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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
|---|---|---|---|---|---|
| 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 | 0.00% | 220.00 | 210.00 | 230.00 | 0.00 | 01:00:00 |
| Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
|---|---|---|---|---|---|
| 0 | 0 | N/A | 0 |
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TIDMBOE
Boeing Reports Record 2018 Results and Provides 2019 Guidance
CHICAGO, Jan. 30, 2019 /PRNewswire/ --
Fourth Quarter 2018
* Record revenue of $28.3 billion and record operating profit of $4.2 billion
driven by higher volume
* Record GAAP EPS of $5.93 and record core EPS (non-GAAP)* of $5.48 on strong
performance
Full-Year 2018
* Record revenue of $101.1 billion reflecting strong growth across the
portfolio
* Record GAAP EPS of $17.85 and record core EPS (non-GAAP)* of $16.01 driven
by solid execution
* Record operating cash flow of $15.3 billion; repurchased 26.1 million
shares for $9.0 billion
* Total backlog remains robust at $490 billion, including nearly 5,900
commercial airplanes
* Cash and marketable securities of $8.6 billion provide strong liquidity
Outlook for 2019
* Revenue guidance of between $109.5 and $111.5 billion reflects higher
volume across all businesses
* GAAP EPS of between $21.90 and $22.10; core EPS (non-GAAP)* of between
$19.90 and $20.10
* Operating cash flow expected to increase to between $17.0 and $17.5 billion
Table 1. Summary Financial Fourth Quarter Full Year
Results
(Dollars in Millions, 2018 2017 Change 2018 2017 Change
except per share data)
Revenues $28,341 $24,770 14% $101,127 $94,005 8%
GAAP
Earnings From Operations $4,175 $2,978 40% $11,987 $10,344 16%
Operating Margin 14.7% 12.0% 2.7 11.9% 11.0% 0.9
Pts Pts
Net Earnings $3,424 $3,320 3% $10,460 $8,458 24%
Earnings Per Share $5.93 $5.49 8% $17.85 $13.85 29%
Operating Cash Flow $2,947 $2,903 2% $15,322 $13,346 15%
Non-GAAP*
Core Operating Earnings $3,867 $2,589 49% $10,660 $8,906 20%
Core Operating Margin 13.6% 10.5% 3.1 10.5% 9.5% 1.0
Pts Pts
Core Earnings Per Share $5.48 $5.07 8% $16.01 $12.33 30%
*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 fourth-quarter revenue of $28.3 billion,
GAAP earnings per share of $5.93 and core earnings per share (non-GAAP)* of
$5.48, all company records. These results reflect record commercial deliveries,
higher defense and services volume and strong performance which outweighed
favorable tax impacts recorded in the fourth quarter of 2017 (Table 1). Boeing
generated operating cash flow of $2.9 billion, repurchased 1.6 million shares
for $0.6 billion, paid $1.0 billion of dividends and completed the acquisition
of KLX.
Revenue was a record $101.1 billion for the full year reflecting higher
commercial deliveries and increased volume across the company. Records for GAAP
earnings per share of $17.85 and core earnings per share (non-GAAP)* of $16.01
were driven by higher volume, improved mix and solid execution.
"Across the enterprise our team delivered strong core operating performance and
customer focus, driving record revenues, earnings and cash flow and further
extending our global aerospace industry leadership in 2018," said Boeing
Chairman, President and Chief Executive Officer Dennis Muilenburg. "Our
financial performance provided a firm platform to further invest in new growth
businesses, innovation and future franchise programs, as well as in our people
and enabling technologies. In the last 5 years, we have invested nearly $35
billion in key strategic areas of our business, all while increasing cash
returns to shareholders."
"Our One Boeing focus, clear strategies for growth, and leading positions in
large and growing markets, give us confidence for continued strong performance,
revenue expansion and solid execution across all three businesses, which is
reflected in our 2019 guidance."
"We remain focused on executing on our production and development programs as
well as our growth strategy while driving further productivity, quality and
safety improvements, investing in our team and creating more value and
opportunity for our customers, shareholders and employees."
