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Boeing Co. LSE:BOE London Ordinary Share COM STK USD5 (CDI)
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.0% 178.92 170.64 188.58 0.00 0.00 0.00 0.00 13:07:16
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Aerospace & Defence 76,559.0 -2,259.0 0.0 - 140,882

Boeing Co 1st Quarter Results

29/04/2020 12:31pm

UK Regulatory (RNS & others)


 
TIDMBOE 
 
Boeing Reports First-Quarter Results 
 
CHICAGO, April 29, 2020 /PRNewswire/ -- 
 
  * Financial results significantly impacted by COVID-19 and the 737 MAX 
    grounding 
  * Revenue of $16.9 billion, GAAP loss per share of ($1.11) and core 
    (non-GAAP)* loss per share of ($1.70) 
  * Operating cash flow of ($4.3) billion; cash and marketable securities of 
    $15.5 billion 
  * Total backlog of $439 billion, including over 5,000 commercial airplanes 
 
Table 1. Summary Financial Results                   First Quarter 
 
(Dollars in Millions, except per share data)        2020       2019    Change 
 
Revenues                                           $16,908   $22,917    (26)% 
 
GAAP 
 
(Loss)/Earnings From Operations                   ($1,353)    $2,350     NM 
 
Operating Margin                                   (8.0)%     10.3%      NM 
 
Net (Loss)/Earnings                                 (641)     $2,149     NM 
 
(Loss)/Earnings Per Share                          ($1.11)    $3.75      NM 
 
Operating Cash Flow                               ($4,302)    $2,788     NM 
 
Non-GAAP* 
 
Core Operating (Loss)/Earnings                    ($1,700)    $1,986     NM 
 
Core Operating Margin                              (10.1)%     8.7%      NM 
 
Core (Loss)/Earnings Per Share                     ($1.70)    $3.16      NM 
 
*Non-GAAP measure; complete definitions of Boeing's non-GAAP measures are on 
page 6, "Non-GAAP Measures Disclosures." 
 
 
The Boeing Company [NYSE: BA] reported first-quarter revenue of $16.9 billion, 
GAAP loss per share of ($1.11) and core loss per share (non-GAAP)* of ($1.70), 
primarily reflecting the impacts of COVID-19 and the 737 MAX grounding (Table 
1). Boeing recorded operating cash flow of ($4.3) billion. 
 
"The COVID-19 pandemic is affecting every aspect of our business, including 
airline customer demand, production continuity and supply chain stability," 
said Boeing President and CEO David Calhoun. "Our primary focus is the health 
and safety of our people and communities while we take tough but necessary 
action to navigate this unprecedented health crisis and adapt for a changed 
marketplace." 
 
As the pandemic continues to reduce airline passenger traffic, Boeing sees 
significant impact on the demand for new commercial airplanes and services, 
with airlines delaying purchases for new jets, slowing delivery schedules and 
deferring elective maintenance. To align the business for the new market 
reality, Boeing is taking several actions that include reducing commercial 
airplane production rates. The company also announced a leadership and 
organizational restructuring to streamline roles and responsibilities, and 
plans to reduce overall staffing levels with a voluntary layoff program and 
additional workforce actions as necessary. 
 
Boeing has also taken action to manage near-term liquidity, as it has drawn on 
a term loan facility; reduced operating costs and discretionary spending; 
extended the existing pause on share repurchases and suspended dividends until 
further notice; reduced or deferred research and development and capital 
expenditures; and eliminated CEO and Chairman pay for the year. Access to 
additional liquidity will be critical for Boeing and the aerospace 
manufacturing sector to bridge to recovery, and the company is actively 
exploring all of the available options. Boeing believes it will be able to 
obtain sufficient liquidity to fund its operations. 
 
"While COVID-19 is adding unprecedented pressure to our business, we remain 
confident in our long term future," said Calhoun.  "We continue to support our 
defense customers in their critical national security missions. We are 
progressing toward the safe return to service of the 737 MAX, and we are 
driving safety, quality and operational excellence into all that we do every 
day. Air travel has always been resilient, our portfolio of products and 
technology is well positioned, and we are confident we will emerge from the 
crisis and thrive again as a leader of our industry." 
 
