Boeing Reports Second-Quarter Results
Boeing (BA) reported Q2 2020 results, revealing significant impacts from COVID-19 and the 737 MAX grounding. Revenue dropped 25% to $11.8 billion, with a GAAP loss per share of ($4.20) and a core loss per share of ($4.79). Operating cash flow was negative at ($5.3 billion), and debt surged to $61.4 billion. Despite these challenges, total backlog stood at $409 billion and the company resumed early production of the 737. Boeing's leadership emphasized their commitment to navigating these unprecedented market conditions.
- Total backlog at $409 billion, including over 4,500 commercial airplanes.
- Resumed early production of the 737 program, focusing on safety and quality.
- Increased cash and marketable securities to $32.4 billion.
- Revenue decreased by 25% year-over-year.
- GAAP loss per share of ($4.20) and core loss per share of ($4.79).
- Operating cash flow was ($5.3 billion), a significant decline.
CHICAGO, July 29, 2020 /PRNewswire/ --
- Financial results continue to be significantly impacted by COVID-19 and the 737 MAX grounding
- Revenue of
$11.8 billion , GAAP loss per share of ($4.20) and core (non-GAAP)* loss per share of ($4.79) - Operating cash flow of (
$5.3 ) billion; cash and marketable securities of$32.4 billion - Total backlog of
$409 billion , including more than 4,500 commercial airplanes
Table 1. Summary Financial Results | Second Quarter | First Half | |||||||||
(Dollars in Millions, except per share data) | 2020 | 2019 | Change | 2020 | 2019 | Change | |||||
Revenues | (25)% | (26)% | |||||||||
GAAP | |||||||||||
Loss From Operations | ( | ( | NM | ( | ( | NM | |||||
Operating Margin | (25.1)% | (21.5)% | NM | (15.0)% | (2.7)% | NM | |||||
Net Loss | ( | ( | NM | ( | ( | NM | |||||
Loss Per Share | ( | ( | NM | ( | ( | NM | |||||
Operating Cash Flow | ( | ( | NM | ( | NM | ||||||
Non-GAAP* | |||||||||||
Core Operating Loss | ( | ( | NM | ( | ( | NM | |||||
Core Operating Margin | (28.1)% | (23.8)% | NM | (17.5)% | (4.5)% | NM | |||||
Core Loss Per Share | ( | ( | NM | ( | ( | NM | |||||
*Non-GAAP measure; complete definitions of Boeing's non-GAAP measures are on page 6, "Non-GAAP Measures Disclosures." |
The Boeing Company [NYSE: BA] reported second-quarter revenue of
"We remained focused on the health of our employees and communities while proactively taking action to navigate the unprecedented commercial market impacts from the COVID-19 pandemic," said Boeing President and Chief Executive Officer Dave Calhoun. "We're working closely with our customers, suppliers and global partners to manage the challenges to our industry, bridge to recovery and rebuild to be stronger on the other side."
In the second quarter, Boeing restarted production operations across key sites following temporary pauses to protect its workforce and introduce rigorous new health and safety procedures. Despite the challenges, Boeing continued to deliver across key commercial, defense, space and services programs. The company also resumed early stages of production on the 737 program with a focus on safety, quality and operational excellence. Following the lead of global regulators, Boeing made steady progress toward the safe return to service of the 737, including completion of FAA certification flight tests.
To align to the sharp reduction in commercial market demand in light of COVID-19, the company is taking several actions including further adjusting commercial airplane production rates and reducing employment levels.
"The diversity of our balanced portfolio and our government services, defense and space programs provide some critical stability for us in the near-term as we take tough but necessary steps to adapt for new market realities," Calhoun said. "We are taking the right action to ensure we're well positioned for the future by strengthening our culture, improving transparency, rebuilding trust and transforming our business to become a better, more sustainable Boeing. Air travel has always proven to be resilient - and so has Boeing."
