In releasing its financial results for the quarter ended Sept 30, 2014, the global aviation company said the total company backlogs at the quarter-end was a record US$ 490 billion, up from US$ 440 billion at the beginning of the quarter, and included net orders for the quarters of US$ 73 billion.
Commercial airplanes booked 501 net orders during the quarter. Backlogs remains strong with over 5,500 airplanes valued at a record of US$ 430 billion.
Boeing reported an increase of 19 per cent in core earnings per share (non-GAAP – Generally Accepted Accounting Principles) to US$ 2.14, driven by strong performance across the company’s businesses.
Third-quarter core operating earnings (non-GAAP) increased 13 per cent to US$ 2.4 billion from the same period of the prior year.
GAAP earnings per share was US$ 1.86 and GAAP earnings from operations was US$ 2.1 billion.
Core earnings per share guidance for 2014 increased US$ 0.20 to between US$ 8.10 and US$ 8.30, from US$ 7.90 to US$ 8.10 on continued strong operating performance.
GAAP earnings per share guidance for 2014 increased to between US$ 6.90 and US$ 7.10, from US$ 6.85 to US$ 7.05.
The company’s operating cash flow before pension contributions in the quarter stood at US$ 1.7 billion, reflecting commercial airplane production rates, strong operating performance and timing of receipts and expenditures.
“Continued strong operating performance across our production and services businesses drove significant growth in earnings per share, and enabled us to continue to capture new business, pushing out order backlog to a record US$ 490 billion,” said Boeing Chairman and Chief Executive Officer, Jim McNerney, in a statement.
“We added net new orders for 501 commercial planes, launched the high-capacity 737 MAX 200, captured NASA contract for the Commercial Crew programme, and returned US$ 1.5 billion to shareholders through dividends and share repurchases.
“With three solid quarters behind us and confidence in our ongoing performance, we are increasing our earnings per share outlook for 2014, as our team remains focused on providing value to our customers and shareholders, profitably ramping up airplane production, executing on our development programmes, and driving productivity and affordability throughout the enterprise,” McNerney said.
During the quarter, the company repurchased eight million shares for US$ 1 billion, leaving US$ 5.8 billion under the current repurchase authorisation expected to be completed over the next one to two years.
The company also paid US$ 0.5 billion in dividends in the quarter.
Commercial Airplanes in the third-quarter increased 15 per cent to a record US$ 16.1 billion on higher deliveries.
During the quarter, the company launched 737 MAX 200 with a commitment for Ryanair for 100 airplanes, and the 737 programme won nearly 2,300 firm orders for the 737 MAX since its launch.
It also delivered the first GEnx-powered 787-9 Dreamliner during the quarter.
Due to the strong demand for the 737 family of airplanes, the company intends to increase the 737 production rate from 42 to 47 per month in 2017, with recently announced plans to increase to 52 per month in 2018.
Boeing Military Aircraft (BMA) third-quarter revenue was US$ 3.5 billion, reflecting higher P-8 deliveries.
Operating margin also increased to 12.4 per cent, reflecting improved performance.
During the quarter, BMA delivered the first U.S. Army Multiyear II configured Chinook.
Global Services & Support (GS&S) third-quarter revenue was US$ 2.3 billion on lower volume, and operating margin was 9.7 per cent, reflecting delivery mix.
During the quarter, GS&S delivered the first upgrade French Airborne Warning and Control System aircraft.
Backlog at Defence, Space & Security was US$ 60 billion, out of which 37 per cent represents orders with international customers.
At quarter-end, Boeing Capital’s net portfolio balance was US$ 3.5 billion, up from US$ 3.4 billion in the second quarter.
— BERNAMA