Table 2. Cash Flow Fourth Quarter Full Year
(Millions) 2018 2017 2018 2017
Operating Cash Flow $2,947 $2,903 $15,322 $13,346
Less Additions to Property, Plant & ($495) ($435) ($1,722) ($1,739)
Equipment
Free Cash Flow* $2,452 $2,468 $13,600 $11,607
*Non-GAAP measure; complete definitions of Boeing's non-GAAP measures are on
page 6, "Non-GAAP Measures Disclosures."
Operating cash flow was $2.9 billion in the quarter and $15.3 billion for the
full year, reflecting planned higher commercial airplane production rates and
strong operating performance as well as timing of receipts and expenditures
(Table 2). During the quarter, the company repurchased 1.6 million shares for
$0.6 billion, paid $1.0 billion in dividends, and completed the acquisition of
KLX. For the full year, the company repurchased 26.1 million shares for
$9.0 billion and paid $3.9 billion in dividends. Based on strong cash
generation and confidence in the company's outlook, the board of directors in
December increased the quarterly dividend per share by 20 percent and replaced
the existing share repurchase program with a new $20 billion authorization.
Table 3. Cash, Marketable Securities and Debt Balances Quarter-End
(Billions) Q4 18 Q3 18
Cash $7.7 $8.0
Marketable Securities1 $0.9 $2.0
Total $8.6 $10.0
Debt Balances:
The Boeing Company, net of intercompany loans to BCC $11.3 $9.4
Boeing Capital, including intercompany loans $2.5 $2.5
Total Consolidated Debt $13.8 $11.9
1 Marketable securities consists primarily of time deposits due within one year
classified as "short-term investments."
Cash and investments in marketable securities totaled $8.6 billion, compared to
$10.0 billion at the beginning of the quarter (Table 3). Debt was $13.8
billion, up from $11.9 billion at the beginning of the quarter primarily due to
the issuance of new debt following the KLX acquisition.
Total company backlog at quarter-end was relatively unchanged at $490 billion
and included net orders for the quarter of $27 billion.
Segment Results
Commercial Airplanes
Table 4. Commercial Airplanes Fourth Quarter Full Year
(Dollars in Millions) 2018 2017 Change 2018 2017 Change
Commercial Airplanes 238 209 14% 806 763 6%
Deliveries
Revenues $17,306 15,388 12% $60,715 $58,014 5%
Earnings from Operations $2,704 $1,787 51% $7,879 $5,452 45%
Operating Margin 15.6% 11.6% 4.0 13.0% 9.4% 3.6
Pts Pts
Commercial Airplanes fourth-quarter revenue increased to $17.3 billion
reflecting higher deliveries and favorable mix (Table 4). Fourth-quarter
operating margin increased to 15.6 percent, driven by higher 737 volume and
strong operating performance on production programs, including higher 787
margins.
During the quarter, Commercial Airplanes delivered 238 airplanes, including the
delivery of the 787th 787 Dreamliner and the first 737 MAX Boeing Business Jet.
The 737 program delivered 111 MAX airplanes in the fourth quarter, including
the first MAX delivery from the China Completion Center, and delivered 256 MAX
airplanes in 2018. The first 777X flight test airplane completed final body
join and power-on, and the program remains on track for flight testing this
year and first delivery in 2020.
Commercial Airplanes booked 262 net orders during the quarter, valued at $16
billion. Backlog remains robust with nearly 5,900 airplanes valued at $412
billion.
Defense, Space & Security
Table 5. Defense, Space & Fourth Quarter Full Year
Security
(Dollars in Millions) 2018 2017 Change 2018 2017 Change
Revenues $6,111 $5,257 16% $23,195 $20,561 13%
Earnings from Operations $669 $544 23% $1,594 $2,193 (27%)
Operating Margin 10.9% 10.3% 0.6 6.9% 10.7% (3.8)
Pts Pts
Defense, Space & Security fourth-quarter revenue increased to $6.1 billion
driven by increased volume across F/A-18, satellites, and weapons (Table 5).
Fourth-quarter operating margin increased to 10.9 percent, primarily reflecting
favorable mix.
During the quarter, Defense, Space & Security was awarded contracts for the
second KC-46 Tanker to Japan, a joint ground system to provide tactical
satellite communications for the U.S. Air Force and to modernize 17 Chinooks
for Spain. Defense, Space & Security also completed a successful test for the
U.S. Air Force's Minuteman III and unveiled the SB>1 DEFIANT helicopter for the
U.S. Army. In January, the first two KC-46 Tankers were delivered to the U.S.
