July 25, 2012
Boeing reports second quarter results and raises 2012 EPS guidance
Boeing reported that second-quarter net income rose to $1.0bn, on revenue of $20.0bn. Earnings per share rose 2%, reflecting continued strong core performance across the company’s businesses, which more than offset higher pension expense. Earnings per share guidance for 2012 increased to between $4.40 and $4.60 reflecting the strong core operating performance. The company also increased its revenue guidance to between $79.5 and $81.5bn on higher Defense, Space & Security revenues. Boeing’s quarterly operating cash flow before pension contributions was $1.7bn. Operating cash flow was $0.9bn, with higher commercial airplane deliveries and strong operating performance more than offsetting continued investment in the 787 program and discretionary pension funding. Free cash flow was $0.6bn in the quarter
Boeing Commercial Airplanes second-quarter revenue increased by 34% to $11.8bn on higher delivery volume. Operating margin was 10.2%, reflecting higher period costs and the dilutive impact of 787 and 747-8 deliveries partially offset by the higher deliveries and lower R&D. Commercial Airplanes booked 28 net orders during the quarter. Backlog remains strong with approximately 4,000 airplanes valued at $302bn.