings per share of $0.86 which includes the previously announced $0.38 per share reduction from revised twin-aisle commercial airplane production rates and lower price escalation forecasts

 

•  

Revenue rose 3 percent to $16.5 billion on higher commercial airplane deliveries and higher volume in defense

 

•  

Operating cash flow was $0.2 billion

 

•  

Backlog at $339 billion – nearly five times current annual revenues

 

•  

2009 earnings outlook reduced to reflect changes in commercial market; outlook for Integrated Defense Systems is reaffirmed on solid execution

Table 1. Summary Financial Results

 

     First Quarter        

(Millions, except per share data)

    2009     2008     Change  

Revenues

    $ 16,502     $ 15,990     3 %

Earnings From Operations

    $ 1,025     $ 1,799     (43 )%

Operating Margin

      6.2 %     11.3 %   (5.1 )Pts

Reported Net Income

    $ 610     $ 1,211     (50 )%

Reported Earnings per Share

    $ 0.86     $ 1.62     (47 )%

Operating Cash Flow

    $ 193     $ 1,933     N.A.  

CHICAGO, April 22, 2009 – The Boeing Company’s [NYSE: BA] first-quarter 2009 earnings per share decreased 47 percent to $0.86 driven by the previously announced $0.38 per share impact from pending twin-aisle production rate changes and lower delivery price escalation forecasts in commercial airplanes (Table 1). The majority of this earnings impact was recorded as an increase in the reach-forward loss position of the 747 program.

Excluding the effects of a weakened commercial airplane market, solid execution on programs across Integrated Defense Systems and Commercial Airplanes underpinned the quarter’s results. Results were also impacted by a less favorable delivery mix in defense and higher expense for research and development.

 

1

“The expanded global economic downturn is presenting unprecedented challenges in our commercial airplane markets,” said Boeing Chairman, President, and Chief Executive Officer Jim McNerney. “We believe we are better positioned than most companies to withstand the ongoing pressures of this economy, and we are not hesitating to take necessary actions to preserve our financial strength and maintain our ability to invest and grow for the long term. Performance across the overwhelming majority of our programs remains solid, and we are making progress toward our milestones on the 787 and other important programs.”

Boeing’s quarterly revenue rose 3 percent to $16.5 billion while its operating cash flow was $0.2 billion reflecting continued investment in development programs and lower advances from commercial airplane orders. Free cash flow* was ($0.2) billion (Table 2).

Boeing lowered its 2009 earnings per share guidance to between $4.70 and $5.00 primarily due to the lower price escalation forecasts.

Total company backlog at quarter-end was $339 billion, down 4 percent in the quarter, driven by run-off of backlog through revenues, the lower price escalation forecast, and previously announced 787 cancellations, partially offset by new orders in IDS for C-17 and integrated logistics.

Table 2. Cash Flow

 

     First Quarter  

(Millions)

    2009     2008  

Operating Cash Flow1

    $ 193     $ 1,933  

Less Additions to Property, Plant & Equipment

    ($ 442 )   ($ 409 )
                

Free Cash Flow*

    ($ 249 )   $ 1,524  

 

1

Operating cash flow for the first quarter of 2008 includes a $506 million contribution to pension plans.

* Non-GAAP measure. A complete definition and reconciliation of Boeing's use of non-GAAP measures, identified by an asterisk (*), is found on page 8, "Non-GAAP Measure Disclosure."

Cash and investments in marketable securities totaled $4.7 billion at quarter-end, up during the first quarter as a result of new debt issuance (Table 3). The company spent $50 million to acquire 1.2 million of its shares in the quarter.

Table 3. Cash, Marketable Securities and Debt Balances

 

     Quarter-End

(Billions)

    1Q09    4Q08

Cash

    $ 4.2    $ 3.3

Marketable Securities1

    $ 0.5    $ 0.3
             

Total

    $ 4.7    $ 3.6

Debt Balances:

      

The Boeing Company

    $ 5.7    $ 3.9

Boeing Capital Corporation

    $ 3.6    $ 3.6
             

Total Consolidated Debt

    $ 9.3    $ 7.5

 

1

Marketable securities consists primarily of investment-grade instruments classified as "short-term investments" and "investments."

