Tag Archives: the Boeing Company

Boeing reports first quarter GAAP net earnings of $1.3 billion

The Boeing Company (Chicago, Seattle and Charleston) reported first quarter revenue increased 8 percent to $22.1 billion on higher commercial deliveries. Core earnings per share (non-GAAP) increased 12 percent to $1.97, reflecting strong performance across the company, and GAAP earnings per share was $1.87. The Company reaffirmed its 2015 financial and deliveries guidance.

Boeing logo (medium)

Boeing 1Q15 Financial Results

Operating cash flow in the quarter was $0.1 billion, reflecting timing of receipts and expenditures, commercial airplane production rates and strong operating performance (Table 2). During the quarter, the company repurchased 17 million shares for $2.5 billion, leaving $9.5 billion remaining under the current repurchase authorization which is expected to be completed over approximately the next two to three years. The company also paid $0.6 billion in dividends in the quarter, reflecting an approximately 25 percent increase in dividends per share compared to the same period of the prior year.

Total company backlog at quarter-end was $495 billion, down from $502 billion at the beginning of the year, and included net orders for the quarter of $15 billion.

Commercial Airplanes Deliveries:

Boeing 1Q Deliveries

Commercial Airplanes first-quarter revenue increased 21 percent to $15.4 billion on higher delivery volume and mix (Table 4). First-quarter operating margin was 10.5 percent, reflecting the dilutive impact of higher 787 deliveries.

During the quarter, Commercial Airplanes captured orders for 52 737 MAX airplanes. The 737 program has won over 2,700 firm orders for the 737 MAX since launch. Also during the quarter, the company opened a new Propulsion Systems facility at Boeing South Carolina that will initially support the 737 MAX and 777X, delivered the first Boeing South Carolina-built 787-9 Dreamliner and received 330-minute ETOPS certification on the 747-8 Intercontinental.

Commercial Airplanes booked 110 net orders during the quarter. Backlog remains strong with over 5,700 airplanes valued at $435 billion.

Boeing Military Aircraft (BMA) first-quarter revenue was $2.7 billion, reflecting planned timing of deliveries and mix; operating margin was 9.5 percent. During the quarter, BMA was awarded contracts for 43 Apache helicopters.

Network & Space Systems (N&SS) first-quarter revenue was $1.7 billion, reflecting lower satellites and missile defense system program volume partially offset by higher volume on the Commercial Crew program. Operating margin increased to 9.6 percent on strong performance related to our United Launch Alliance joint venture. During the quarter, the first two all-electric Boeing 702SP satellites were launched on a single rocket.

Global Services & Support (GS&S) first-quarter revenue was $2.2 billion, reflecting slightly lower volume in integrated logistics. Operating margin increased to 14.1 percent on strong operating performance and program mix. During the quarter, GS&S was awarded a combat logistics support agreement with the U.S. Defense Logistics Agency.

Top Copyright Photo: Nick Dean/AirlinersGallery.com. Boeing 747-8JK Intercontinental N6067E (msn 38636) taxies at Paine Field near Everett. How long will Boeing continue to build the iconic Boeing 747? Relive the past with our Boeing 747 slide shows below.

Boeing 747-8 Customers:

Boeing 747-8 Customers

Boeing 747-8 Tail

Boeing 747 aircraft slide show: AG Airline Slide Show

Boeing 747SP aircraft slide show: AG Airline Slide Show

AG Visit the new-look AG

 

Advertisements

IAM withdraws its application to unionize Boeing South Carolina

The International Association of Machinists and Aerospace Workers (IAM) has withdrawn its petition to the NLRB for an April 22 union election at Boeing (Charleston). The unionizing election is essence has now been postponed. The union issued this statement:

IAM logo

Citing a toxic environment and gross violations of workers’ lawful organizing rights, the International Association of Machinists and Aerospace Workers (IAM) on April 17 withdrew its petition with the NLRB for an April 22 union election at the Boeing Company in North Charleston, SC. The decision pushes the date for a subsequent election forward by at least six months and was made after IAM organizers conducted home visits with more than 1,700 Boeing workers.

The petition for a union election was filed on March 16, 2015 after a significant number of Boeing workers signed authorization cards expressing interest in union representation. Workers at Boeing had reached out to the IAM regarding numerous workplace concerns, including forced overtime, rising health care costs and a lack of respect on the shop floor.

“After speaking with Boeing workers who we were previously unable to reach, we’ve determined now is not the right time for an election,” said lead IAM organizer Mike Evans. “An atmosphere of threats, harassment and unprecedented political interference has intimidated workers to the point we don’t believe a free and fair election is possible.”

In addition to filing Unfair Labor Practice (ULP) charges, the IAM recently suspended home visits after two organizers were threatened at gunpoint and others reported hostile and near-violent confrontations.

“The right to organize is a legally protected civil right and no one who chooses to exercise that right in North Charleston, SC should fear for their life or safety,” said Evans. “I hold the Boeing Company, South Carolina Governor Nikki Haley and their surrogates responsible for creating an atmosphere of state-sanctioned hostility toward unions and union organizers.”