Table 2. Cash Flow | Second Quarter | First Half | |||||
(Millions) | 2020 | 2019 | 2020 | 2019 | |||
Operating Cash Flow | ( | ( | ( | ||||
Less Additions to Property, Plant & Equipment | ( | ( | ( | ( | |||
Free Cash Flow* | ( | ( | ( | ||||
*Non-GAAP measure; complete definitions of Boeing's non-GAAP measures are on page 6, "Non-GAAP Measures Disclosures." |
Operating cash flow was (
Table 3. Cash, Marketable Securities and Debt Balances | Quarter-End | ||
(Billions) | Q2 20 | Q1 20 | |
Cash | |||
Marketable Securities1 | |||
Total | |||
Debt Balances: | |||
The Boeing Company, net of intercompany loans to BCC | |||
Boeing Capital, including intercompany loans | |||
Total Consolidated Debt | |||
1 Marketable securities consists primarily of time deposits due within one year classified as "short-term investments." |
Cash and investments in marketable securities increased to
Total company backlog at quarter-end was
Segment Results
Commercial Airplanes
Table 4. Commercial Airplanes | Second Quarter | First Half | |||||||||
(Dollars in Millions) | 2020 | 2019 | Change | 2020 | 2019 | Change | |||||
Commercial Airplanes Deliveries | 20 | 90 | (78)% | 70 | 239 | (71)% | |||||
Revenues | (65)% | (53)% | |||||||||
Loss from Operations | ( | ( | NM | ( | ( | NM | |||||
Operating Margin | (169.1)% | (104.7)% | NM | (61.6)% | (22.8)% | NM | |||||
Commercial Airplanes second-quarter revenue and operating margin decreased reflecting lower delivery volume, partially offset by a lower 737 MAX customer consideration charge of
The 737 program resumed early stages of production in May and expects to continue to produce at low rates for the remainder of 2020. The COVID-19 pandemic has significantly impacted air travel and reduced near-term demand, resulting in lower production and delivery rate assumptions. Commercial Airplanes expects to gradually increase the 737 production rate to 31 per month by the beginning of 2022, with further gradual increases to correspond with market demand. Estimated potential concessions and other considerations to customers related to the 737 MAX grounding increased by
Commercial Airplanes has further updated its production rate assumptions this quarter to reflect impacts of COVID-19 on its demand outlook, and will continue to assess them on an ongoing basis. The 787 production rate will be reduced to 6 per month in 2021. The 777/777X combined production rate will be gradually reduced to 2 per month in 2021, with 777X first delivery targeted for 2022. At this time, production rate assumptions have not changed on the 767 and 747 programs.
Commercial Airplanes delivered 20 airplanes during the quarter, and backlog included over 4,500 airplanes valued at
Defense, Space & Security
Table 5. Defense, Space & Security | Second Quarter | First Half | |||||||||
(Dollars in Millions) | 2020 | 2019 | Change | 2020 | 2019 | Change | |||||
Revenues | — | (4)% | |||||||||
Earnings from Operations | (38)% | (78)% | |||||||||
Operating Margin | (5.7) Pts | (10.7) Pts | |||||||||
Defense, Space & Security second-quarter revenue was
During the quarter, Defense, Space & Security received an award for three additional MQ-25 unmanned aerial refueling aircraft for the U.S. Navy, as well as contracts for Cruise Missile Systems for the U.S. Navy and a contract for 24 AH-64E Apache helicopters for the Kingdom of Morocco. Defense, Space & Security completed Critical Design Review for the T-7A advanced trainer, achieved first flight and delivery of the F/A-18 U.S. Navy Block III Super Hornet, and achieved first flight of the F-15 Qatar Advanced aircraft. Defense, Space & Security also delivered the 100th U.S. Navy P-8A Poseidon, the 400th V-22 Osprey, and the 2,500th AH-64 Apache.
