Boeing reports first-quarter results & reaffirms 2011 guidance
KUALA LUMPUR, April 28 (Bernama) -- Renowned aircraft manufacturer, The Boeing Company, reported first-quarter net income of US$600 million or US$0.78 per share, on revenue of US$14.9 billion.
Operating margin of 6.7 per cent reflects strong core performance across the company's businesses on expected lower volumes and higher pension expense, Boeing said in a statement Wednesday from Chicago.
The year-ago quarter included a US$0.20 per share tax charge on health care legislation.
The company also reaffirmed its 2011 revenue, earnings per share and operating cash flow outlook.
"We're off to a good start in an important year for our company," said Jim McNerney, Boeing Chairman, President and Chief Executive Officer.
"We delivered strong operating performance, made significant progress on 787 and 747-8 flight testing and scored a major win on the US Air Force Tanker programme.
"Our outlook remains positive and our people are focused on meeting customer commitments, driving productivity and competitiveness gains, and capturing growth opportunities in our commercial airplanes and defence, space & security businesses," he said in the statement.
Boeing's quarterly operating cash flow was US$1.0 billion on the expected lower volumes and continued investment in development programmes.
Cash and investments in marketable securities totalled US$7.8 billion at quarter-end down from US$10.5 billion at year-end.
Debt was US$11.7 billion, down from US$12.4 billion at year-end, primarily due to Boeing Capital Corporation maturities.
Total company backlog at quarter-end was US$329 billion, up from US$321 billion, at year-end.
Orders for the quarter were US$23 billion and included a strong commercial order mix, the US Air Force KC-46A Tanker contract and the US Navy P-8A low-rate initial production contract.
Boeing Commercial Airplanes first-quarter revenue decreased five per cent to US$7.1 billion on planned lower 7! 77 deliv eries.
Operating margin was 7.2 per cent, reflecting the lower deliveries and higher research and development.
Flight testing on the 787 programme continued during the quarter, surpassing 3,500 hours on 1,250 flights, Boeing said.
First delivery is expected in the third quarter of 2011. Total firm orders for the 787 at quarter-end were 835 airplanes from 56 customers.
The 747-8 programme flight test also progressed during the quarter, surpassing 2,500 hours on 900 flights.
First flight of the 747-8 Intercontinental was achieved in March. Delivery of the first 747-8 Freighter is planned for mid-2011.
Commercial Airplanes booked 153 gross orders during the quarter while 47 orders were removed from its order book, bringing net orders to 106, up from the year-ago period when net orders were 83 airplanes.
Backlog remained strong with over 3,400 airplanes valued at US$263 billion, Boeing said.
Boeing Defense, Space & Security's first-quarter revenue was US$7.6 billion while operating margin was 8.8 per cent.
Boeing Military Aircraft (BMA) first-quarter revenue increased US$0.2 billion to $3.4 billion, due to higher deliveries.
Operating margin was 10.9 per cent, reflecting improved performance and mix in global strike programmes and lower research and development.
During the quarter, BMA completed full scale static testing of P-8A and achieved first flight on the F-15 radar modernisation program.
Network & Space Systems (N&SS) first-quarter revenue was US$2.3 billion.
Operating margin was 6.1 per cent, reflecting less favorable mix and lower earnings in the satellite business.
During the quarter, N&SS successfully completed an Inmarsat-5 satellite milestone and final acceptance of a SkyTerra satellite.
Global Services & Support (GS&S) first-quarter revenue decreased by US$0.2 billion to US$1.9 billion, due to the conclusion of the KC-10 support programme in 2010 and delivery timi! ng in in tegrated logistics and training systems & services.
Operating margin was 8.5 per cent, reflecting lower earnings in integrated logistics and maintenance, modifications & upgrades.
During the quarter, GS&S was awarded a performance based logistics contract for the C-17 Globemaster III Sustainment Partnership and a follow-on to extend the F-22 sustainment contract.
