Segment Results
Commercial Airplanes
Boeing Commercial Airplanes second-quarter revenue was $7.4 billion, on 9 percent fewer airplane deliveries driven by anticipated seat supplier challenges and lower planned wide-body deliveries. Operating margin was 9.2 percent as strong performance partially offset the impact of lower deliveries (Table 4).
Commercial Airplanes booked 88 gross orders during the quarter while 20 orders were removed from its order book. This contrasts with the year-ago period when net orders were five airplanes. Contractual backlog remains strong with 3,304 airplanes valued at $252 billion, more than seven times the unit's projected 2010 revenue.
Table 4. Commercial Airplanes Operating Results | |||||||
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(Dollars in Millions) | 2010 | 2009 | Change | 2010 | 2009 | Change | |
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Commercial Airplanes Deliveries | 114 | 125 | (9%) | 222 | 246 | (10%) | |
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Revenues | $7,433 | $8,431 | (12%) | $14,901 | $16,985 | (12%) | |
Earnings from Operations | $683 | $817 | (16%) | $1,362 | $1,234 | 10% | |
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Operating Margins | 9.2% | 9.7% | (0.5)Pts | 9.1% | 7.3% | 1.8 Pts | |
The 787 program continued flight test during the quarter, as a fifth airplane joined the four airplanes already in the flight test program. The Dreamliner completed key flight test milestones, including extreme weather, icing and cruise performance testing. On July 1, the program completed another key milestone with the completion of 787-9 firm configuration. First delivery continues to be planned for the end of this year, although there is added pressure to the schedule and risk that initial delivery may move a few weeks as the company completes flight test and certification requirements. Total firm orders for the 787 program at quarter-end were 863 airplanes from 56 customers.
The 747-8 program continued flight test during the quarter achieving expanded Type Inspection Authorization on June 11. On July 22, the 747-8 added a fourth flight test airplane to its flight test fleet. The company continues to work toward first delivery in the fourth quarter of 2010, although there is increasing pressure on that schedule and risk that it may move into early 2011.
Boeing Defense, Space & Security
Boeing Defense, Space & Security's second-quarter revenue declined 8 percent to $8.0 billion primarily on lower Network & Space Systems volume. Operating margins were 8.9 percent on lower margins in military aircraft and services (Table 5).