Backlog at Defense, Space & Security was
Global Services
Table 6. Global Services | Second Quarter | First Half | |||||||||
(Dollars in Millions) | 2020 | 2019 | Change | 2020 | 2019 | Change | |||||
Revenues | (23)% | (11)% | |||||||||
(Loss)/Earnings from Operations | ( | NM | NM | ||||||||
Operating Margin | (19.3)% | NM | NM | ||||||||
Global Services second-quarter revenue decreased to
During the quarter, Global Services was awarded a contract modification for P-8A integrated logistics support for the U.S. Navy. Global Services captured an order for four 767-300 freighter conversions for DHL and was awarded a contract for F-15 pre-delivery training support for the Qatar Emiri Air Force. Global Services also delivered the first F/A-18 Super Hornet test aircraft modified for the U.S. Navy Blue Angels.
Additional Financial Information
Table 7. Additional Financial Information | Second Quarter | First Half | |||||
(Dollars in Millions) | 2020 | 2019 | 2020 | 2019 | |||
Revenues | |||||||
Boeing Capital | |||||||
Unallocated items, eliminations and other | ( | ( | ( | ||||
Earnings from Operations | |||||||
Boeing Capital | ( | ||||||
FAS/CAS service cost adjustment | |||||||
Other unallocated items and eliminations | ( | ( | ( | ( | |||
Other income, net | |||||||
Interest and debt expense | ( | ( | ( | ( | |||
Effective tax rate | |||||||
At quarter-end, Boeing Capital's net portfolio balance was
Non-GAAP Measures Disclosures
We supplement the reporting of our financial information determined under Generally Accepted Accounting Principles in the United States of America (GAAP) with certain non-GAAP financial information. The non-GAAP financial information presented excludes certain significant items that may not be indicative of, or are unrelated to, results from our ongoing business operations. We believe that these non-GAAP measures provide investors with additional insight into the company's ongoing business performance. These non-GAAP measures should not be considered in isolation or as a substitute for the related GAAP measures, and other companies may define such measures differently. We encourage investors to review our financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. The following definitions are provided:
Core Operating Earnings, Core Operating Margin and Core Earnings Per Share
Core operating earnings is defined as GAAP earnings from operations excluding the FAS/CAS service cost adjustment. The FAS/CAS service cost adjustment represents the difference between the FAS pension and postretirement service costs calculated under GAAP and costs allocated to the business segments. Core operating margin is defined as core operating earnings expressed as a percentage of revenue. Core earnings per share is defined as GAAP diluted earnings per share excluding the net earnings per share impact of the FAS/CAS service cost adjustment and Non-operating pension and postretirement expenses. Non-operating pension and postretirement expenses represent the components of net periodic benefit costs other than service cost. Pension costs, comprising service and prior service costs computed in accordance with GAAP are allocated to Commercial Airplanes and BGS businesses supporting commercial customers. Pension costs allocated to BDS and BGS businesses supporting government customers are computed in accordance with U.S. Government Cost Accounting Standards (CAS), which employ different actuarial assumptions and accounting conventions than GAAP. CAS costs are allocable to government contracts. Other postretirement benefit costs are allocated to all business segments based on CAS, which is generally based on benefits paid. Management uses core operating earnings, core operating margin and core earnings per share for purposes of evaluating and forecasting underlying business performance. Management believes these core earnings measures provide investors additional insights into operational performance as they exclude non-service pension and post-retirement costs, which primarily represent costs driven by market factors and costs not allocable to government contracts. A reconciliation between the GAAP and non-GAAP measures is provided on page 13.
Free Cash Flow
Free cash flow is GAAP operating cash flow reduced by capital expenditures for property, plant and equipment. Management believes free cash flow provides investors with an important perspective on the cash available for shareholders, debt repayment, and acquisitions after making the capital investments required to support ongoing business operations and long term value creation. Free cash flow does not represent the residual cash flow available for discretionary expenditures as it excludes certain mandatory expenditures such as repayment of maturing debt. Management uses free cash flow as a measure to assess both business performance and overall liquidity. Table 2 provides a reconciliation of free cash flow to GAAP operating cash flow.