Table 2. Cash Flow                                            First Quarter 
 
(Millions)                                                    2020       2019 
 
Operating Cash Flow                                          ($4,302)    $2,788 
 
Less Additions to Property, Plant & Equipment                  ($428)    ($501) 
 
Free Cash Flow*                                              ($4,730)    $2,287 
 
*Non-GAAP measure; complete definitions of Boeing's non-GAAP measures are on 
page 6, "Non-GAAP Measures Disclosures." 
 
Operating cash flow was ($4.3) billion in the quarter, primarily reflecting the 
impact of the 737 MAX grounding and COVID-19, as well as timing of receipts and 
expenditures (Table 2). 
 
Table 3. Cash, Marketable Securities and Debt Balances            Quarter-End 
 
(Billions)                                                       Q1 20   Q4 19 
 
Cash                                                              $15.0    $9.5 
 
Marketable Securities1                                             $0.5    $0.5 
 
Total                                                             $15.5   $10.0 
 
Debt Balances: 
 
The Boeing Company, net of intercompany loans to BCC              $36.9   $25.3 
 
Boeing Capital, including intercompany loans                       $2.0    $2.0 
 
Total Consolidated Debt                                           $38.9   $27.3 
 
1 Marketable securities consists primarily of time deposits due within one year 
classified as "short-term investments." 
 
Cash and investments in marketable securities increased to $15.5 billion, 
compared to $10.0 billion at the beginning of the quarter, primarily due to 
increased debt balance (Table 3). Debt was $38.9 billion, up from $27.3 billion 
at the beginning of the quarter primarily due to the draw down of a term loan 
facility, partially offset by debt repayments. 
 
Total company backlog at quarter-end was $439 billion. 
 
Segment Results 
 
Commercial Airplanes 
 
Table 4. Commercial Airplanes     First Quarter 
 
(Dollars in Millions)             2020     2019    Change 
 
Commercial Airplanes Deliveries       50      149  (66)% 
 
Revenues                          $6,205  $11,822  (48)% 
 
(Loss)/Earnings from Operations ($2,068)   $1,173    NM 
 
Operating Margin                 (33.3)%     9.9%    NM 
 
Commercial Airplanes first-quarter revenue was $6.2 billion reflecting lower 
deliveries driven by the 737 MAX grounding as well as impacts of COVID-19 
(Table 4). First-quarter operating margin decreased to (33.3) percent due to 
lower delivery volume, $797 million of abnormal production costs from the 
temporary suspension of 737 MAX production, a $336 million charge related to 
737 Next Generation frame fitting component (pickle fork) repair costs, lower 
787 margins primarily due to COVID-19, and $137 million of abnormal production 
costs from the temporary suspension of Puget Sound operations in response to 
COVID-19. 
 
COVID-19 has adversely impacted the 737 program due to a slower than previously 
planned production rate ramp-up driven by commercial airline industry 
uncertainty. To reflect COVID-19 impacts on the demand environment, 737 MAX 
aircraft production will resume at low rates in 2020 as timing and conditions 
of return to service are better understood and gradually increase to 31 per 
month during 2021, with further gradual increases to correspond with market 
demand. The estimated abnormal production costs from the temporary suspension 
of 737 MAX production have increased by approximately $1 billion due to updated 
production rate assumptions, bringing the estimated total to approximately $5 
billion. There was no material change to estimated potential concessions and 
other considerations to customers related to the 737 MAX grounding. 
 
Commercial Airplanes has updated its production rate assumptions to reflect 
impacts from COVID-19 on its operations and demand outlook, and will continue 
to assess them on an ongoing basis. The 787 production rate will be reduced 
from 14 per month to 10 per month in 2020, and gradually reduced to 7 per month 
by 2022. The 777/777X combined production rate will be reduced to 3 per month 
in 2021. At this time, production rate assumptions have not changed on the 767 
and 747 programs. 
 
Commercial Airplanes delivered 50 airplanes during the quarter, including 29 
787s. Commercial Airplanes captured an order for 12 787 aircraft for All Nippon 
Airways, and produced the 1000th 787 at Boeing South Carolina. Commercial 
Airplanes backlog included over 5,000 airplanes valued at $352 billion. 
 