 

2

Segment Results

Commercial Airplanes

Boeing Commercial Airplanes (BCA) first-quarter revenues rose to $8.6 billion on a 5 percent increase in airplane deliveries partially offset by lower volume in services (Table 4). Operating earnings fell by 58 percent to $417 million while margins contracted to 4.9 percent, driven by the pending reduction in twin-aisle production rates and unfavorable delivery price escalation forecasts.

Table 4. Commercial Airplanes Operating Results

 

      First Quarter        

(Millions, except deliveries & margin percent)

    2009     2008     Change  

Commercial Airplanes Deliveries

      121       115     5 %

Revenues

    $ 8,554     $ 8,161     5 %

Earnings from Operations

    $ 417     $ 983     (58 %)

Operating Margins

      4.9 %     12.0 %   (7.1 )Pts

Margins on all programs were reduced by the lower price escalation forecasts, the decision to reduce 777 production rates for deliveries beginning in June 2010, and postponing planned increases in 747-8 and 767 production. Because the 747 program is currently in a loss position, the reduced earnings associated with the factors above were recorded for the 747s delivered in the quarter as well as most units in the 747 backlog. That impact, somewhat offset by a refinement in cost estimates, resulted in the charge of $347 million, or $0.31 per share, that reduced BCA margins by 4.0 points.

BCA booked 28 gross orders during the quarter, but removed 32 others from its order book as previously disclosed. Contractual backlog was $266 billion, more than seven times BCA’s expected 2009 revenues.

Progress on the new 787 Dreamliner continues on the revised schedule announced in December. The company expects the first flight to occur in the second quarter of 2009 with deliveries to begin in the first quarter of 2010. Recent milestones include completion of build-verification tests on Airplane 1, clearance of all systems hardware and Rolls-Royce engines for first flight, completion of power-on for Airplane 2, and the beginning of final assembly for the sixth and final flight test airplane. The program saw orders for 32 airplanes cancelled by mutual agreement with customers during the quarter. Total firm orders are now 886 airplanes from 57 customers.

 

3

Integrated Defense Systems

Boeing Integrated Defense Systems (IDS) first-quarter revenues rose 2 percent to $7.7 billion. Operating margins of 9.2 percent reflect strong execution in all segments offset by a less favorable delivery mix (Table 5).

Table 5. Integrated Defense Systems Operating Results

 

     First Quarter     Change  

(Millions, except margin percent)

    2009     2008    

Revenues

       

Boeing Military Aircraft

    $ 3,010     $3,202     (6 )%

Network & Space Systems

    $ 2,678     $2,694     (1 )%

Global Services & Support

    $ 2,032     $1,679     21 %
                    

Total IDS Revenues

    $ 7,720     $7,575     2 %

Earnings from Operations

       

Boeing Military Aircraft

    $ 282     $   384     (27 )%

Network & Space Systems

    $ 207     $   267     (22 )%

Global Services & Support

    $ 220     $   209     5 %
                    

Total IDS Earnings from Operations

    $ 709     $   860     (18 )%

Operating Margins

      9.2 %   11.4 %   (2.2 )Pts

Boeing Military Aircraft delivered first-quarter operating earnings of $282 million on $3.0 billion in revenue. Operating margin was 9.4 percent reflecting strong execution across aircraft production programs. Results were impacted by mix and volume. In this segment, the U.S. Air Force contracted for 15 previously funded C-17s, the United Arab Emirates announced their intent to purchase the C-17, Japan accepted delivery of its third KC-767, and the P-8A completed the loads calibration testing milestone.

Network & Space Systems achieved significant milestones on several key development programs, including Future Combat System and Ground-based Midcourse Defense. Operating margin was 7.7 percent driven by strong performance across the segment’s array of programs partially offset by lower earnings on the United Launch Alliance joint venture. Last year’s results included a favorable settlement on a satellite program.

Global Services & Support revenues increased 21 percent on higher volume in its broad portfolio of services and logistics programs. During the quarter, GS&S continued to generate double-digit operating margins of 10.8 percent. In this segment, the company captured contracts for V-22 performance-based logistics as well as maintenance and operations support for Ground-based Midcourse Defense.

 

4

IDS’ backlog is $73.0 billion, more than two times expected 2009 revenues. New orders for the quarter include the additional C-17s and the contracts for integrated logistics and support.