Air Force.
Backlog at Defense, Space & Security was $57 billion, of which 30 percent
represents orders from customers outside the U.S.
Global Services
Table 6. Global Services Fourth Quarter Full Year
(Dollars in Millions) 2018 2017 Change 2018 2017 Change
Revenues $4,894 $3,797 29% $17,018 $14,581 17%
Earnings from Operations $732 $559 31% $2,522 $2,246 12%
Operating Margin 15.0% 14.7% 0.3 Pts 14.8% 15.4% (0.6) Pts
Global Services fourth-quarter revenue increased to $4.9 billion, primarily
driven by higher parts volume including the acquisition of KLX (Table 6).
Fourth-quarter operating margin increased to 15.0 percent reflecting improved
performance, partially offset by higher period costs.
During the quarter, Global Services was awarded Performance Based Logistics
contracts for C-17 and F-22 for the U.S. Air Force and F-15 for Qatar as well
as contracts for F/A-18 services for the U.S Navy. Global Services was also
selected by Shenzhen Airlines to provide crew management solutions, making them
the first airline in China to utilize Boeing AnalytX-powered services.
Significant milestones during the quarter included the first KC-46 training
flight with the U.S. Air Force. In addition, Global Services successfully began
integrating KLX and began operations of the Auxiliary Power Unit joint venture
with Safran.
Additional Financial Information
Table 7. Additional Financial Information Fourth Quarter Full Year
(Dollars in Millions) 2018 2017 2018 2017
Revenues
Boeing Capital $60 $73 $274 $307
Unallocated items, eliminations and other ($30) $255 ($75) $542
Earnings from Operations
Boeing Capital $8 $27 $79 $114
FAS/CAS service cost adjustment $308 $389 $1,327 $1,438
Other unallocated items and eliminations ($246) ($328) ($1,414) ($1,099)
Other income, net $29 $32 $92 $123
Interest and debt expense ($158) ($93) ($475) ($360)
Effective tax rate 15.4% (13.8)% 9.9% 16.3%
At quarter-end, Boeing Capital's net portfolio balance was $2.8 billion.
Revenue in other unallocated items and eliminations decreased primarily due to
the timing of eliminations for intercompany aircraft deliveries and the 2017
sale of aircraft previously leased to customers. The change in earnings from
other unallocated items and eliminations is primarily due to timing of expense
allocations. The effective tax rate for the fourth quarter increased from the
same period in the prior year primarily due to the favorable impacts from the
enactment of the Tax Cuts and Jobs Act recorded in the fourth quarter of 2017.
Outlook
Effective in the first quarter of 2019, the Company is making a change to the
accounting for military derivative aircraft. Revenues and costs associated with
military derivative aircraft were previously reported in the Commercial
Airplanes and Defense, Space & Security segments. Beginning in 2019, all
revenues and costs associated with military derivative aircraft will be
reported in the Defense, Space & Security segment. An additional exhibit is
included on page 15 with restated 2018 results adjusted for the change in
accounting for military derivative aircraft as well as the realignment of
certain programs between Global Services and Defense, Space & Security. The
Company has provided this comparable information in the exhibit and below to
help investors understand the 2019 financial outlook (Table 8).
Table 8. 2019 Financial Outlook Restated As Reported
(Dollars in Billions, except per share 2019 2018 2018
data) Results Results
The Boeing Company
Revenue $109.5 -
111.5
GAAP Earnings Per Share $21.90 -
22.10
Core Earnings Per Share* $19.90 -
20.10
Operating Cash Flow $17.0 -
$17.5B
Commercial Airplanes
Deliveries 1 895 - 905
Revenue $64.5 - 65.5 $57.5 $60.7
Operating Margin 14.5% - 13.6% 13.0%
15.0%
Defense, Space & Security
Revenue $26.5 - 27.5 $26.4 $23.2
Operating Margin >11.0% 6.3% 6.9%
Global Services
Revenue $18.5 - 19.0 $17.1 $17.0
Operating Margin >15.0% 14.9% 14.8%
Boeing Capital Portfolio Size Stable
Research & Development $4.1
Capital Expenditures $2.3
Pension Expense 2 $0.0
Effective Tax Rate 16%
*Non-GAAP measure; complete definitions of Boeing's non-GAAP measures are on
page 6, "Non-GAAP Measures Disclosures."
