Boeing Reports Third-Quarter Results; Raises Cash Flow and EPS

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

At quarter-end, Boeing Capital's net portfolio balance was $3.4 billion. Total pension expense for the third quarter was $100 million, down from $453 million in the same period of the prior year. Revenue increased in other unallocated items and eliminations primarily due to timing of eliminations of intercompany aircraft deliveries, including those accounted for under operating lease. Other unallocated items and eliminations earnings decreased primarily due to timing of eliminations of intercompany aircraft deliveries, offset by higher deferred compensation. The effective tax rate for the third quarter increased to 30.0 percent primarily due to discrete tax benefits recorded in the prior year.

Outlook

The company's 2017 guidance is updated below (Table 8).


Table 8. 2017 Financial Outlook	Current	Prior
(Dollars in Billions, except per share data)	Guidance	Guidance

The Boeing Company
Revenue	$90.5 - 92.5	$90.5 - 92.5

GAAP Earnings Per Share	$11.20 - 11.40	$11.10 - 11.30
Core Earnings Per Share*	$9.90 - 10.10	$9.80 - 10.00

Operating Cash Flow	~$12.5	~$12.25

Commercial Airplanes
Deliveries	760 - 765	760 - 765
Revenue	$55.5 - 56.5	N/A
Operating Margin	9.0% - 9.5	N/A

Defense, Space & Security
Revenue	$20.5 - 21.5	N/A
Operating Margin	>10.5%	N/A

Global Services
Revenue	$14.0 - 14.5	N/A
Operating Margin	15.0% - 15.5	N/A

Boeing Capital
Portfolio Size	Stable	Stable
Revenue	~$0.3	~$0.3
Pre-Tax Earnings	~$0.08	~$0.08

Research & Development	~ $3.4	~ $3.6
Capital Expenditures	~ $2.0	~ $2.0
Pension Expense ¹	~ $0.6	~ $0.6
Effective Tax Rate	~ 28.5%	~ 29.0%

¹ Approximately ($1.0) billion is expected to be recorded in unallocated items and eliminations

* Non-GAAP measures. Complete definitions of Boeing's non-GAAP measures are on page 6, "Non-GAAP Measures Disclosures."

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