Caution Concerning Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "may," "should," "expects," "intends," "projects," "plans," "believes," "estimates," "targets," "anticipates," and similar expressions generally identify these forward-looking statements. Examples of forward-looking statements include statements relating to our future financial condition and operating results, as well as any other statement that does not directly relate to any historical or current fact. Forward-looking statements are based on expectations and assumptions that we believe to be reasonable when made, but that may not prove to be accurate. These statements are not guarantees and are subject to risks, uncertainties, and changes in circumstances that are difficult to predict. Many factors could cause actual results to differ materially and adversely from these forward-looking statements. Among these factors are risks related to: (1) the COVID-19 pandemic and related government actions, including with respect to our operations, our liquidity, the health of our customers and suppliers, and future demand for our products and services; (2) the 737 MAX, including the timing and conditions of 737 MAX regulatory approvals, lower than planned production rates and/or delivery rates, and increased considerations to customers and suppliers, (3) general conditions in the economy and our industry, including those due to regulatory changes; (4) our reliance on our commercial airline customers; (5) the overall health of our aircraft production system, planned commercial aircraft production rate changes, our commercial development and derivative aircraft programs, and our aircraft being subject to stringent performance and reliability standards; (6) changing budget and appropriation levels and acquisition priorities of the U.S. government; (7) our dependence on U.S. government contracts; (8) our reliance on fixed-price contracts; (9) our reliance on cost-type contracts; (10) uncertainties concerning contracts that include in-orbit incentive payments; (11) our dependence on our subcontractors and suppliers, as well as the availability of raw materials; (12) changes in accounting estimates; (13) changes in the competitive landscape in our markets; (14) our non-U.S. operations, including sales to non-U.S. customers; (15) threats to the security of our or our customers' information; (16) potential adverse developments in new or pending litigation and/or government investigations; (17) customer and aircraft concentration in our customer financing portfolio; (18) changes in our ability to obtain debt on commercially reasonable terms and at competitive rates; (19) realizing the anticipated benefits of mergers, acquisitions, joint ventures/strategic alliances or divestitures; (20) the adequacy of our insurance coverage to cover significant risk exposures; (21) potential business disruptions, including those related to physical security threats, information technology or cyber-attacks, epidemics, sanctions or natural disasters; (22) work stoppages or other labor disruptions; (23) substantial pension and other postretirement benefit obligations; and (24) potential environmental liabilities.
Additional information concerning these and other factors can be found in our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. Any forward-looking statement speaks only as of the date on which it is made, and we assume no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law.
Contact: | ||
Investor Relations: | Maurita Sutedja or Keely Moos (312) 544-2140 | |
Communications: | Michael Friedman media@boeing.com |
The Boeing Company and Subsidiaries | ||||||||