Defense, Space & Security 
 
Table 5. Defense, Space & Security First Quarter 
 
(Dollars in Millions)               2020    2019   Change 
 
Revenues                           $6,042  $6,587   (8)% 
 
Earnings from Operations           ($191)    $852    NM 
 
Operating Margin                   (3.2)%   12.9%    NM 
 
Defense, Space & Security first-quarter revenue decreased to $6.0 billion 
primarily driven by a charge on the KC-46A Tanker (Table 5). First-quarter 
operating margin decreased to (3.2) percent primarily due to a pre-tax charge 
of $827 million for the KC-46A Tanker, of which $551 million was driven by 
costs associated with the agreement signed in April with the U.S. Air Force to 
develop and integrate a new Remote Vision System, while the remaining costs 
reflect productivity inefficiencies and COVID-19 related factory disruption. A 
number of other programs were also impacted by COVID-19, further reducing 
margin in the quarter. 
 
During the quarter, Defense, Space & Security received an award for 18 P-8A 
Poseidon maritime patrol aircraft, as well as a contract to develop a SB>1 
DEFIANTT prototype for the U.S. Army's Future Long Range Assault Aircraft 
program. Defense, Space & Security also completed the System Design Review for 
MQ-25. 
 
Backlog at Defense, Space & Security was $64 billion, of which 28 percent 
represents orders from customers outside the U.S. 
 
Global Services 
 
Table 6. Global Services First Quarter 
 
(Dollars in Millions)     2020    2019   Change 
 
Revenues                 $4,628  $4,619     - 
 
Earnings from Operations   $708    $653    8% 
 
Operating Margin          15.3%   14.1%  1.2 Pts 
 
Global Services first-quarter revenue was $4.6 billion, reflecting higher 
government services volume, largely offset by lower commercial services volume 
due to COVID-19. (Table 6). First-quarter operating margin increased to 15.3 
percent primarily due to favorable government services performance. 
 
During the quarter, Global Services was awarded a P-8A integrated logistics 
services and site activation support contract modification from the U.S. Navy 
and the government of Australia and secured a logistics, components and 
services contract for the U.S. Army AH-64 Apache fleet. At the Singapore 
Airshow, Global Services announced several consumable and expendable services 
agreements as well as digital solutions agreements with multiple Asia-Pacific 
airlines. 
 
Additional Financial Information 
 
Table 7. Additional Financial Information First Quarter 
 
(Dollars in Millions)                      2020    2019 
 
Revenues 
 
Boeing Capital                               $65     $66 
 
Unallocated items, eliminations and other  ($32)  ($177) 
 
Earnings from Operations 
 
Boeing Capital                               $24     $20 
 
FAS/CAS service cost adjustment             $347    $364 
 
Other unallocated items and eliminations  ($173)  ($712) 
 
Other income, net                           $112    $106 
 
Interest and debt expense                 ($262)  ($123) 
 
Effective tax rate                         57.4%    7.9% 
 
At quarter-end, Boeing Capital's net portfolio balance was $2.2 billion. 
Revenue from other unallocated items and eliminations increased primarily due 
to the timing of eliminations for intercompany aircraft deliveries. The change 
in earnings from other unallocated items and eliminations is primarily due to 
lower deferred compensation expense and a customer financing impairment charge 
taken in the first quarter of 2019. Interest and debt expense increased due to 
higher debt balances. The first quarter effective tax rate reflects tax 
benefits related to the 5 year net operating loss carryback provision in the 
Coronavirus Aid, Relief, and Economic Security (CARES) Act as well as the 
impact of pre-tax losses. 
 
