Boeing reports fourth-quarter results and provides 2017 guidance

Eleanor Steed
By Eleanor Steed January 26, 2017 17:43

Boeing reports fourth-quarter results and provides 2017 guidance

Boeing has reported fourth-quarter revenue of $23.3 billion with GAAP earnings per share of $2.59 and core earnings per share (non-GAAP) of $2.47. Revenue was $94.6 billion for the full year due to strong commercial deliveries and services growth across the company.

Revenue guidance for 2017 is between $90.5 and $92.5 billion, including increased commercial deliveries of between 760 and 765. Operating cash flow is expected to increase by approximately $250 million to $10.75 billion and capital expenditures are expected to decline by approximately $300 million to $2.3 billion.

“With solid fourth quarter operating performance and a sharp strategic focus, we extended our aerospace market leadership in our centennial year and positioned Boeing for continued growth and success in our second century,” said Chairman, President and Chief Executive Officer Dennis Muilenburg.

“We led the industry in commercial airplane deliveries for the fifth consecutive year, achieved healthy sales in our defense, space and services segments, and produced record operating cash flow, which fueled investment in innovation and our people and generated significant returns to shareholders.”

“Looking forward, our team is intent on accelerating productivity and program execution to deliver increasing cash and profitability from our large and diverse order backlog of nearly $500 billion, standing up our new integrated services business, and capturing an even greater share of the growing global aerospace market to deliver superior value to our customers, shareholders and employees.”

Commercial Airplanes fourth-quarter revenue increased to $16.2 billion on higher planned delivery volume and mix. Fourth-quarter operating margin was 9.1 percent, reflecting delivery mix, lower R&D and improved performance, partially offset by a $243 million pre-tax charge on the KC-46 Tanker program primarily related to additional effort to incorporate previously identified changes into initial production aircraft.

During the quarter, Boeing delivered the 500th 787 Dreamliner and began final assembly of the first 787-10 aircraft. The 737 program has captured more than 3,600 orders for the 737 MAX, including recent 737 MAX 8 orders from GE Capital Aviation Services for 75 airplanes and SpiceJet for 100 airplanes.

Commercial Airplanes booked 288 net orders during the quarter. Backlog remains strong with more than 5,700 airplanes valued at $416 billion.

Eleanor Steed
By Eleanor Steed January 26, 2017 17:43