Boeing Reports Second-Quarter Results

Commercial Airplanes' 2010 delivery guidance remains unchanged at between 460 and 465 airplanes and is sold out. It includes the first few 787 and 747-8 deliveries.  The unit's 2010 revenue guidance is reaffirmed at $31 billion to $32 billion and operating margin guidance is increased to between 7.5 percent and 8.5 percent, up from 6.5 percent to 7.5 percent on strong core operating performance.  

Defense, Space & Security's revenue guidance for 2010 is reaffirmed at between $32 billion and $33 billion with operating margins reduced to approximately 9.5 percent, from approximately 10 percent, reflecting performance to date and the current contracting environment.  

Boeing Capital Corporation has reaffirmed its expectation that its aircraft finance portfolio will continue to reduce as its expected new aircraft financing for 2010 remains at less than $0.5 billion, below normal portfolio runoff through customer payments and depreciation.  BCC continues to expect its debt-to-equity ratio to return to the 5.0-to-1 level in the second half of 2010.

Boeing's 2010 R&D forecast is unchanged at $3.9 billion to $4.1 billion on continued investment in development programs.  The company continues to expect R&D to decrease at an amount greater than $0.5 billion in 2011.  Capital expenditures for 2010 have been reduced to approximately $1.7 billion, down from $1.9 billion.  The company's 2010 non-cash pension expense is expected to be approximately $1.2 billion.

Table 7.  Financial Outlook

(Dollars in Billions, except per-share data)

2010



The Boeing Company


 Revenue

$64 - $66

 Earnings Per Share (GAAP)

$3.50 - $3.80

 Operating Cash Flow 1

~ $0



Boeing Commercial Airplanes


 Deliveries

460 - 465

 Revenue

$31 - $32

 Operating Margin

7.5% - 8.5%



Boeing Defense, Space & Security


 Revenue


   Boeing Military Aircraft

~ $14.5

   Network & Space Systems

~ $9.5

   Global Services & Support

~ $8.5

 Total BDS Revenue

$32 - $33



 Operating Margin


   Boeing Military Aircraft

~ 10%

   Network & Space Systems

~ 8%

   Global Services & Support

~ 10.5%

 Total BDS Operating Margin

~ 9.5%



Boeing Capital Corporation


 Portfolio Size

Lower

 Revenue

~ $0.6

 Return on Assets

> 1.0%



Research & Development

$3.9 - $4.1

Capital Expenditures

~ $1.7

1 After cash pension contributions of less than $0.1 billion and assuming new aircraft financings under $0.5 billion.




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