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The Boeing (BA) Dennis A. Muilenburg on Q1 2016 Results - Earnings Call Transcript

Q1 2016 Earnings Call

April 27, 2016 10:30 am ET


Troy J. Lahr - Vice President-Investor Relations

Dennis A. Muilenburg - Chairman, President & Chief Executive Officer

Gregory D. Smith - Executive Vice President, Business Development & Strategy, Chief Financial Officer

Thomas J. Downey - Senior Vice President-Communications


Myles Alexander Walton - Deutsche Bank Securities, Inc.

Cai von Rumohr - Cowen & Co. LLC

Jason M. Gursky - Citigroup Global Markets, Inc. (Broker)

Peter J. Arment - Sterne Agee CRT

Seth M. Seifman - JPMorgan Securities LLC

Robert M. Spingarn - Credit Suisse Securities (NYSE:USA) LLC (Broker)

Douglas S. Harned - Sanford C. Bernstein & Co. LLC

Carter Copeland - Barclays Capital, Inc.

Hunter K. Keay - Wolfe Research LLC

Howard Alan Rubel - Jefferies LLC

George D. Shapiro - Shapiro Research LLC

Julie Johnsson - Bloomberg LP

Jon Ostrower - The Wall Street Journal

Dominic Gates - The Seattle Times Co.

Alwyn Scott - Thomson Reuters Corp.


Ladies and gentlemen, thank you for standing by. Good day, everyone, and welcome to The Boeing Company's first quarter 2016 earnings conference call. Today's call is being recorded. The management discussion and slide presentation plus the analyst and media question-and-answer sessions are being broadcast live over the Internet.

At this time for opening remarks and introductions, I'm turning the call over to Mr. Troy Lahr, Vice President of Investor Relations for The Boeing Company. Mr. Lahr, please go ahead.

Troy J. Lahr - Vice President-Investor Relations

Thank you and good morning. Welcome to Boeing's first quarter 2016 earnings call. I'm Troy Lahr, and with me today is Dennis Muilenburg, Boeing's Chairman, President and Chief Executive Officer, and Greg Smith, Boeing's Chief Financial Officer. After management comments, we will take your questions. In fairness to others on the call, we ask that you limit yourself to one question. We have provided detailed financial information in today's press release, and you can follow the broadcast and presentation through our website at

Before we begin, I need to remind you that any projections and goals in our discussion today are likely to involve risk, which is detailed in our news release, various SEC filings, and the forward-looking statement disclaimer in the presentation. In addition, we refer you to our earnings release and presentation for disclosures and reconciliation of non-GAAP measures that we use when discussing our results and outlook.

Now I'll turn the call over to Dennis Muilenburg.

Dennis A. Muilenburg - Chairman, President & Chief Executive Officer

Thank you, Troy, and good morning. My comments today will focus on our first quarter results, the ongoing health of our business environment, and our growth plans going forward. After that, Greg will walk you through the details of our financial results and outlook.

Now let's move to slide two. Boeing delivered solid first quarter 2016 financial results that included higher revenue, increased operating cash flow, and core earnings per share that reflect the underlying operating strength of our company. We also continued to execute a balanced cash deployment strategy of investing in innovation, growth and our people, and returning cash to our shareholders. In the first quarter, we repurchased $3.5 billion of Boeing stock and increased our dividend per share 20%, for a payout of $717 million.

Revenue in the first quarter grew to $22.6 billion. Core earnings per share of $1.74 were driven by continued strong operating performance across our core production programs, offset by an additional investment we made to maintain our schedule commitments on the KC-46 tanker program. Net of tanker, core EPS was strong. And as Greg will outline in more detail, our year-end guidance is reaffirmed, driven by our solid operating performance.