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Boeing Company: 100 North Riverside Plaza

The following excerpt is from the company's SEC filing.

Chicago, IL 60606-1596

Boeing Reports Strong Third-Quarter Results; Raises Revenue, EPS and Cash Flow Guidance

Core EPS (non-GAAP)* rose

18 percent

on strong operating performance; GAAP EPS of

Revenue increased

9 percent

$25.8 billion

reflecting record commercial deliveries

Strong operating cash flow of

$2.9 billion

on higher volume

Backlog remains strong at

$485 billion

with nearly

commercial airplane orders


11 million

shares for

$1.5 bi llion

in the quarter and 41 million shares for $6 billion YTD

2015 Core EPS (non-GAAP)* guidance increased

to between

Table 1. Summary Financial Results

Third Quarter

Nine months

(Dollars in Millions, except per share data)








Core Operating Earnings





Core Operating Margin

0.0 Pts

(0.9) Pts

Core Earnings Per Share

Operating Cash Flow Before Pension Contributions





Earnings From Operations





1.1 Pts

0.5 Pts

Net Earnings








* 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

, from

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

$0.5 billion

$95.0 billion

$97.0 billion

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*

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

, leaving

$6.0 billion

remaining under the current repurchase authorization. Year to date, the company repurchased 41 million shares for $6.0 billion. 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.

Table 3. Cash, Marketable Securities and Debt Balances



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

$9.9 billion

, up from

$9.6 billion

at the beginning of the quarter. Debt was

$9.0 billion

, unchanged from the beginning of the quarter (Table 3).

Total company backlog at quarter-end was

, down from

$489 billion

at the beginning of the quarter, and included net orders for the quarter of

$22 billion

Segment Results

Commercial Airplanes

Table 4. Commercial Airplanes

(Dollars in Millions)

Commercial Airplanes Deliveries





Earnings from Operations





(1.2) Pts

(2.0) Pts

Commercial Airplanes third-quarter revenue increased

$17.7 billion

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

$426 billion

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




1.4 Pts

0.7 Pts

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

$8.4 billion

with an operating margin of

12.2 percent

(Table 5).

Boeing Military Aircraft (BMA) third-quarter revenue increased

15 percent

$4.1 billion

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

$2.1 billion

, reflecting higher volume on the Commercial Crew program. Operating margin increased to

11.5 percent

, 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

$2.2 billion

, reflecting the timing of Airborne Early Warning and Control deliveries. Operating margin increased to

12.9 percent

on strong performance. During the quarter, GS&S...