Boeing Capital Corporation

Boeing Capital Corporation (BCC) reported first-quarter pre-tax earnings of $37 million compared to $61 million in the same period last year due to a smaller aircraft finance portfolio and higher reserves and impairments (Table 6). BCC’s portfolio balance at the end of the quarter was $6.0 billion, down 5 percent from $6.3 billion in the year-ago period primarily on normal portfolio run-off, including customer payments and depreciation, partially offset by additions to its portfolio of $135 million in new financings. BCC contributed $35 million in cash dividends to the company during the quarter. BCC’s debt-to-equity ratio was unchanged at 5.0-to-1.

Table 6. Boeing Capital Corporation Operating Results

 

     First Quarter    Change  

(Millions)

    2009    2008   

Revenues

    $ 163    $ 185    (12 )%

Earnings from Operations

    $ 37    $ 61    (39 )%

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 $23 million in the first quarter, reduced from $50 million of expense in the same period last year.

Unallocated expense was $115 million, up from $55 million in the same quarter last year driven by higher intersegment eliminations.

Total pension expense for the quarter increased to $219 million, up from $191 million in the same period last year. A total of $242 million was allocated to the operating segments in the quarter (up from $124 million in the same period last year), partially offset by a $23 million contribution to earnings in unallocated items.

 

5

Outlook

The 2009 financial guidance reflects challenging commercial and defense markets, as well as company plans to reduce discretionary spending and restructure various internal organizations to drive higher levels of productivity. The company expects to issue 2010 financial guidance later in the year.

Boeing’s 2009 revenue guidance is reaffirmed at $68 billion to $69 billion. Earnings-per-share guidance for 2009 is reduced to $4.70 to $5.00 per share from $5.05 to $5.35 per share due to lower earnings at Commercial Airplanes (Table 7). Operating cash flow is still expected to be greater than $2.5 billion, including discretionary pension contributions of approximately $0.5 billion and an assumption of $1 billion for new commercial airplane financings.

Commercial Airplanes’ 2009 delivery guidance remains at between 480 and 485 airplanes and is sold out. BCA’s 2009 revenue is unchanged between $34 billion and $35 billion. BCA’s operating margin is now expected to be between 8 percent and 8.5 percent, down from approximately 10 percent, due to the effect of lower twin-aisle deliveries in future periods and lower forecasted delivery price escalation in future periods.

Earlier this month, the U.S. Department of Defense outlined its 2010 budget priorities. Boeing will be evaluating the defense budget as it progresses through Congress to determine the potential future effects on our business outlook. The company has been anticipating changes in the U.S. defense budget for some time. The company continues to consider IDS well-positioned with a diverse portfolio of defense, space and security programs, and will increase its focus on international defense opportunities and pursuit of adjacent markets in the U.S. IDS guidance for 2009 remains unchanged with revenue between $33 billion and $34 billion and operating margins of approximately 10 percent.

Boeing Capital Corporation continues to expect that the aircraft finance portfolio will increase modestly as the amount of aircraft financing in 2009 will exceed normal portfolio runoff due to customer payments and depreciation.

Boeing’s 2009 R&D forecast is between $3.6 billion and $3.8 billion. Annual capital expenditures are expected to be approximately $1.4 billion in 2009. The company’s non-cash pension expense is now expected to be approximately $0.9 billion in 2009.

 

6

Table 7. Financial Outlook (Billions, except deliveries and per share data)

 

     2009

The Boeing Company

   

Revenues

    $68 – $69

Earnings Per Share (GAAP)

    $4.70 – $5.00

Operating Cash Flow1

    > $2.5

Boeing Commercial Airplanes

   

Deliveries

    480 – 485

Revenues

    $34 – $35

Operating Margin

    8 % – 8.5%

Integrated Defense Systems

   

Revenues

   

Boeing Military Aircraft

    ~ $14.0

Network & Space Systems

    ~ $11.5

Global Services & Support

    ~ $8.0
    

Total IDS Revenues

    $33 – $34

Operating Margin

   

Boeing Military Aircraft

    ~ 10%

Network & Space Systems

    ~ 9%

Global Services & Support

    ~ 11.5%
    

Total IDS Operating Margin

    ~ 10%

Boeing Capital Corporation

   

Portfolio Size

    Modest increase

Revenue

    ~ $0.6

Return on Assets

    > 1.0%

Research & Development

    $3.6 – $3.8

Capital Expenditures

    ~ $1.4

 

1

After pension contributions of $0.5 billion and assumed $1 billion for new aircraft financings in 2009.

 

7

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.