Consolidated Statements of Operations | ||||||||
(Unaudited) | ||||||||
Six months ended June 30 | Three months ended June 30 | |||||||
(Dollars in millions, except per share data) | 2020 | 2019 | 2020 | 2019 | ||||
Sales of products | ||||||||
Sales of services | 5,461 | 5,349 | 2,744 | 2,657 | ||||
Total revenues | 28,715 | 38,668 | 11,807 | 15,751 | ||||
Cost of products | (25,091) | (31,910) | (10,378) | (15,672) | ||||
Cost of services | (4,632) | (4,511) | (2,589) | (2,122) | ||||
Boeing Capital interest expense | (23) | (34) | (11) | (16) | ||||
Total costs and expenses | (29,746) | (36,455) | (12,978) | (17,810) | ||||
(1,031) | 2,213 | (1,171) | (2,059) | |||||
(Loss)/income from operating investments, net | (47) | 5 | (45) | (15) | ||||
General and administrative expense | (2,034) | (1,856) | (1,161) | (672) | ||||
Research and development expense, net | (1,297) | (1,692) | (625) | (826) | ||||
Gain on dispositions, net | 92 | 300 | 38 | 192 | ||||
Loss from operations | (4,317) | (1,030) | (2,964) | (3,380) | ||||
Other income, net | 206 | 213 | 94 | 107 | ||||
Interest and debt expense | (815) | (277) | (553) | (154) | ||||
Loss before income taxes | (4,926) | (1,094) | (3,423) | (3,427) | ||||
Income tax benefit | 1,890 | 301 | 1,028 | 485 | ||||
Net loss | (3,036) | (793) | (2,395) | (2,942) | ||||
Less: net loss attributable to noncontrolling interest | (32) | (19) | ||||||
Net loss attributable to Boeing Shareholders | ( | ( | ( | ( | ||||
Basic loss per share | ( | ( | ( | ( | ||||
Diluted loss per share | ( | ( | ( | ( | ||||
Weighted average diluted shares (millions) | 566.1 | 566.6 | 566.4 | 565.3 | ||||
The Boeing Company and Subsidiaries | ||||
Consolidated Statements of Financial Position | ||||
(Unaudited) | ||||
(Dollars in millions, except per share data) | June 30 2020 | December 31 2019 | ||
Assets | ||||
Cash and cash equivalents | ||||
Short-term and other investments | 12,438 | 545 | ||
Accounts receivable, net | 2,793 | 3,266 | ||
Unbilled receivables, net | 8,570 | 9,043 | ||
Current portion of customer financing, net | 115 | 162 | ||
Inventories | 83,745 | 76,622 | ||
Other current assets, net | 2,624 | 3,106 | ||
Total current assets | 130,277 | 102,229 | ||
Customer financing, net | 2,054 | 2,136 | ||
Property, plant and equipment, net of accumulated depreciation of | 12,182 | 12,502 | ||
Goodwill | 8,064 | 8,060 | ||
Acquired intangible assets, net | 3,019 | 3,338 | ||
Deferred income taxes | 729 | 683 | ||
Investments | 1,066 | 1,092 | ||
Other assets, net of accumulated amortization of | 5,481 | 3,585 | ||
Total assets | ||||
Liabilities and equity | ||||
Accounts payable | ||||
Accrued liabilities | 22,493 | 22,868 | ||
Advances and progress billings | 53,367 | 51,551 | ||
Short-term debt and current portion of long-term debt | 2,922 | 7,340 | ||
Total current liabilities | 92,482 | 97,312 | ||
Deferred income taxes | 404 | 413 | ||
Accrued retiree health care | 4,427 | 4,540 | ||
Accrued pension plan liability, net | 15,663 | 16,276 | ||
Other long-term liabilities | 2,821 | 3,422 | ||
Long-term debt | 58,457 | 19,962 | ||
Total liabilities | 174,254 | 141,925 | ||
Shareholders' equity: | ||||
Common stock, par value | 5,061 | 5,061 | ||
Additional paid-in capital | 6,648 | 6,745 | ||
Treasury stock, at cost - 447,840,938 and 449,352,405 shares | (54,829) | (54,914) | ||
Retained earnings | 47,478 | 50,644 | ||
Accumulated other comprehensive loss | (16,025) | (16,153) | ||
Total shareholders' equity | (11,667) | (8,617) | ||
Noncontrolling interests | 285 | 317 | ||
Total equity | (11,382) | (8,300) | ||
Total liabilities and equity | ||||
The Boeing Company and Subsidiaries | ||||