Non-GAAP Measures Disclosures 
 
We supplement the reporting of our financial information determined under 
Generally Accepted Accounting Principles in the United States of America (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 (Loss)/Earnings, Core Operating Margin and Core (Loss)/Earnings 
Per Share 
 
Core operating (loss)/earnings is defined as GAAP (loss)/earnings from 
operations excluding the FAS/CAS service cost adjustment. The FAS/CAS service 
cost adjustment represents the difference between the FAS pension and 
postretirement service costs calculated under GAAP and costs allocated to the 
business segments. Core operating margin is defined as core operating (loss)/ 
earnings expressed as a percentage of revenue. Core (loss)/earnings per share 
is defined as GAAP diluted (loss)/earnings per share excluding the net (loss)/ 
earnings per share impact of the FAS/CAS service cost adjustment and 
Non-operating pension and postretirement expenses. Non-operating pension and 
postretirement expenses represent the components of net periodic benefit costs 
other than service cost. Pension costs, comprising service and prior service 
costs computed in accordance with GAAP are allocated to Commercial Airplanes 
and BGS businesses supporting commercial customers. Pension costs allocated to 
BDS and BGS businesses supporting government customers 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 (loss)/earnings, core operating 
margin and core (loss)/earnings per share for purposes of evaluating and 
forecasting underlying business performance. Management believes these core 
(loss)/earnings measures provide investors additional insights into operational 
performance as they exclude non-service 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 GAAP operating cash flow reduced by capital expenditures for 
property, plant and equipment. 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 
of free cash flow to GAAP operating 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 generally 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 expectations and 
assumptions that we believe to be reasonable when made, but that 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) 
the COVID-19 pandemic and related government actions, including with respect to 
our operations, our liquidity and access to funding, the health of our 
customers and suppliers, and future demand for our products and services; (2) 
the 737 MAX, including the timing and conditions of 737 MAX regulatory 
approvals, delays in the resumption of production, lower than planned 
production rates and/or delivery rates, and increased considerations to 
customers and suppliers, (3) general conditions in the economy and our 
industry, including those due to regulatory changes; (4) our reliance on our 
commercial airline customers; (5) the overall health of our aircraft production 
system, planned commercial aircraft production rate changes, our commercial 
development and derivative aircraft programs, and our aircraft being subject to 
stringent performance and reliability standards; (6) changing budget and 
appropriation levels and acquisition priorities of the U.S. government; (7) our 
dependence on U.S. government contracts; (8) our reliance on fixed-price 
contracts; (9) our reliance on cost-type contracts; (10) uncertainties 
concerning contracts that include in-orbit incentive payments; (11) our 
dependence on our subcontractors and suppliers, as well as the availability of 
raw materials; (12) changes in accounting estimates; (13) changes in the 
competitive landscape in our markets; (14) our non-U.S. operations, including 
sales to non-U.S. customers; (15) threats to the security of our or our 
customers' information; (16) potential adverse developments in new or pending 
litigation and/or government investigations; (17) customer and aircraft 
concentration in our customer financing portfolio; (18) changes in our ability 
to obtain debt on commercially reasonable terms and at competitive rates; (19) 
realizing the anticipated benefits of mergers, acquisitions, joint ventures/ 
strategic alliances or divestitures; (20) the adequacy of our insurance 
coverage to cover significant risk exposures; (21) potential business 
disruptions, including those related to physical security threats, information 
technology or cyber-attacks, epidemics, sanctions or natural disasters; (22) 
work stoppages or other labor disruptions; (23) substantial pension and other 
postretirement benefit obligations; and (24) potential environmental 
liabilities. 
 
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:  Maurita Sutedja or Keely Moos (312) 544-2140 
 
Communications:      Michael Friedman media@boeing.com 
 
 
 
                   The Boeing Company and Subsidiaries 
 
                  Consolidated Statements of Operations 
 
                               (Unaudited) 
 
                                                        Three months ended 
                                                             March 31 
 
(Dollars in millions, except per share data)                2020      2019 
 
Sales of products                                        $14,191   $20,225 
 
Sales of services                                          2,717     2,692 
 
Total revenues                                            16,908    22,917 
 
Cost of products                                        (14,713)  (16,238) 
 
Cost of services                                         (2,043)   (2,389) 
 
Boeing Capital interest expense                             (12)      (18) 
 
Total costs and expenses                                (16,768)  (18,645) 
 
                                                             140     4,272 
 
(Loss)/income from operating investments, net                (2)        20 
 
General and administrative expense                         (873)   (1,184) 
 
Research and development expense, net                      (672)     (866) 
 
Gain on dispositions, net                                     54       108 
 
(Loss)/earnings from operations                          (1,353)     2,350 
 
Other income, net                                            112       106 
 
Interest and debt expense                                  (262)     (123) 
 
