01—Abstract
Summary
Summary of the 10-K filed February 8, 2010. Cited figures are marked; the original filing is the authoritative source.
Boeing's 2009 Form 10-K reveals a company navigating a dynamic aerospace landscape.
The report details operations across its Commercial Airplanes and Integrated Defense Systems segments, highlighting the ongoing development and delivery of key aircraft programs. Investors should note the company's focus on managing program execution, cost control, and technological innovation as primary drivers of future performance and profitability in a competitive global market. Financial performance in 2009 reflects the cyclical nature of the aerospace industry, influenced by commercial aircraft order backlogs and defense spending priorities.
Boeing emphasizes its strong position in both civil and military aviation, supported by a substantial order book. The company's ability to effectively manage its extensive supply chain, technological risks, and regulatory environment will be crucial for sustained shareholder value.
02—Key points
Key Highlights
- Boeing operates through two main segments: Commercial Airplanes and Integrated Defense Systems, with significant revenue generated from both.
- The company reported a substantial backlog of commercial aircraft orders, indicating future revenue potential.
- Risk factors include the lengthy and complex development cycles of aircraft, potential program delays, and technological uncertainties.
- Financial performance is subject to global economic conditions, airline profitability, and defense budget allocations.
- The report details efforts in managing operational costs, supply chain complexities, and research and development for new technologies.
- Boeing's legal proceedings and regulatory compliance are significant considerations for operational continuity and financial impact.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2009, Boeing Co kept $0.02.
- Revenue$68.28B100.0%
- Cost of revenue−$56.54B82.8%
- Gross profit$11.74B17.2%
- Operating costs−$9.64B14.1%
- Operating income$2.10B3.1%
- Interest, other & tax−$784.0M1.1%
- Net income$1.31B1.9%
Where FY2009 revenue went
$68.28B- Cost of revenue: $56.54B, 83% of revenue
- Net income: $1.31B, 1.9% of revenue
- R&D: $6.51B, 9.5% of revenue
- Other operating costs: $3.14B, 4.6% of revenue
- Interest, other & tax: $784.0M, 1.1% of revenue
Kept 1.9% as net incomeNet income $1.31B · 1.9%Interest, other & tax $784.0M · 1.1%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2009filed February 8, 2010Financial Statements
FY2009 against FY2008
| Line item | FY2009FY2008 | Change |
|---|---|---|
| Revenue | $68.28B$60.91B | +12.1% |
| Cost of Revenue | $56.54B$50.35B | +12.3% |
| Gross Profit | $11.74B$10.56B | +11.2% |
| R&D Expenses | $6.51B$3.77B | +72.7% |
| Operating Income | $2.10B$3.95B | −46.9% |
| Net Income | $1.31B$2.67B | −50.9% |
| EPS (Basic) | $1.86$3.70 | −49.7% |
| EPS (Diluted) | $1.84$3.67 | −49.9% |
| Shares Outstanding (Basic) | 709.60M722.80M | −1.8% |
| Shares Outstanding (Diluted) | 713.40M729.00M | −2.1% |
05—Questions
Frequently Asked Questions
What were Boeing's primary business segments in 2009?
Boeing's primary business segments were Commercial Airplanes, which designs, manufactures, and markets jet airliners, and Integrated Defense Systems, which provides network-centric solutions and services for defense, intelligence, and homeland security customers.
What are the major risks Boeing faced as outlined in the filing?
Key risks highlighted include the inherent complexities and long lead times in aerospace product development, potential production disruptions, reliance on a global supply chain, fluctuations in defense spending, and the impact of global economic conditions on commercial aircraft demand.
How did the company discuss its financial condition and results of operations?
Management's Discussion and Analysis (MD&A) section provides insights into revenues, costs, profitability, and liquidity, likely discussing the performance of each segment, the impact of new programs, and the company's strategies for managing financial resources and debt.
What is the significance of the 'order backlog' mentioned for Commercial Airplanes?
The order backlog for Commercial Airplanes represents the value of firm orders for aircraft that have not yet been delivered. A strong backlog is a key indicator of future revenue and provides a degree of visibility into the company's business performance over the medium to long term.
06—Continue