1 Continues to include intercompany deliveries related to military derivative
aircraft
2 Approximately $1.1 billion of pension expense is expected to be allocated to
the business segments
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 Earnings, Core Operating Margin and Core Earnings Per Share
Core operating earnings is defined as GAAP 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 earnings expressed as a
percentage of revenue. Core earnings per share is defined as GAAP diluted
earnings per share excluding the net 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
earnings, core operating margin and core earnings/per share for purposes of
evaluating and forecasting underlying business performance. Management believes
these core 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 pages 13-14.
Free Cash Flow
Free cash flow is defined as GAAP operating cash flow without 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
as a measure to assess both business performance and overall liquidity. Table 2
provides a reconciliation between GAAP operating cash flow and free 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)
general conditions in the economy and our industry, including those due to
regulatory changes; (2) our reliance on our commercial airline customers; (3)
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; (4) changing budget and appropriation levels and
acquisition priorities of the U.S. government; (5) our dependence on U.S.
government contracts; (6) our reliance on fixed-price contracts; (7) our
reliance on cost-type contracts; (8) uncertainties concerning contracts that
include in-orbit incentive payments; (9) our dependence on our subcontractors
and suppliers, as well as the availability of raw materials; (10) changes in
accounting estimates; (11) changes in the competitive landscape in our markets;
(12) our non-U.S. operations, including sales to non-U.S. customers; (13)
threats to the security of our or our customers' information; (14) potential
adverse developments in new or pending litigation and/or government
investigations; (15) customer and aircraft concentration in our customer
financing portfolio; (16) changes in our ability to obtain debt on commercially
reasonable terms and at competitive rates; (17) realizing the anticipated
benefits of mergers, acquisitions, joint ventures/strategic alliances or
divestitures; (18) the adequacy of our insurance coverage to cover significant
risk exposures; (19) potential business disruptions, including those related to
physical security threats, information technology or cyber-attacks, epidemics,
sanctions or natural disasters; (20) work stoppages or other labor disruptions;
(21) substantial pension and other postretirement benefit obligations; (22)
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: Allison Bone (312) 544-2002
The Boeing Company and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
In the first quarter of 2018, we adopted the following Accounting Standards
Updates (ASU), which are reflected in the unaudited Consolidated Financial
Statements on pages 8-14: ASU 2014-09, Revenue from Contracts with Customers
(Topic 606); ASU 2017-07, Compensation - Retirement Benefits (Topic 715):
Improving the Presentation of Net Periodic Pension Cost and Net Periodic
Postretirement Benefit Cost; ASU 2016-18 Statement of Cash Flows (Topic 230)
Restricted Cash; and ASU 2018-02, Income Statement-Reporting Comprehensive
Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated
Other Comprehensive Income.
Twelve months Three months ended
ended December 31
December 31
(Dollars in millions, except per share 2018 2017 2018 2017
data)
Sales of products $90,229 $83,740 $25,381 $22,073
Sales of services 10,898 10,265 2,960 2,697
Total revenues 101,127 94,005 28,341 24,770
Cost of products (72,922) (68,879) (19,788) (17,943)
Cost of services (8,499) (7,663) (2,284) (1,921)
Boeing Capital interest expense (69) (70) (18) (17)
Total costs and expenses (81,490) (76,612) (22,090) (19,881)
19,637 17,393 6,251 4,889
Income/(loss) from operating 111 204 (1) 35
investments, net
General and administrative expense (4,567) (4,095) (1,222) (1,205)
Research and development expense, net (3,269) (3,179) (852) (762)
Gain/(loss) on dispositions, net 75 21 (1) 21
Earnings from operations 11,987 10,344 4,175 2,978