(Loss)/earnings before income taxes                      (1,503)     2,333 
 
Income tax benefit/(expense)                                 862     (184) 
 
Net (loss)/earnings                                       ($641)    $2,149 
 
Less: net loss attributable to noncontrolling interest     ($13) 
 
Net (loss)/earnings attributable to Boeing Shareholders   ($628)    $2,149 
 
Basic (loss)/earnings per share                          ($1.11)     $3.79 
 
Diluted (loss)/earnings per share                        ($1.11)     $3.75 
 
Weighted average diluted shares (millions)                 565.9     572.4 
 
 
 
                      The Boeing Company and Subsidiaries 
 
                 Consolidated Statements of Financial Position 
 
                                 (Unaudited) 
 
(Dollars in millions, except per share data)              March 31  December 31 
                                                              2020         2019 
 
Assets 
 
Cash and cash equivalents                                  $15,039       $9,485 
 
Short-term and other investments                               488          545 
 
Accounts receivable, net                                     3,211        3,266 
 
Unbilled receivables, net                                    9,365        9,043 
 
Current portion of customer financing, net                     149          162 
 
Inventories                                                 80,020       76,622 
 
Other current assets, net                                    2,739        3,106 
 
Total current assets                                       111,011      102,229 
 
Customer financing, net                                      2,116        2,136 
 
Property, plant and equipment, net of accumulated           12,405       12,502 
depreciation of $19,591 and $19,342 
 
Goodwill                                                     8,057        8,060 
 
Acquired intangible assets, net                              3,256        3,338 
 
Deferred income taxes                                          678          683 
 
Investments                                                  1,124        1,092 
 
Other assets, net of accumulated amortization of $611 and    4,428        3,585 
$580 
 
Total assets                                              $143,075     $133,625 
 
Liabilities and equity 
 
Accounts payable                                           $14,963      $15,553 
 
Accrued liabilities                                         21,483       22,868 
 
Advances and progress billings                              52,883       51,551 
 
Short-term debt and current portion of long-term debt        5,173        7,340 
 
Total current liabilities                                   94,502       97,312 
 
Deferred income taxes                                          336          413 
 
Accrued retiree health care                                  4,483        4,540 
 
Accrued pension plan liability, net                         15,962       16,276 
 
Other long-term liabilities                                  3,398        3,422 
 
Long-term debt                                              33,754       19,962 
 
Shareholders' equity: 
 
Common stock, par value $5.00 - 1,200,000,000 shares         5,061        5,061 
authorized; 1,012,261,159 shares issued 
 
Additional paid-in capital                                   6,595        6,745 
 
Treasury stock, at cost - 447,947,807 and 449,352,405     (54,842)     (54,914) 
shares 
 
Retained earnings                                           49,854       50,644 
 
Accumulated other comprehensive loss                      (16,333)     (16,153) 
 
Total shareholders' equity                                 (9,665)      (8,617) 
 
Noncontrolling interests                                       305          317 
 
Total equity                                               (9,360)      (8,300) 
 
Total liabilities and equity                              $143,075     $133,625 
 
 
 
                      The Boeing Company and Subsidiaries 
 
                     Consolidated Statements of Cash Flows 
 
                                  (Unaudited) 
 
                                                                 Three months 
                                                                    ended 
                                                                   March 31 
 
(Dollars in millions)                                             2020     2019 
 
Cash flows - operating activities: 
 
Net (loss)/earnings                                             ($641)   $2,149 
 
Adjustments to reconcile net earnings to net cash provided by 
operating activities: 
 
Non-cash items - 
 
Share-based plans expense                                           55       47 
 
Depreciation and amortization                                      556      521 
 
Investment/asset impairment charges, net                            26       34 
 
Customer financing valuation adjustments                                    249 
 
Gain on dispositions, net                                         (54)    (108) 
 
Other charges and credits, net                                      97       74 
 
Changes in assets and liabilities - 
 
Accounts receivable                                               (54)      206 
 
Unbilled receivables                                             (402)    (183) 
 
Advances and progress billings                                   1,337    1,857 
 
Inventories                                                    (2,973)  (2,725) 
 
Other current assets                                               328      164 
 
Accounts payable                                               (1,030)    1,624 
 
Accrued liabilities                                              (583)    (919) 
 