Consolidated Statements of Cash Flows | ||||
(Unaudited) | ||||
Six months ended June 30 | ||||
(Dollars in millions) | 2020 | 2019 | ||
Cash flows – operating activities: | ||||
Net loss | ( | ( | ||
Adjustments to reconcile net loss to net cash (used)/provided by operating activities: | ||||
Non-cash items – | ||||
Share-based plans expense | 115 | 104 | ||
Depreciation and amortization | 1,103 | 1,067 | ||
Investment/asset impairment charges, net | 280 | 70 | ||
Customer financing valuation adjustments | 9 | 249 | ||
Gain on dispositions, net | (92) | (300) | ||
Other charges and credits, net | 815 | 145 | ||
Changes in assets and liabilities – | ||||
Accounts receivable | 143 | 588 | ||
Unbilled receivables | 285 | (222) | ||
Advances and progress billings | 1,822 | 1,842 | ||
Inventories | (6,741) | (5,233) | ||
Other current assets | 433 | (887) | ||
Accounts payable | (3,181) | 2,002 | ||
Accrued liabilities | 514 | 4,959 | ||
Income taxes receivable, payable and deferred | (1,894) | (921) | ||
Other long-term liabilities | (109) | (509) | ||
Pension and other postretirement plans | (357) | (390) | ||
Customer financing, net | 62 | 347 | ||
Other | 247 | 80 | ||
Net cash (used)/provided by operating activities | (9,582) | 2,198 | ||
Cash flows – investing activities: | ||||
Property, plant and equipment additions | (776) | (922) | ||
Property, plant and equipment reductions | 96 | 331 | ||
Acquisitions, net of cash acquired | (492) | |||
Contributions to investments | (12,557) | (496) | ||
Proceeds from investments | 543 | 758 | ||
Purchase of distribution rights | (20) | |||
Other | 8 | (12) | ||
Net cash used by investing activities | (12,686) | (853) | ||
Cash flows – financing activities: | ||||
New borrowings | 42,302 | 11,670 | ||
Debt repayments | (8,265) | (6,422) | ||
Contributions from noncontrolling interests | 7 | |||
Stock options exercised | 27 | 47 | ||
Employee taxes on certain share-based payment arrangements | (164) | (238) | ||
Common shares repurchased | (2,651) | |||
Dividends paid | (1,158) | (2,317) | ||
Net cash provided by financing activities | 32,742 | 96 | ||
Effect of exchange rate changes on cash and cash equivalents, including restricted | (11) | (2) | ||
Net increase in cash & cash equivalents, including restricted | 10,463 | 1,439 | ||
Cash & cash equivalents, including restricted, at beginning of year | 9,571 | 7,813 | ||
Cash & cash equivalents, including restricted, at end of period | 20,034 | 9,252 | ||
Less restricted cash & cash equivalents, included in Investments | 42 | 85 | ||
Cash and cash equivalents at end of period | ||||
The Boeing Company and Subsidiaries
Summary of Business Segment Data
(Unaudited)
Effective at the beginning of 2020, certain programs were realigned between our Defense, Space & Security segment and Unallocated items, eliminations and other. Business segment data for 2019 has been adjusted to reflect the realignment.
Six months ended June 30 | Three months ended June 30 | |||||||
(Dollars in millions) | 2020 | 2019 | 2020 | 2019 | ||||
Revenues: | ||||||||
Commercial Airplanes | ||||||||
Defense, Space & Security | 12,630 | 13,166 | 6,588 | 6,579 | ||||
Global Services | 8,116 | 9,162 | 3,488 | 4,543 | ||||
Boeing Capital | 134 | 141 | 69 | 75 | ||||
Unallocated items, eliminations and other | (3) | (345) | 29 | (168) | ||||
Total revenues | ||||||||
Earnings/(loss) from operations: | ||||||||
Commercial Airplanes | ( | ( | ( | ( | ||||
Defense, Space & Security | 409 | 1,827 | 600 | 975 | ||||
Global Services | 36 | 1,340 | (672) | 687 | ||||
Boeing Capital | 17 | 57 | (7) | 37 | ||||
Segment operating loss | (4,368) | (549) | (2,841) | (3,247) | ||||