The IAM will continue to work with Boeing workers and members of the Charleston community to further communicate the benefits of collective bargaining for workers and their local economies. Efforts will also be made to dispel the misinformation spread by Boeing and their allies over recent weeks.

“Boeing workers reached out to us initially because they wanted to be treated fairly on the job and build a better, more secure life for themselves and their families,” said Evans. “Boeing’s campaign of rumors and threats may have succeeded in delaying this election, but the fight to win collective bargaining rights for thousands of Boeing South Carolina workers is far from over.”

Copyright Photo: Arisara Petersen/AirlinersGallery.com. The Boeing 787 Flight Line at North Charleston, South Carolina (CHS).

Boeing reports record fourth quarter revenue and earnings

The Boeing Company (Chicago, Seattle and Charleston) reported record fourth-quarter revenue of $24.5 billion on higher deliveries and core earnings per share (non-GAAP) that increased 23 percent to $2.31, reflecting strong performance across the company. Fourth-quarter 2014 core operating earnings (non-GAAP) increased to $2.3 billion and GAAP earnings from operations increased to $2.0 billion. Fourth-quarter 2013 results included a $406 million non-cash charge ($0.34 per share) related to the A-12 settlement.

Revenue rose 5 percent in the full year to a record $90.8 billion and core earnings per share (non-GAAP) increased 22 percent* to $8.60 on record deliveries. Full-year 2014 GAAP earnings per share was $7.38.

Core earnings per share guidance for 2015 is set at between $8.20 and $8.40, while GAAP earnings per share guidance is established at between $8.10 and $8.30. Revenue guidance is between $94.5 and $96.5 billion, including commercial deliveries of between 750 and 755. Operating cash flow is expected to be greater than $9.0 billion.

Commercial Airplanes fourth-quarter revenue increased 15 percent to a record $16.8 billion on higher delivery volume and mix. Fourth-quarter operating margin was 9.3 percent, reflecting higher planned period costs and the dilutive impact of 787 deliveries partially offset by the delivery volume (Table 4).

During the quarter, the company began production on the fuselage stringers of the first 737 MAX airplane. The 737 program has won over 2,600 firm orders for the 737 MAX since launch. Also during the quarter, the company began final assembly of the 787-9 Dreamliner at the South Carolina facility and broke ground on the 777X composite centers in Everett and St. Louis.

Commercial Airplanes booked 432 net orders during the quarter with a record 1,432 orders in 2014. Backlog remains strong with nearly 5,800 airplanes valued at a record $440 billion.

Read the full report: CLICK HERE

Copyright Photo: Nick Dean/AirlinersGallery.com. How much longer will the Boeing 747-800 be built? Will there be another “Super Bowl Surprise” in support of the Seattle Seahawks? Boeing 747-8JK N6067E (msn 38636) in house colors departs from Paine Field.

Boeing sampler slide show:

Boeing donates 787-8 N787BX (ZA003) to the Museum of Flight

Boeing (Chicago and Seattle) and its employees on November 8 joined the Puget Sound community in celebrating the donation of one of the original 787-8 Dreamliner (N787BX, msn 40692) flight test airplanes to the Museum of Flight in Seattle.

The Dreamliner Boeing donated to the museum is known as ZA003 (N787BX), the third 787-8 produced. The airplane has a unique past, first as part of the 787 flight test and certification program and later circumnavigating the globe several times in 2011 and 2012 during the Dream Tour, which introduced the 787 to more than 68,000 visitors in 23 countries.

“This revolutionary airplane caps the museum’s collection of historic commercial airplanes, beginning with our 1932 Boeing 247, which was the first all-metal, modern airliner,” said Doug King, president and CEO, Museum of Flight. “It was followed by our 1969 prototype 747, the first jumbo jet, and now with the first composite airliner, the 787. It’s an incredible addition to our comprehensive display.”

The celebration at the Museum of Flight included several Boeing employees whose work over the years played a role in the design, build and test of the 787 Dreamliner. Each person disembarked the airplane and presented a special artifact tied to the history of the airplane to museum docents and students from local high schools.

The artifacts given by employees ranged from a commemorative cachet carried aboard the 787’s first flight, to early artist renderings of the 7E7. Those artifacts will now be housed at the Museum of Flight.

ZA003 is the first of three flight test 787-8s Boeing plans to share with museums around the world, the aviation community and future generations of employees and airplane enthusiasts.

About The Museum of Flight:

The independent, non-profit Museum of Flight is one of the largest air and space museums in the world, attracting more than 500,000 visitors annually. The Museum’s collection includes more than 160 historically significant air- and spacecraft, the original manufacturing facility of The Boeing Company, and the world’s only full-scale NASA Space Shuttle Trainer. The Museum’s aviation and space library and archives are the largest on the West Coast. More than 130,000 individuals are served annually by the Museum’s on-site and outreach educational programs. The Museum of Flight is accredited by the American Association of Museums, and is an Affiliate of the Smithsonian Institution.