Other income, net 92 123 29 32
Interest and debt expense (475) (360) (158) (93)
Earnings before income taxes 11,604 10,107 4,046 2,917
Income tax (expense)/benefit (1,144) (1,649) (622) 403
Net earnings $10,460 $8,458 $3,424 $3,320
Basic earnings per share $18.05 $14.03 $6.00 $5.57
Diluted earnings per share $17.85 $13.85 $5.93 $5.49
Weighted average diluted shares 586.2 610.7 577.5 605.1
(millions)
The Boeing Company and Subsidiaries
Consolidated Statements of Financial Position
(Unaudited)
(Dollars in millions, except per share data) December 31 December 31
2018 2017
Assets
Cash and cash equivalents $7,637 $8,813
Short-term and other investments 927 1,179
Accounts receivable, net 3,879 2,894
Unbilled receivables, net 10,025 8,194
Current portion of customer financing, net 460 309
Inventories 62,567 61,388
Other current assets 2,335 2,417
Total current assets 87,830 85,194
Customer financing, net 2,418 2,756
Property, plant and equipment, net 12,645 12,672
Goodwill 7,840 5,559
Acquired intangible assets, net 3,429 2,573
Deferred income taxes 284 321
Investments 1,087 1,260
Other assets, net of accumulated amortization of $503 1,826 2,027
and $482
Total assets $117,359 $112,362
Liabilities and equity
Accounts payable $12,916 $12,202
Accrued liabilities 14,808 13,069
Advances and progress billings 50,676 48,042
Short-term debt and current portion of long-term debt 3,190 1,335
Total current liabilities 81,590 74,648
Deferred income taxes 1,736 2,188
Accrued retiree health care 4,584 5,545
Accrued pension plan liability, net 15,323 16,471
Other long-term liabilities 3,059 2,015
Long-term debt 10,657 9,782
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 6,768 6,804
Treasury stock, at cost (52,348) (43,454)
Retained earnings 55,941 49,618
Accumulated other comprehensive loss (15,083) (16,373)
Total shareholders' equity 339 1,656
Noncontrolling interests 71 57
Total equity 410 1,713
Total liabilities and equity $117,359 $112,362
The Boeing Company and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
Twelve months
ended
December 31
(Dollars in millions) 2018 2017
Cash flows - operating activities:
Net earnings $10,460 $8,458
Adjustments to reconcile net earnings to net cash provided
by operating activities:
Non-cash items -
Share-based plans expense 202 202
Depreciation and amortization 2,114 2,047
Investment/asset impairment charges, net 93 113
Customer financing valuation (benefit)/expense (3) 2
(Gain)/loss on dispositions, net (75) (21)
Other charges and credits, net 247 293
Changes in assets and liabilities -
Accounts receivable (795) (840)
Unbilled receivables (1,826) (1,600)
Advances and progress billings 2,636 4,700
Inventories 568 (1,403)
Other current assets 98 (19)
Accounts payable 2 130
Accrued liabilities 1,117 335
Income taxes receivable, payable and deferred (180) 656
Other long-term liabilities 87 94
Pension and other postretirement plans (153) (582)
Customer financing, net 120 1,041
Other 610 (260)
Net cash provided by operating activities 15,322 13,346
Cash flows - investing activities:
Property, plant and equipment additions (1,722) (1,739)
Property, plant and equipment reductions 120 92
Acquisitions, net of cash acquired (3,230) (324)
Contributions to investments (2,607) (3,569)
Proceeds from investments 2,898 3,607
Purchase of distribution rights (69) (131)
Other (11) 6
Net cash used by investing activities (4,621) (2,058)
Cash flows - financing activities:
New borrowings 8,548 2,077
Debt repayments (7,183) (953)
Contributions from noncontrolling interests 35
Stock options exercised 81 311
Employee taxes on certain share-based payment arrangements (257) (132)
Common shares repurchased (9,000) (9,236)
Dividends paid (3,946) (3,417)
Net cash used by financing activities (11,722) (11,350)
Effect of exchange rate changes on cash and cash (53) 80
equivalents, including restricted
Net (decrease) / increase in cash & cash equivalents, (1,074) 18
including restricted
Cash & cash equivalents, including restricted, at beginning 8,887 8,869
of year
Cash & cash equivalents, including restricted, at end of 7,813 8,887
period
Less restricted cash & cash equivalents, included in 176 74
Investments
Cash and cash equivalents at end of period $7,637 $8,813
The Boeing Company and Subsidiaries
Summary of Business Segment Data
