Boeing Reports Second-Quarter Financial Results

-- Second-quarter revenue rose 1 percent to $17.2 billion -- Earnings per share of $1.41 rose 22 percent -- Operating cash flow increased to $1.0 billion -- Backlog at $328 billion - nearly five times current annual revenues -- 787 side-of-body technical solution identified; schedule assessment ongoing

CHICAGO, July 22 /PRNewswire-FirstCall/ --The Boeing Company's (NYSE: BA) second-quarter earnings per share increased 22 percent to $1.41 per share, as revenues rose 1 percent to $17.2 billion, driven by growth in defense programs and strong performance in defense and commercial airplanes (Table 1). Year-ago results included a $0.22 per share charge on the Airborne Early Warning & Control (AEW&C) program.

    Table 1.  Summary Financial Results

                         Second Quarter              First Half
    (Millions, except    --------------              ----------
     per share data)      2009     2008    Change   2009     2008      Change
    ------------------    ----     ----             ----     ----

    Revenues           $17,154  $16,962       1% $33,656  $32,952         2%
    Earnings From
     Operations         $1,529   $1,247      23%  $2,554   $3,046       (16%)
    Operating Margin       8.9%     7.4%  1.5Pts      7.6%     9.2%  (1.6)Pts
    Reported Net Income   $998     $852      17%  $1,608   $2,063       (22%)
    Reported Earnings
     per Share           $1.41    $1.16      22%   $2.27    $2.79       (19%)
    Operating Cash Flow $1,001    ($251)     NA   $1,194   $1,682       (29%)



Revenues for the first six months of 2009 rose 2 percent to $33.7 billion. Earnings for the first half declined to $2.27 per share, including a $0.38 first-quarter impact from reductions to future twin-aisle production rates and delivery price escalation forecasts.

Earnings guidance for 2009 remains unchanged between $4.70 and $5.00 per share. The 787 program is currently assessing schedule and financial implications from the previously announced requirement to reinforce an area within the side-of-body joint. The company expects to issue a new 787 schedule during the third quarter, at which time earnings guidance will be reevaluated.

"Our continued focus on productivity improvements and disciplined cash management drove solid overall results for the quarter," said Boeing Chairman, President and Chief Executive Officer Jim McNerney. "While market and development program execution challenges remain with us, we are doing what's necessary to emerge from the current economic environment as a stronger company that's better positioned to grow and improve its financial performance over time."

Boeing's quarterly operating cash flow was $1.0 billion, which includes continued investment in development programs and lower advances from commercial airplane orders (Table 2). For the first half of 2009, operating cash flow was $1.2 billion. Free cash flow* was $0.7 billion in the quarter and $0.5 billion in the first half.

    Table 2.  Cash Flow

                                              Second Quarter    First Half
                                              --------------    ----------
    (Millions)                                  2009   2008    2009    2008
    ----------                                  ----   ----    ----    ----

    Operating Cash Flow (1)                   $1,001  ($251) $1,194  $1,682
      Less Additions to Property, Plant &
       Equipment                               ($294) ($398)  ($736)  ($807)
                                               -----  -----   -----   -----
    Free Cash Flow*                             $707  ($649)   $458    $875
    ----------------                            ----  -----    ----    ----

    (1) Operating cash flow for the first half of 2008 includes a
    $517 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."


Total company backlog at quarter-end was $328 billion, down 3 percent in the quarter, as the value of deliveries exceeded net orders during the period.

Cash and investments in marketable securities totaled $5.0 billion at quarter-end, up 6 percent from the end of the first quarter (Table 3). Debt declined modestly due to maturities of Boeing Capital Corporation debt. The company did not acquire any of its shares in the second quarter.

    Table 3.  Cash, Marketable Securities and Debt Balances

                                          Quarter-End
                                          -----------
    (Billions)                            2Q09   1Q09
    ----------                                            ----      ----
        Cash                                                                    $4.6      $4.2
        Marketable  Securities  (1)                          $0.4      $0.5
                                                                                    ----      ----
              Total                                                            $5.0      $4.7

        Debt  Balances:
        The  Boeing  Company                                        $5.7      $5.7
        Boeing  Capital  Corporation                        $3.4      $3.6
                                                                                    ----      ----
              Total  Consolidated  Debt                        $9.1      $9.3
        --------------------------                        ----      ----

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


 


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