Income taxes receivable, payable and deferred                    (892)      116 
 
Other long-term liabilities                                       (69)    (281) 
 
Pension and other postretirement plans                           (179)    (188) 
 
Customer financing, net                                             23      152 
 
Other                                                              153      (1) 
 
  Net cash (used)/provided by operating activities             (4,302)    2,788 
 
Cash flows - investing activities: 
 
Property, plant and equipment additions                          (428)    (501) 
 
Property, plant and equipment reductions                            58      110 
 
Acquisitions, net of cash acquired                                        (276) 
 
Contributions to investments                                     (244)    (457) 
 
Proceeds from investments                                          227      366 
 
Other                                                                8      (9) 
 
  Net cash used by investing activities                          (379)    (767) 
 
Cash flows - financing activities: 
 
New borrowings                                                  17,433    5,237 
 
Debt repayments                                                (5,854)  (4,374) 
 
Contributions from noncontrolling interests                                   7 
 
Stock options exercised                                             21       42 
 
Employee taxes on certain share-based payment arrangements       (162)    (233) 
 
Common shares repurchased                                               (2,341) 
 
Dividends paid                                                 (1,158)  (1,161) 
 
  Net cash provided/(used) by financing activities              10,280  (2,823) 
 
Effect of exchange rate changes on cash and cash equivalents,     (47)        1 
including restricted 
 
Net increase/(decrease) in cash & cash equivalents, including    5,552    (801) 
restricted 
 
Cash & cash equivalents, including restricted, at beginning of   9,571    7,813 
year 
 
Cash & cash equivalents, including restricted, at end of        15,123    7,012 
period 
 
Less restricted cash & cash equivalents, included in                84      176 
Investments 
 
Cash and cash equivalents at end of period                     $15,039   $6,836 
 
                      The Boeing Company and Subsidiaries 
                       Summary of Business Segment Data 
                                  (Unaudited) 
 
Effective at the beginning of 2020, certain programs were realigned between our 
Defense, Space & Security segment and Unallocated items, eliminations and 
other. Business segment data for 2019 has been adjusted to reflect the 
realignment. 
 
                                                        Three months ended 
                                                             March 31 
 
(Dollars in millions)                                       2020     2019 
 
Revenues: 
 
Commercial Airplanes                                      $6,205  $11,822 
 
Defense, Space & Security                                  6,042    6,587 
 
Global Services                                            4,628    4,619 
 
Boeing Capital                                                65       66 
 
Unallocated items, eliminations and other                   (32)    (177) 
 
Total revenues                                           $16,908  $22,917 
 
(Loss)/earnings from operations: 
 
Commercial Airplanes                                    ($2,068)   $1,173 
 
Defense, Space & Security                                  (191)      852 
 
Global Services                                              708      653 
 
Boeing Capital                                                24       20 
 
Segment operating (loss)/profit                          (1,527)    2,698 
 
Unallocated items, eliminations and other                  (173)    (712) 
 
FAS/CAS service cost adjustment                              347      364 
 
(Loss)/earnings from operations                          (1,353)    2,350 
 
Other income, net                                            112      106 
 
Interest and debt expense                                  (262)    (123) 
 
(Loss)/earnings before income taxes                      (1,503)    2,333 
 
Income tax benefit/(expense)                                 862    (184) 
 
Net (loss)/earnings                                       ($641)   $2,149 
 
Less: Net loss attributable to noncontrolling interest      (13) 
 
Net (loss)/earnings attributable to Boeing Shareholders    (628)    2,149 
 
Research and development expense, net: 
 
Commercial Airplanes                                        $425     $564 
 
Defense, Space & Security                                    163      184 
 
Global Services                                               30       40 
 
Other                                                         54       78 
 
Total research and development expense, net                 $672     $866 
 
Unallocated items, eliminations and other: 
 
Share-based plans                                          ($18)    ($14) 
 
Deferred compensation                                        193    (102) 
 
Amortization of previously capitalized interest             (23)     (24) 
 
Customer financing impairment                                       (250) 
 
Research and development expense, net                       (54)     (78) 
 
Eliminations and other unallocated items                   (271)    (244) 
 