Backlog at BDS increased slightly to $66 billion, approximately two times the unit's expected 2011 revenue. (Bernama)
Operating margin of 6.7 per cent reflects strong core performance across the company's businesses on expected lower volumes and higher pension expense, Boeing said in a statement Wednesday from Chicago.
The year-ago quarter included a US$0.20 per share tax charge on health care legislation.
The company also reaffirmed its 2011 revenue, earnings per share and operating cash flow outlook.
"We're off to a good start in an important year for our company," said Jim McNerney, Boeing Chairman, President and Chief Executive Officer.
"We delivered strong operating performance, made significant progress on 787 and 747-8 flight testing and scored a major win on the US Air Force Tanker programme.
"Our outlook remains positive and our people are focused on meeting customer commitments, driving productivity and competitiveness gains, and capturing growth opportunities in our commercial airplanes and defence, space & security businesses," he said in the statement.
Boeing's quarterly operating cash flow was US$1.0 billion on the expected lower volumes and continued investment in development programmes.
Cash and investments in marketable securities totalled US$7.8 billion at quarter-end down from US$10.5 billion at year-end.
Debt was US$11.7 billion, down from US$12.4 billion at year-end, primarily due to Boeing Capital Corporation maturities.
Total company backlog at quarter-end was US$329 billion, up from US$321 billion, at year-end.
Orders for the quarter were US$23 billion and included a strong commercial order mix, the US Air Force KC-46A Tanker contract and the US Navy P-8A low-rate initial production contract.
Boeing Commercial Airplanes first-quarter revenue decreased five per cent to US$7.1 billion on planned lower 7! 77 deliv eries.
Operating margin was 7.2 per cent, reflecting the lower deliveries and higher research and development.
Flight testing on the 787 programme continued during the quarter, surpassing 3,500 hours on 1,250 flights, Boeing said.
First delivery is expected in the third quarter of 2011. Total firm orders for the 787 at quarter-end were 835 airplanes from 56 customers.
The 747-8 programme flight test also progressed during the quarter, surpassing 2,500 hours on 900 flights.
First flight of the 747-8 Intercontinental was achieved in March. Delivery of the first 747-8 Freighter is planned for mid-2011.
Commercial Airplanes booked 153 gross orders during the quarter while 47 orders were removed from its order book, bringing net orders to 106, up from the year-ago period when net orders were 83 airplanes.
Backlog remained strong with over 3,400 airplanes valued at US$263 billion, Boeing said.
Boeing Defense, Space & Security's first-quarter revenue was US$7.6 billion while operating margin was 8.8 per cent.
Boeing Military Aircraft (BMA) first-quarter revenue increased US$0.2 billion to $3.4 billion, due to higher deliveries.
Operating margin was 10.9 per cent, reflecting improved performance and mix in global strike programmes and lower research and development.
During the quarter, BMA completed full scale static testing of P-8A and achieved first flight on the F-15 radar modernisation program.
Network & Space Systems (N&SS) first-quarter revenue was US$2.3 billion.
Operating margin was 6.1 per cent, reflecting less favorable mix and lower earnings in the satellite business.
During the quarter, N&SS successfully completed an Inmarsat-5 satellite milestone and final acceptance of a SkyTerra satellite.
Global Services & Support (GS&S) first-quarter revenue decreased by US$0.2 billion to US$1.9 billion, due to the conclusion of the KC-10 support programme in 2010 and delivery timi! ng in in tegrated logistics and training systems & services.
Operating margin was 8.5 per cent, reflecting lower earnings in integrated logistics and maintenance, modifications & upgrades.
During the quarter, GS&S was awarded a performance based logistics contract for the C-17 Globemaster III Sustainment Partnership and a follow-on to extend the F-22 sustainment contract.
Backlog at BDS increased slightly to $66 billion, approximately two times the unit's expected 2011 revenue. (Bernama)
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