Unallocated items, eliminations and other | (651) | (1,210) | (478) | (498) | ||||
FAS/CAS service cost adjustment | 702 | 729 | 355 | 365 | ||||
Loss from operations | (4,317) | (1,030) | (2,964) | (3,380) | ||||
Other income, net | 206 | 213 | 94 | 107 | ||||
Interest and debt expense | (815) | (277) | (553) | (154) | ||||
Loss before income taxes | (4,926) | (1,094) | (3,423) | (3,427) | ||||
Income tax benefit | 1,890 | 301 | 1,028 | 485 | ||||
Net loss | (3,036) | (793) | (2,395) | (2,942) | ||||
Less: Net loss attributable to noncontrolling interest | (32) | (19) | ||||||
Net loss attributable to Boeing Shareholders | ( | ( | ( | ( | ||||
Research and development expense, net: | ||||||||
Commercial Airplanes | ||||||||
Defense, Space & Security | 330 | 374 | 167 | 190 | ||||
Global Services | 65 | 73 | 35 | 33 | ||||
Other | 116 | 183 | 62 | 105 | ||||
Total research and development expense, net | ||||||||
Unallocated items, eliminations and other: | ||||||||
Share-based plans | ( | ( | ( | ( | ||||
Deferred compensation | 73 | (129) | (120) | (27) | ||||
Amortization of previously capitalized interest | (50) | (45) | (27) | (21) | ||||
Customer financing impairment | (250) | |||||||
Research and development expense, net | (116) | (183) | (62) | (105) | ||||
Eliminations and other unallocated items | (515) | (567) | (244) | (323) | ||||
Sub-total (included in core operating loss) | (651) | (1,210) | (478) | (498) | ||||
Pension FAS/CAS service cost adjustment | 513 | 549 | 258 | 275 | ||||
Postretirement FAS/CAS service cost adjustment | 189 | 180 | 97 | 90 | ||||
FAS/CAS service cost adjustment | 702 | 729 | ||||||
Total | ( | ( | ( | |||||
The Boeing Company and Subsidiaries | |||||||||
Operating and Financial Data | |||||||||
(Unaudited) | |||||||||
Deliveries | Six months ended June 30 | Three months ended June 30 | |||||||
Commercial Airplanes | 2020 | 2019 | 2020 | 2019 | |||||
737 | 9 | 113 | 4 | 24 | |||||
747 | 1 | 4 | 1 | 2 | |||||
767 | 14 | 22 | 4 | 10 | |||||
777 | 10 | 22 | (1) | 4 | 12 | ||||
787 | 36 | 78 | 7 | 42 | |||||
Total | 70 | 239 | 20 | 90 | |||||
Note: Aircraft accounted for as revenues by BCA and as operating leases in consolidation identified by parentheses | |||||||||
Defense, Space & Security | |||||||||
AH-64 Apache (New) | 11 | 10 | 9 | 4 | |||||
AH-64 Apache (Remanufactured) | 32 | 35 | 18 | 13 | |||||
C-17 Globemaster III | — | — | — | — | |||||
C-40A | — | — | — | — | |||||
CH-47 Chinook (New) | 15 | 7 | 6 | — | |||||
CH-47 Chinook (Renewed) | 1 | 9 | — | 5 | |||||
F-15 Models | 3 | 5 | 3 | 1 | |||||
F/A-18 Models | 9 | 10 | 4 | 3 | |||||
KC-46 Tanker | 6 | 12 | 1 | 5 | |||||
P-8 Models | 6 | 8 | 3 | 5 | |||||
Commercial and Civil Satellites | — | 1 | — | 1 | |||||
Military Satellites | — | — | — | — | |||||
Total backlog (Dollars in millions) | June 30 2020 | December 31 2019 | |||||||
Commercial Airplanes | |||||||||
Defense, Space & Security | 64,286 | 63,691 | |||||||
Global Services | 18,168 | 22,902 | |||||||
Unallocated items, eliminations and other | 522 | 217 | |||||||
Total backlog | |||||||||
Contractual backlog | |||||||||
Unobligated backlog | 23,261 | 26,930 | |||||||
Total backlog | |||||||||
The Boeing Company and Subsidiaries
Reconciliation of Non-GAAP Measures
(Unaudited)
The tables provided below reconcile the non-GAAP financial measures core operating loss, core operating margin, and core loss per share with the most directly comparable GAAP financial measures, loss from operations, operating margin, and diluted loss per share. See page 6 of this release for additional information on the use of these non-GAAP financial measures.