Sub-total (included in core operating earnings)            (173)    (712) 
 
Pension FAS/CAS service cost adjustment                      255      274 
 
Postretirement FAS/CAS service cost adjustment                92       90 
 
FAS/CAS service cost adjustment                              347      364 
 
Total                                                       $174   ($348) 
 
 
 
                      The Boeing Company and Subsidiaries 
 
                         Operating and Financial Data 
 
                                  (Unaudited) 
 
Deliveries                                           Three months ended 
                                                          March 31 
 
Commercial Airplanes                                   2020           2019 
 
737                                                       5             89 
 
747                                                       -              2 
 
767                                                      10             12 
 
777                                                       6             10  (1) 
 
787                                                      29             36 
 
Total                                                    50            149 
 
Note: Aircraft accounted for as revenues by BCA and as operating leases in 
consolidation identified by parentheses 
 
Defense, Space & Security 
 
AH-64 Apache (New)                                        2              6 
 
AH-64 Apache (Remanufactured)                            14             22 
 
C-17 Globemaster III                                      -              - 
 
C-40A                                                     -              - 
 
CH-47 Chinook (New)                                       9              7 
 
CH-47 Chinook (Renewed)                                   1              4 
 
F-15 Models                                               -              4 
 
F/A-18 Models                                             5              7 
 
KC-46 Tanker                                              5              7 
 
P-8 Models                                                3              3 
 
Commercial and Civil Satellites                           -              - 
 
Military Satellites                                       -              - 
 
Total backlog (Dollars in millions)                March 31    December 31 
                                                       2020           2019 
 
Commercial Airplanes                               $351,778       $376,593 
 
Defense, Space & Security                            63,578         63,691 
 
Global Services                                      22,747         22,902 
 
Unallocated items, eliminations and other               491            217 
 
Total backlog                                      $438,594       $463,403 
 
Contractual backlog                                $414,165       $436,473 
 
Unobligated backlog                                  24,429         26,930 
 
Total backlog                                      $438,594       $463,403 
 
                      The Boeing Company and Subsidiaries 
                      Reconciliation of Non-GAAP Measures 
                                  (Unaudited) 
 
The tables provided below reconcile the non-GAAP financial measures core 
operating (loss)/earnings, core operating margin, and core (loss)/earnings per 
share with the most directly comparable GAAP financial measures, (loss)/ 
earnings from operations, operating margin, and diluted (loss)/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)  First Quarter     First Quarter 
                                                   2020              2019 
 
                                                $       Per       $       Per 
                                             millions  Share   millions  Share 
 
Revenues                                       16,908            22,917 
 
(Loss)/earnings from operations (GAAP)        (1,353)             2,350 
 
Operating margin (GAAP)                        (8.0)%             10.3% 
 
FAS/CAS service cost adjustment: 
 
Pension FAS/CAS service cost adjustment         (255)             (274) 
 
Postretirement FAS/CAS service cost              (92)              (90) 
adjustment 
 
FAS/CAS service cost adjustment                 (347)             (364) 
 
Core operating (loss)/earnings (non-GAAP)    ($1,700)            $1,986 
 
Core operating margin (non-GAAP)              (10.1)%              8.7% 
 
Diluted (loss)/earnings per share (GAAP)              ($1.11)             $3.75 
 
Pension FAS/CAS service cost adjustment        ($255)  (0.45)    ($274)  (0.48) 
 
Postretirement FAS/CAS service cost              (92)  (0.16)      (90)  (0.16) 
adjustment 
 
Non-operating pension expense                    (87)  (0.16)      (93)  (0.16) 
 
Non-operating postretirement expense               13    0.02        27    0.05 
 
Provision for deferred income taxes on             88    0.16        90    0.16 
adjustments 1 
 
Subtotal of adjustments                        ($333) ($0.59)    ($340) ($0.59) 
 
Core (loss)/earnings per share (non-GAAP)             ($1.70)             $3.16 
 
Weighted average diluted shares (in                     565.9             572.4 
millions) 
 
1 The income tax impact is calculated using the U.S. 
corporate statutory tax rate. 
 
 
 
 
END 
 

(END) Dow Jones Newswires

April 29, 2020 07:31 ET (11:31 GMT)

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