 

8

Forward-Looking Information Is Subject to Risk and Uncertainty

Certain statements in this report may be “forward-looking” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “targets,” and similar expressions are used to identify these forward-looking statements. Forward-looking statements are based upon assumptions about future events that may not prove to be accurate. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Actual outcomes and results may differ materially from what is expressed or forecasted in these forward-looking statements. As a result, these statements speak to events only as of the date they are 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, except as required by federal securities laws. Specific factors that could cause actual results to differ materially from forward-looking statements include, but are not limited to, those set forth below and other important factors disclosed previously and from time to time in our other filings with the Securities and Exchange Commission: the effect of economic conditions in the United States and globally; the impact on our accounts receivable, customer financing portfolios and allowance for losses of customer defaults and changes in customer credit ratings, credit default rates and collateral values; the impact on our revenues and operating results of changes to indices included in indexed price escalation clauses included in our contracts with commercial airplane and defense customers; the successful execution of our Commercial Airplanes and Integrated Defense Systems backlog; the effects of customers cancelling, modifying and/or rescheduling contractual orders; the timing and effects of any decisions to increase or decrease the rate of commercial airplane production; the timing and effects of decisions to complete or launch a Commercial Airplanes program; the ability to successfully develop and timely produce the 787 and 747-8 aircraft; the ability of our suppliers and, as applicable, subcontractors to successfully and timely perform their obligations; the effect on our revenues of political and legal processes; changing defense priorities; and associated budget reductions by U.S. and international government customers affecting Boeing defense programs; our relationship with our union-represented workforce and the negotiation of collective bargaining agreements; the continuation of long-term trends in passenger and cargo traffic and revenue yields in the airline industry; the impact of volatile fuel prices and the airline industry’s response; the effect of declines in aircraft valuation; the impact on our revenues or operating results of airline bankruptcies; the extent to which we are called upon to fund outstanding financing commitments or satisfy other financing requests, and our ability to satisfy those requirements; the continuation of historical costs for fleet support services; the receipt of estimated award and incentive fees on U.S. government contracts; the future demand for commercial satellites and projections of future order flow; the potential for technical or quality issues on development programs, including the Airborne Early Warning and Control program, International KC-767 Tanker, other fixed-price development programs, or commercial satellite programs, to affect schedule and cost estimates, or cause us to incur a material charge or experience a termination for default; the outcome of any litigation and/or government investigation in which we are a party, and other contingencies; returns on pension fund assets, impacts of future interest rate changes on pension obligations and rising healthcare costs; our ability to access external capital resources to fund our operations; the amounts and effects of underinsured operations, including satellite launches; and the scope, nature or impact of acquisition or disposition activity and investment in any joint ventures/strategic alliances, including Sea Launch and United Launch Alliance, and indemnifications related thereto.

# # #

 

Contact:   
Investor Relations:    Diana Sands or Rob Young (312) 544-2140
Communications:    Todd Blecher (312) 544-2002

 

9

The Boeing Company and Subsidiaries

Consolidated Statements of Operations

(Unaudited)

 

     Three months ended
March 31		  

(Dollars in millions except per share data)

    2009     2008  

Sales of products

    $ 13,835     $ 13,688  

Sales of services

      2,667       2,302  
                

Total revenues

      16,502       15,990  

Cost of products

      (11,579 )     (10,788 )

Cost of services

      (2,119 )     (1,755 )

Boeing Capital Corporation interest expense

      (47 )     (62 )
                

Total costs and expenses

      (13,745 )     (12,605 )
                
     2,757       3,385  

Income from operating investments, net

      32       58  

General and administrative expense

      (791 )     (775 )

Research and development expense, net

      (970 )     (869 )

Loss on dispositions/business shutdown, net

      (3 )  
                

Earnings from operations

      1,025       1,799  

Other (loss)/income, net

      (36 )     100  

Interest and debt expense

      (57 )     (46 )
                

Earnings before income taxes

      932       1,853  

Income tax expense

      (317 )     (647 )
                

Net earnings from continuing operations

      615       1,206  

Net (loss)/gain on disposal of discontinued operations, net of taxes of $3 and ($3)