(Unaudited)
Twelve months Three months
ended ended
December 31 December 31
(Dollars in millions) 2018 2017 2018 2017
Revenues:
Commercial Airplanes $60,715 $58,014 $17,306 $15,388
Defense, Space & Security 23,195 20,561 6,111 5,257
Global Services 17,018 14,581 4,894 3,797
Boeing Capital 274 307 60 73
Unallocated items, eliminations and other (75) 542 (30) 255
Total revenues $101,127 $94,005 $28,341 $24,770
Earnings from operations:
Commercial Airplanes $7,879 $5,452 $2,704 $1,787
Defense, Space & Security 1,594 2,193 669 544
Global Services 2,522 2,246 732 559
Boeing Capital 79 114 8 27
Segment operating profit 12,074 10,005 4,113 2,917
Unallocated items, eliminations and other (1,414) (1,099) (246) (328)
FAS/CAS service cost adjustment 1,327 1,438 308 389
Earnings from operations 11,987 10,344 4,175 2,978
Other income/(loss), net 92 123 29 32
Interest and debt expense (475) (360) (158) (93)
Earnings before income taxes 11,604 10,107 4,046 2,917
Income tax expense (1,144) (1,649) (622) 403
Net earnings $10,460 $8,458 $3,424 $3,320
Research and development expense, net:
Commercial Airplanes $2,188 $2,247 $572 $492
Defense, Space & Security 788 834 175 235
Global Services 161 140 42 39
Other 132 (42) 63 (4)
Total research and development expense, $3,269 $3,179 $852 $762
net
Unallocated items, eliminations and other:
Share-based plans ($76) ($77) ($16) ($10)
Deferred compensation (19) (240) 93 (66)
Amortization of previously capitalized (92) (96) (25) (28)
interest
Eliminations and other unallocated items (1,227) (686) (298) (224)
Sub-total (included in core operating (1,414) (1,099) (246) (328)
earnings)
Pension FAS/CAS service cost adjustment 1,005 1,127 225 316
Postretirement FAS/CAS service cost 322 311 83 73
adjustment
FAS/CAS service cost adjustment $1,327 $1,438 $308 $389
Total ($87) $339 $62 $61
The Boeing Company and Subsidiaries
Operating and Financial Data
(Unaudited)
Deliveries Twelve months Three months ended
ended December 31
December 31
Commercial Airplanes 2018 2017 2018 2017
737 580 529 173 148
747 6 14 (1) 1 6
767 27 10 14 3
777 48 74 11 16
787 145 136 39 36
Total 806 763 238 209
Note: Aircraft accounted for as revenues by BCA and as a note receivable in
consolidation identified by parentheses
Defense, Space & Security
AH-64 Apache (New) - 11 - 3
AH-64 Apache (Remanufactured) 23 57 11 14
CH-47 Chinook (New) 13 9 2 3
CH-47 Chinook (Renewed) 17 35 3 7
F-15 Models 10 16 2 5
F/A-18 Models 17 23 7 5
P-8 Models 16 19 6 5
Commercial and Civil Satellites 1 3 - -
Military Satellites 1 1 1 1
Total backlog (Dollars in millions) December 31 December 31
2018 2017
Commercial Airplanes $412,307 $410,986
Defense, Space & Security 57,166 44,049
Global Services 21,008 19,605
Total backlog $490,481 $474,640
Contractual backlog $462,070 $456,984
Unobligated backlog 28,411 17,656
Total backlog $490,481 $474,640
The Boeing Company and Subsidiaries
Reconciliation of Non-GAAP Measures
(Unaudited)
The tables provided below reconcile the non-GAAP financial measures core
operating earnings, core operating margin, and core earnings per share with the
most directly comparable GAAP financial measures, earnings from operations,
operating margin, and diluted 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 Fourth Quarter Fourth Quarter
data) 2018 2017
$ Per $ Per
millions Share millions Share
Revenues 28,341 24,770
Earnings from operations (GAAP) 4,175 2,978
Operating margins 14.7% 12.0%
FAS/CAS service cost adjustment:
Pension FAS/CAS service cost adjustment (225) (316)
Postretirement FAS/CAS service cost (83) (73)
adjustment
FAS/CAS service cost adjustment (308) (389)
Core operating earnings (non-GAAP) $3,867 $2,589
Core operating margins (non-GAAP) 13.6% 10.5%
Diluted earnings per share (GAAP) $5.93 $5.49
Pension FAS/CAS service cost adjustment ($225) (0.39) ($316) (0.52)
Postretirement FAS/CAS service cost (83) (0.14) (73) (0.12)
adjustment
Non-operating pension expense (45) (0.08) (29) (0.05)
Non-operating postretirement expense 24 0.04 32 0.05
Provision for deferred income taxes on 69 0.12 135 0.22
adjustments 1
Subtotal of adjustments ($260) ($0.45) ($251) ($0.42)
Core earnings per share (non-GAAP) $5.48 $5.07
Weighted average diluted shares (in 577.5 605.1
millions)
1 The income tax impact is calculated using the U.S.
corporate statutory tax rate.