(Dollars in millions, except per share data) | Second Quarter 2020 | Second Quarter 2019 | |||||
$ millions | Per Share | $ millions | Per share | ||||
Revenues | 11,807 | 15,751 | |||||
Loss from operations (GAAP) | (2,964) | (3,380) | |||||
Operating margin (GAAP) | (25.1)% | ( | |||||
FAS/CAS service cost adjustment: | |||||||
Pension FAS/CAS service cost adjustment | (258) | (275) | |||||
Postretirement FAS/CAS service cost adjustment | (97) | (90) | |||||
FAS/CAS service cost adjustment | (355) | (365) | |||||
Core operating loss (non-GAAP) | ( | ( | |||||
Core operating margin (non-GAAP) | (28.1)% | ( | |||||
Diluted loss per share (GAAP) | ( | ( | |||||
Pension FAS/CAS service cost adjustment | ( | (0.46) | ( | (0.49) | |||
Postretirement FAS/CAS service cost adjustment | (97) | (0.17) | (90) | (0.16) | |||
Non-operating pension expense | (84) | (0.14) | (94) | (0.17) | |||
Non-operating postretirement expense | 14 | 0.02 | 26 | 0.05 | |||
Provision for deferred income taxes on adjustments 1 | 89 | 0.16 | 91 | 0.16 | |||
Subtotal of adjustments | ( | ( | ( | ( | |||
Core loss per share (non-GAAP) | ( | ( | |||||
Weighted average diluted shares (in millions) | 566.4 | 565.3 | |||||
1 The income tax impact is calculated using the U.S. corporate statutory tax rate. |
The Boeing Company and Subsidiaries
Reconciliation of Non-GAAP Measures
(Unaudited)
The tables provided below reconcile the non-GAAP financial measures core operating loss, core operating margin, and core loss per share with the most directly comparable GAAP financial measures, loss from operations, operating margin, and diluted loss per share. See page 6 of this release for additional information on the use of these non-GAAP financial measures.
(Dollars in millions, except per share data) | First Half 2020 | First Half 2019 | ||||||
$ millions | Per Share | $ millions | Per Share | |||||
Revenues | 28,715 | 38,668 | ||||||
Loss from operations (GAAP) | (4,317) | (1,030) | ||||||
Operating margin (GAAP) | (15.0)% | ( | ||||||
FAS/CAS service cost adjustment: | ||||||||
Pension FAS/CAS service cost adjustment | (513) | (549) | ||||||
Postretirement FAS/CAS service cost adjustment | (189) | (180) | ||||||
FAS/CAS service cost adjustment | (702) | (729) | ||||||
Core operating loss (non-GAAP) | ( | ( | ||||||
Core operating margin (non-GAAP) | (17.5)% | ( | ||||||
Diluted loss per share (GAAP) | ( | ( | ||||||
Pension FAS/CAS service cost adjustment | ( | (0.91) | ( | (0.97) | ||||
Postretirement FAS/CAS service cost adjustment | (189) | (0.33) | (180) | (0.32) | ||||
Non-operating pension expense | (171) | (0.30) | (187) | (0.32) | ||||
Non-operating postretirement expense | 27 | 0.05 | 53 | 0.09 | ||||
Provision for deferred income taxes on adjustments 1 | 178 | 0.31 | 181 | 0.32 | ||||
Subtotal of adjustments | ( | ( | ( | ( | ||||
Core loss per share (non-GAAP) | ( | ( | ||||||
Weighted average diluted shares (in millions) | 566.1 | 566.6 | ||||||
1 The income tax impact is calculated using the U.S. corporate statutory tax rate. |
View original content:http://www.prnewswire.com/news-releases/boeing-reports-second-quarter-results-301102051.html
SOURCE Boeing