The Museum of Flight is located at 9404 E. Marginal Way S., Seattle, Exit 158 off Interstate 5 on Boeing Field halfway between downtown Seattle and Sea-Tac Airport. The Museum is open daily from 10 a.m. to 5 p.m.

Top Copyright Photo: Ariel Shocron/AirlinersGallery.com. N787BX stopped at Madrid on its Dream Tour.

Bottom Copyright Photo: Boeing. Boeing 787-8 N787BX is pictured at its new home at Boeing Field.

Boeing 787-8 N787BX (Grd)(Museum of Flight) BFI (Boeing)(LRW)

Boeing reports a third quarter net profit of $1.3 billion, up 21%

Boeing logo (medium)

The Boeing Company (Chicago and Seattle) today reported third quarter revenue increased 7 percent to $23.8 billion on higher deliveries (Table 1). Core earnings per share (non-GAAP) increased 19 percent* to $2.14, driven by strong performance across the company’s businesses. Third-quarter core operating earnings (non-GAAP) increased 13 percent* to $2.4 billion from the same period of the prior year.

GAAP earnings per share was $1.86 and GAAP earnings from operations was $2.1 billion.

Core earnings per share guidance for 2014 increased to between $8.10 and $8.30, from $7.90 to $8.10 on continued strong operating performance. GAAP earnings per share guidance for 2014 increased to between $6.90 and $7.10, from $6.85 to $7.05. Operating cash flow before pension contributions* guidance increased to greater than $7 billion. Commercial Airplanes operating margin guidance increased to approximately 10.5 percent.

Boeing 3Q 2014 Financial Chart

Read the full report: CLICK HERE

 

Boeing responds to the Al Jazeera English documentary on the 787

Boeing logo (medium)

Boeing (Chicago and Seattle) has issued this statement on the Al Jazeera documentary on the 787:

We have not been afforded the opportunity to view the full program, but the promotional trailer and published media reviews suggest that what has been produced is as biased a production as we have seen in some time. It is unfortunate that the producers of this television program appear to have fallen into the trap of distorting facts, relying on claims rejected by courts of law, breathlessly rehashing as “news” stories that have been covered exhaustively in the past and relying on anonymous sources who appear intent only on harming The Boeing Company.

When first contacted by the producers, we accommodated them in order for them to produce a fair and objective report including facilitating factory access, interviews and providing full and open responses to their questions. The 787 is an outstanding airplane delivering value to our customers, but we have also talked candidly in public about its challenging development process. There are no tougher critics about our early performance than Boeing. Unfortunately, the reporting team appears to have chosen to take advantage of our trust and openness and abused their position from the outset by deliberately misrepresenting the purpose, objective and scope of their planned coverage.

This specious production appears to have ignored the factual information provided by Boeing and instead based the majority of its reporting on unnamed sources pursuing their own agendas and a disgruntled former employee engaged in a legal dispute with Boeing. In one instance, the producers resorted to ambush tactics normally seen only in tabloid-style TV news. The anonymous sources the TV program depends on are clearly working with those who seek to harm Boeing and its workers. They appear to have no real interest in truth, safety or better informing the public.

Even on-the-record sources seem to have changed their stories for the producers. For example, former Society of Professional Engineering Employees in Aerospace (SPEEA) President Cynthia Cole said this about the 787’s first flight in 2009: “Today’s flight is a testament to the skill, hard work and diligence Boeing employees put in to get this airplane ready to fly,” SPEEA President Cynthia Cole said in a news release. “Boeing returned to engineering, and that’s what made today possible and successful.” Now, she states in the documentary trailer that Boeing “shortchanged the engineering process.”

Instead of an objective view of the 787’s development, viewers and our employees will see a television program that is neither balanced nor accurate in its portrayal of the airplane, our employees, or our suppliers. This program and those involved with it do a disservice to the hard-working men and women of Boeing and our supplier partners who designed and build the 787.

Furthermore, the program presents a false impression of Boeing South Carolina and the quality of work performed there. Airplanes, whether delivered from South Carolina or Washington, meet the highest safety and quality standards that are verified through robust test, verification and inspection processes. Our data of the current 787 fleet in service show parity in the quality and performance of airplanes manufactured in both locations.

Video: The Al Jazeera documentary on the Boeing 787:

The new Eastern orders 10 Boeing 737-800s

 

Eastern (2nd) 737-800 WL (Eastern)(LRW)

Eastern Air Lines Group, Inc. (2nd) (Miami) has signed an initial order and placed deposits with the Boeing Company for ten (10) firm Next Generation 737-800 aircraft and purchase rights for ten (10) Boeing MAX 8 aircraft.

“Eastern is extremely honored and privileged to be in business with Boeing once again. Eastern’s strong relation­ship with Boeing dates back to the 1930’s, and later Eastern was the first airline to order and operate both the Boeing 727 and 757 aircraft. We will now proudly have the Boeing 737 Next Generation, and eventually the MAX aircraft, as our fleet standard,” said Edward J. Wegel, Eastern’s President and CEO.

Image: Eastern Air Lines Group.

Eastern Airlines (1st): AG Slide Show