Boeing reports record 2017 results

Boeing issued this report:

Fourth-Quarter 2017

  • Record operating earnings of $3.0 billion with operating cash flow of $2.9 billion on strong performance
  • GAAP EPS of $5.18 and core EPS (non-GAAP)* of $4.80 on strong deliveries, performance and tax reform

Full-Year 2017

  • Record operating cash flow of $13.3 billion; repurchased 46.1 million shares for $9.2 billion
  • Revenue of $93.4 billion reflecting a record 763 commercial deliveries
  • Backlog remains robust at $488 billion, including a record 5,864 commercial aircraft
  • Cash and marketable securities of $10.0 billion provide strong liquidity

Outlook for 2018

  • Operating cash flow expected to increase to approximately $15.0 billion
  • Revenue guidance of between $96.0 and $98.0 billion reflects commercial deliveries of between 810 and 815
  • 2018 GAAP EPS of between $15.90 and $16.10; core EPS (non-GAAP)* of between $13.80 and $14.00

 

Table 1. Summary Financial Results

Fourth Quarter

Full Year

(Dollars in Millions, except per share data)

2017

2016

Change

2017

2016

Change

Revenues

$25,368

$23,286

9%

$93,392

$94,571

(1)%

GAAP

Earnings From Operations

$3,030

$2,183

39%

$10,278

$5,834

76%

Operating Margin

11.9%

9.4%

2.5 Pts

11.0%

6.2%

4.8 Pts

Net Earnings

$3,132

$1,631

92%

$8,197

$4,895

67%

Earnings Per Share

$5.18

$2.59

100%

$13.43

$7.61

76%

Operating Cash Flow

$2,904

$2,832

3%

$13,344

$10,499

27%

Non-GAAP*

Core Operating Earnings

$2,676

$2,064

30%

$8,970

$5,464

64%

Core Operating Margin

10.5%

8.9%

1.6 Pts

9.6%

5.8%

3.8 Pts

Core Earnings Per Share

$4.80

$2.47

94%

$12.04

$7.24

66%

* Non-GAAP measures. Complete definitions of Boeing’s non-GAAP measures are on page 7, “Non-GAAP Measures Disclosures.”     

The Boeing Company reported fourth-quarter revenue of $25.4 billion with GAAP earnings per share of $5.18 and core earnings per share (non-GAAP)* of $4.80 reflecting record deliveries and strong performance, as well as favorable tax reform of $1.74per share (Table 1).

Revenue was $93.4 billion for the full year reflecting deliveries mix with GAAP earnings per share of $13.43 and core earnings per share (non-GAAP)* of $12.04 reflecting strong execution and favorable tax reform.

“Across Boeing our teams delivered a record year of financial and operational performance as they focused on disciplined execution of production and development programs, growing services, and delivering value to customers,” said Boeing Chairman, President and Chief Executive Officer Dennis Muilenburg. “That performance enables increased investments in our people and our business, and greater cash return to shareholders.”

“In 2017 we delivered the first 737 MAX airplanes, launched the 737 MAX 10 and completed the 787-10 first flight, all while delivering more commercial airplanes than ever before. We flew the first KC-46 Tanker to be delivered to the U.S. Air Force, were awarded an initial contract for the Ground Based Strategic Deterrent program, and a contract to provide 36 F-15 fighters to Qatar. We launched Boeing Global Services during the year, to deliver greater lifecycle value, and achieved growth that outpaced the market.”

“We actively positioned for future markets and growth by developing new products and services, investing to build vertical capabilities, launching the HorizonX innovation organization and bringing in new capabilities, including the acquisition of Aurora Flight Sciences. Looking forward, our team remains focused on winning through innovation, driving growth and productivity and extending our position as the world’s leading aerospace company – delivering the best value to our customers, our employees and our shareholders.”

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