Boeing Reports Strong First Quarter Results

KUALA LUMPUR, April 26 (Bernama) -- The Boeing Company's first-quarter net income rose to US$900 million, or US$1.22 per share, on a higher revenue of US$19.4 billion brought on by increased commercial airplane deliveries. Earnings per share rose 56 per cent, reflecting continued strong core performance across the company's businesses, which more than offset higher pension expense. The results also include an increase in earnings of US$0.11 per share related to a reduction in a litigation-related reserve. Earnings per share guidance for 2012 increased to between US$4.15 and US$4.35 to incorporate the reduction in the litigation-related reserve, Boeing said in a statement issued in Chicago on Wednesday. The company reaffirmed its 2012 revenue and operating cash flow outlook. "Strong core operating performance from our production programmes and services businesses continues to drive expanded earnings, revenue and cash flow for Boeing," said Jim McNerney, chairman, president, and chief executive officer. "We also grew our record backlog with more than 300 firm orders for our new 737 MAX, a contract award for 84 new F-15s for Saudi Arabia, and other key wins. "Our outlook for the year remains positive, and our team is focused on meeting our commitments to customers, profitably, increasing commercial airplane production and delivery rates, and building on our strong position in defence, space and security markets." Boeing's quarterly operating cash flow was US$0.8 billion, with higher commercial airplane deliveries, increased orders and strong operating performance more than offsetting continued investment in the 787 program. Total company backlog at quarter-end was a record US$380 billion, up from US$356 billion at the beginning of the year. Net orders for the quarter were US$42 billion, as backlog increased for both Commercial Airplanes and Defense, Space & Security. Boeing Commercial Airplanes' first-quarter revenue increased by 54 percent to US$10.9 billion on higher delivery volume and mix. Operating margin was 9.9 per cent, reflecting the higher deliveries and lower R&D, partially offset by higher period costs and the dilutive impact of 787 and 747-8 deliveries. During the quarter, the first two GEnx-powered 787s were delivered. The first 747-8 Intercontinental VIP airplane was also delivered during the quarter. Commercial Airplanes booked 412 net orders during the quarter, including 301 firm orders for the 737 MAX. Backlog remains strong with more than 4,000 airplanes valued at a record US$308 billion. Boeing Defense, Space & Security's first-quarter revenue increased to US$8.2 billion, while operating margin was 9.0 per cent. Boeing Military Aircraft (BMA) first-quarter revenue increased to US$4.3 billion, primarily due to initial revenue for the F-15 Saudi Arabia contract. Operating margin was 10.1 per cent, reflecting strong execution across various programmes. During the quarter, BMA was awarded both domestic and international C-17 Globemaster III orders and delivered the first production P-8A Poseidon aircraft to the US Navy. Network & Space Systems (N&SS) first-quarter revenue decreased to US$1.8 billion, driven by lower volume on Brigade Combat Team Modernisation and timing on United Launch Alliance. Operating margin was 4.1 per cent, primarily due to the lower volume and satellite mix. During the quarter, N&SS launched its new 702 small satellite product line with a contract for four units through a joint international agreement. Global Services & Support (GS&S) first-quarter revenue increased to US$2.1 billion, due to higher volume in integrated logistics. During the quarter, GS&S was awarded a performance-based logistics contract for the sustainment of South Korea's Air Force fleet of F-15s. Backlog at Defense, Space & Security increased by 20 per cent to US$72 billion on F-15 and C-17 order activity in the quarter, bringing backlog to more than two times the unit's projected 2012 revenue. The company's 2012 financial guidance reflects continued strong core performance offset by higher pension expense and other items. Earnings per share guidance for 2012 increased to between US$4.15 and US$4.35 to incorporate the earnings from the reduction in the litigation-related reserve. All other financial guidance was reaffirmed. -- BERNAMA