The Boeing Company and Subsidiaries
Reconciliation of Non-GAAP Measures
(Unaudited)
The tables provided below reconcile the non-GAAP financial measures core
operating earnings, core operating margin, and core earnings per share with the
most directly comparable GAAP financial measures, earnings from operations,
operating margin, and diluted earnings per share. See page 6 of this release
for additional information on the use of these non-GAAP financial measures.
(Dollars in millions, 2019 Guidance Full Year 2018 Full Year 2017
except per share data)
$ Per $ Per $ Per
millions Share millions Share millions Share
Revenues 101,127 94,005
Earnings from operations 11,987 10,344
(GAAP)
Operating margins 11.9% 11.0%
FAS/CAS service cost
adjustment:
Pension FAS/CAS service (1,005) (1,127)
cost adjustment
Postretirement FAS/CAS (322) (311)
service cost adjustment
FAS/CAS service cost (1,327) (1,438)
adjustment ($1,335)
Core operating earnings $10,660 $8,906
(non-GAAP)
Core operating margins 10.5% 9.5%
(non-GAAP)
Diluted earnings per $21.90 $17.85 $13.85
share (GAAP) - 22.10
Pension FAS/CAS service ($1,005) (1.71) ($1,127) (1.84)
cost adjustment ($1,335)
Postretirement FAS/CAS (322) (0.55) (311) (0.51)
service cost adjustment
Non-operating pension ($90) (143) (0.24) (117) (0.19)
expense
Non-operating 101 0.17 123 0.20
postretirement expense
Provision for deferred 287 0.49 501 0.82
income taxes on
adjustments 1
Subtotal of adjustments ($2.00) ($1,082) ($1.84) ($931) ($1.52)
Core earnings per share $19.90 $16.01 $12.33
(non-GAAP) - 20.10
Weighted average diluted 560 - 586.2 610.7
shares (in millions) 565
1 The income tax impact is calculated using the U.S.
corporate statutory tax rate.
The Boeing Company and Subsidiaries
Summary of Business Segment Data - Restated
(Unaudited)
The restated amounts below reflect the change in accounting for military
derivative aircraft as well as the realignment of certain programs between
Global Services and Defense, Space & Security.
(Dollars in millions) 2018 Q4 2018 Q3 2018 Q2 2018 Q1 2018 2017
Revenues:
Commercial Airplanes $57,499 $16,531 $14,071 $13,952 $12,945 $54,612
Defense, Space & Security 26,392 6,874 6,937 6,100 6,481 23,938
Global Services 17,056 4,908 4,101 4,097 3,950 14,611
Boeing Capital 274 60 77 72 65 307
Unallocated items, (94) (32) (40) 37 (59) 537
eliminations and other
Total revenues 101,127 28,341 25,146 24,258 23,382 94,005
Earnings from operations:
Commercial Airplanes 7,830 2,600 2,033 1,785 1,412 5,285
Defense, Space & Security 1,657 771 (247) 376 757 2,383
Global Services 2,536 737 548 604 647 2,251
Boeing Capital 79 8 27 24 20 114
Segment operating profit 12,102 4,116 2,361 2,789 2,836 10,033
Unallocated items, (1,442) (249) (471) (396) (326) (1,127)
eliminations and other
FAS/CAS service cost 1,327 308 337 317 365 1,438
adjustment
Earnings from operations 11,987 4,175 2,227 2,710 2,875 10,344
Other income/(loss), net 92 29 12 (15) 66 123
Interest and debt expense (475) (158) (106) (109) (102) (360)
Earnings before income 11,604 4,046 2,133 2,586 2,839 10,107
taxes
Income tax (expense)/ (1,144) (622) 230 (390) (362) (1,649)
benefit
Net earnings $10,460 $3,424 $2,363 $2,196 $2,477 $8,458
END
(END) Dow Jones Newswires
January 30, 2019 07:32 ET (12:32 GMT)
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