      (5 )     5  
                

Net earnings

    $ 610     $ 1,211  
                

Basic earnings per share from continuing operations

    $ 0.88     $ 1.63  

Net (loss)/gain on disposal of discontinued operations, net of taxes

      (0.01 )     0.01  
                

Basic earnings per share

    $ 0.87     $ 1.64  
                

Diluted earnings per share from continuing operations

    $ 0.87     $ 1.61  

Net (loss)/gain on disposal of discontinued operations, net of taxes

      (0.01 )     0.01  
                

Diluted earnings per share

    $ 0.86     $ 1.62  
                

Cash dividends paid per share

    $ 0.42     $ 0.40  
                

Weighted average diluted shares (millions)

      707.4       747.4  
                

The Boeing Company and Subsidiaries

Consolidated Statements of Financial Position

(Unaudited)

 

(Dollars in millions except per share data)

    March 31
2009		     December 31
2008		  

Assets

     

Cash and cash equivalents

    $ 4,237     $ 3,268  

Short-term investments

      213       11  

Accounts receivable, net

      6,238       5,602  

Current portion of customer financing, net

      353       425  

Deferred income taxes

      1,114       1,046  

Inventories, net of advances and progress billings

      15,649       15,612  
                

Total current assets

      27,804       25,964  

Customer financing, net

      5,854       5,857  

Property, plant and equipment, net of accumulated depreciation of $12,402 and $12,280

      8,798       8,762  

Goodwill

      3,654       3,647  

Other acquired intangibles, net

      2,627       2,685  

Deferred income taxes

      3,880       4,114  

Investments

      1,261       1,328  

Pension plan assets, net

      12       16  

Other assets, net of accumulated amortization of $437 and $400

      1,450       1,406  
                
   $ 55,340     $ 53,779  
                

Liabilities and Shareholders’ Equity

     

Accounts payable and other liabilities

    $ 17,553     $ 17,435  

Advances and billings in excess of related costs

      11,527       12,737  

Income taxes payable

      355       41  

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

      530       560  
                

Total current liabilities

      29,965       30,773  

Accrued retiree health care

      7,336       7,322  

Accrued pension plan liability, net

      8,484       8,383  

Non-current income taxes payable

      1,035       1,154  

Other long-term liabilities

      287       337  

Long-term debt

      8,742       6,952  

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

      3,289       3,456  

Treasury shares, at cost – 286,098,252 and 285,661,944

      (17,756 )     (17,758 )

Retained earnings

      23,284       22,675  

Accumulated other comprehensive loss

      (13,511 )     (13,525 )

ShareValue Trust shares – 28,861,019 and 28,460,769

      (1,029 )     (1,203 )
                

Total Boeing shareholders’ equity

      (662 )     (1,294 )

Noncontrolling interest

      153       152  
                

Total shareholders’ equity

      (509 )     (1,142 )
                
   $ 55,340     $ 53,779  
                

The Boeing Company and Subsidiaries

Consolidated Statements of Cash Flows

(Unaudited)

 

     Three months ended
March 31		  

(Dollars in millions)

    2009     2008  

Cash flows - operating activities:

     

Net earnings

    $ 610     $ 1,211  

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

     

Non-cash items –

     

Share-based plans expense

      60       45  

Depreciation

      335       322  

Amortization of other acquired intangibles

      49       40  

Amortization of debt discount/premium and issuance costs

      2       2  

Investment/asset impairment charges, net

      21    

Customer financing valuation provision/(benefit)

      9       (6 )

Loss/(gain) on disposal of discontinued operations

      8       (8 )

Loss on dispositions/business shutdown, net

      3    

Other charges and credits, net

      63       56  

Excess tax benefits from share-based payment arrangements

      (5 )     (43 )

Changes in assets and liabilities –

     

Accounts receivable

      (869 )     197  

Inventories, net of advances and progress billings

      (82 )     (604 )

Accounts payable and other liabilities

      475       628  

Advances and billings in excess of related costs

      (1,210 )     113  

Income taxes receivable, payable and deferred

      534       502  

Other long-term liabilities

      (51 )     (127 )

Pension and other postretirement plans

      304       (419 )

Customer financing, net

      21       72  

Other

      (84 )     (48 )
                

Net cash provided by operating activities

      193       1,933  
                

Cash flows - investing activities:

     

Property, plant and equipment additions

      (442 )     (409 )

Property, plant and equipment reductions

      25       9  

Acquisitions, net of cash acquired

      (30 )     (40 )

Contributions to investments

      (200 )     (2,958 )

Proceeds from investments

      49       3,630  

Other

        (95 )
                

Net cash (used)/provided by investing activities

      (598 )     137  
                

Cash flows - financing activities:

