The following excerpt is from the company's
Chicago, IL 60606-1596
Boeing Reports Strong Third-Quarter Results; Raises Revenue, EPS and Cash Flow Guidance
Core EPS (non-GAAP)* rose
on strong operating performance; GAAP EPS of
reflecting record commercial deliveries
Strong operating cash flow of
on higher volume
Backlog remains strong at
commercial airplane orders
$1.5 bi llion
in the quarter and 41 million shares for $6 billion YTD
2015 Core EPS (non-GAAP)* guidance increased
Table 1. Summary Financial Results
(Dollars in Millions, except per share data)
Core Operating Earnings
Core Operating Margin
Core Earnings Per Share
Operating Cash Flow Before Pension Contributions
Earnings From Operations
* Non-GAAP measures. Complete definitions of Boeing’s non-GAAP measures are on page
, “Non-GAAP Measures Disclosures.”
October 21, 2015
– The Boeing Company [NYSE: BA] reported third-quarter revenue increased
on record commercial deliveries (Table 1). Core earnings per share (non-GAAP) for the quarter increased
, reflecting strong performance across the company, and GAAP earnings per share was
Core earnings per share (non-GAAP)* guidance for 2015 increased to between
on continued strong operating performance. GAAP earnings per share guidance for 2015 increased to between
. Operating cash flow guidance increased to approximately $9.5 billion. Revenue guidance increased
higher commercial airplane deliveries. Defense, Space & Security operating margin guidance increased to approximately 10 percent.
“By continuing to profitably deliver on our large and diverse backlog, we are driving strong growth in revenue, earnings and cash flow,” said Boeing President and Chief Executive Officer Dennis Muilenburg. “Solid operating performance across our commercial and defense businesses during the quarter also supported our continued investment in innovation and our people, and our commitment to return cash to shareholders.”
“Three quarters of solid results and confidence in our continued operating performance enabled us to raise our revenue, earnings per share and operating cash flow guidance for the year. Looking ahead, our teams remain focused on improving productivity and quality and delivering improved capabilities to meet our customers’ expectations.”
Table 2. Cash Flow
Operating Cash Flow Before Pension Contributions*
Less Additions to Property, Plant & Equipment
Free Cash Flow*
Operating cash flow in the quarter was
, reflecting commercial airplane production rates and strong operating performance (Table 2). During the quarter, the company repurchased
remaining under the current repurchase authorization. Year to date, the company repurchased 41 million shares for $6.0 billion. The company also paid
in dividends in the quarter, reflecting an approximately
increase in dividends per share compared to the same period of the prior year.
Table 3. Cash, Marketable Securities and Debt Balances
The Boeing Company, net of intercompany loans to BCC
Boeing Capital, including intercompany loans
Total Consolidated Debt
Marketable securities consists primarily of time deposits due within one year classified as "short-term investments."
Cash and investments in marketable securities totaled
, up from
at the beginning of the quarter. Debt was
, unchanged from the beginning of the quarter (Table 3).
Total company backlog at quarter-end was
, down from
at the beginning of the quarter, and included net orders for the quarter of
Table 4. Commercial Airplanes
(Dollars in Millions)
Commercial Airplanes Deliveries
Earnings from Operations
Commercial Airplanes third-quarter revenue increased
on higher delivery volume and mix (Table 4). Third-quarter operating margin was
, reflecting higher R&D and the dilutive impact of higher 787 deliveries partially offset by strong performance on production programs.
During the quarter, the company began final assembly and achieved power-on of the first 737 MAX airplane. In total, the 737 program has won nearly 2,900 firm orders for the 737 MAX since launch. Also during the quarter, the company completed firm configuration for the 777X. The 777X program is on schedule for first delivery in 2020.
Commercial Airplanes booked 166 net orders during the quarter. Backlog remains strong with nearly
airplanes valued at
Defense, Space & Security
Table 5. Defense, Space & Security
Boeing Military Aircraft
Network & Space Systems
Global Services & Support
Total BDS Revenues
Total BDS Earnings from Operations
During the first quarter of 2015, certain programs were realigned between Boeing Military Aircraft and Global Services & Support.
Defense, Space & Security’s third-quarter revenue was
with an operating margin of
Boeing Military Aircraft (BMA) third-quarter revenue increased
primarily as a result of F-15 contract negotiations and BMA operating margin was
. During the quarter, BMA was awarded contracts for 13 P-8A Poseidon aircraft, 22 Apache helicopters, and 15 Chinook helicopters. Also during the quarter, the company and the U.S. Air Force team completed the first flight of a KC-46A tanker aircraft.
Network & Space Systems (N&SS) third-quarter revenue was
, reflecting higher volume on the Commercial Crew program. Operating margin increased to
, reflecting favorable program mix. During the quarter, NASA extended Boeing's international space station contract.
Global Services & Support (GS&S) third-quarter revenue decreased to
, reflecting the timing of Airborne Early Warning and Control deliveries. Operating margin increased to
on strong performance. During the quarter, GS&S...