     

New borrowings

      1,827       5  

Debt repayments

      (71 )     (32 )

Stock options exercised, other

        15  

Excess tax benefits from share-based payment arrangements

      5       43  

Employee taxes on certain share-based payment arrangements

      (15 )  

Common shares repurchased

      (50 )     (1,158 )

Dividends paid

      (305 )     (306 )
                

Net cash provided/(used) by financing activities

      1,391       (1,433 )
                

Effect of exchange rate changes on cash and cash equivalents

      (17 )     28  
                

Net increase in cash and cash equivalents

      969       665  

Cash and cash equivalents at beginning of year

      3,268       7,042  
                

Cash and cash equivalents at end of period

    $ 4,237     $ 7,707  
                

The Boeing Company and Subsidiaries

Summary of Business Segment Data

(Unaudited)

 

     Three months ended
March 31		  

(Dollars in millions)

    2009     2008  

Revenues:

     

Commercial Airplanes

    $ 8,554     $ 8,161  

Integrated Defense Systems:

     

Boeing Military Aircraft

      3,010       3,202  

Network and Space Systems

      2,678       2,694  

Global Services and Support

      2,032       1,679  
                

Total Integrated Defense Systems

      7,720       7,575  

Boeing Capital Corporation

      163       185  

Other

      39       75  

Unallocated items and eliminations

      26       (6 )
                

Total revenues

    $ 16,502     $ 15,990  
                

Earnings from operations:

     

Commercial Airplanes

    $ 417     $ 983  

Integrated Defense Systems:

     

Boeing Military Aircraft

      282       384  

Network and Space Systems

      207       267  

Global Services and Support

      220       209  
                

Total Integrated Defense Systems

      709       860  

Boeing Capital Corporation

      37       61  

Other

      (23 )     (50 )

Unallocated items and eliminations

      (115 )     (55 )
                

Earnings from operations

      1,025       1,799  

Other (loss)/income, net

      (36 )     100  

Interest and debt expense

      (57 )     (46 )
                

Earnings before income taxes

      932       1,853  

Income tax expense

      (317 )     (647 )
                

Net earnings from continuing operations

      615       1,206  

Net (loss)/gain on disposal of discontinued operations, net of taxes of $3 and ($3)

      (5 )     5  
                

Net earnings

      610       1,211  
                

Research and development expense:

     

Commercial Airplanes

    $ 711     $ 633  

Integrated Defense Systems:

     

Boeing Military Aircraft

      130       125  

Network and Space Systems

      86       76  

Global Services and Support

      34       34  
                

Total Integrated Defense Systems

      250       235  

Other

      9       1  
                

Total research and development expense

    $ 970     $ 869  
                

Unallocated items and eliminations:

     

Share-based plans

    $ (57 )   $ (30 )

Deferred compensation

      23       61  

Pension

      23       (67 )

Postretirement

      (23 )     (20 )

Capitalized interest

      (15 )     (13 )

Other

      (66 )     14  
                

Total unallocated items and eliminations

    $ (115 )   $ (55 )
                

The Boeing Company and Subsidiaries

Operating and Financial Data

(Unaudited)

 

      Three months ended
March 31

Deliveries

    2009    2008
Commercial Airplanes          

737 Next-Generation

      91      87

747

      4      4

767

      3      3

777

      23      21
             

Total

      121      115
             
Integrated Defense Systems          

Boeing Military Aircraft

      

F/A-18 Models

      10      10

F-15E Eagle

      4      4

C-17 Globemaster

      3      3

KC-767 Tanker

      1      2

CH-47 Chinook

         2

T-45TS Goshawk

      2      1

AH-64 Apache

      5   

Network and Space Systems

      

Commercial and Civil Satellites

         1

Military Satellites

      1   

Contractual backlog (Dollars in billions)

    March 31
2009		    December 31
2008

Commercial Airplanes

    $ 266.0    $ 278.6

Integrated Defense Systems:

      

Boeing Military Aircraft

      28.2      25.7

Network and Space Systems

      8.9      8.9

Global Services and Support

      11.6      10.7
             

Total Integrated Defense Systems

      48.7      45.3
             

Total contractual backlog

    $ 314.7    $ 323.9
             

Unobligated backlog

    $ 24.7    $ 28.2
             

Total backlog

    $ 339.4    $ 352.1
             

Workforce

      160,900      162,200