Summary
Boeing reported strong revenue growth in 2012, driven by a significant increase in commercial airplane deliveries. The Commercial Airplanes segment saw revenues jump by 36% compared to the previous year, bolstered by higher deliveries across all programs, including the introduction of the 787-8 and 747-8 Freighter. Defense, Space & Security (BDS) revenues also saw a modest increase, with growth in the Boeing Military Aircraft (BMA) and Global Services & Support (GS&S) segments partially offsetting a decline in Network & Space Systems (N&SS). Despite the revenue surge, the company faced increased costs and pressures impacting operating margins, particularly from the ramp-up of new aircraft programs like the 787 and 747-8. Research and development expenses decreased year-over-year due to lower spending on these programs. The company's strong backlog, totaling over $372 billion, provides a solid foundation for future growth, although significant risks remain related to production schedules, supplier performance, and potential impacts from U.S. government defense spending.
Financial Highlights
54 data points| Revenue | $81.70B |
| Cost of Revenue | $68.67B |
| Gross Profit | $13.03B |
| R&D Expenses | $3.30B |
| Operating Income | $6.29B |
| Net Income | $3.90B |
| EPS (Basic) | $5.15 |
| EPS (Diluted) | $5.11 |
| Shares Outstanding (Basic) | 758.00M |
| Shares Outstanding (Diluted) | 761.50M |
Key Highlights
- 1Total revenues increased by 19% to $81.7 billion in 2012, primarily driven by a 36% surge in Commercial Airplanes revenue to $49.1 billion.
- 2Defense, Space & Security (BDS) revenues saw a modest 2% increase to $32.6 billion, with growth in BMA and GS&S offsetting a decline in N&SS.
- 3Operating earnings increased by 8% to $6.3 billion, with Commercial Airplanes reporting a significant 35% rise in earnings due to higher deliveries and lower R&D.
- 4The company's total contractual backlog remained robust, growing to $372.3 billion by year-end 2012, indicating strong future demand.
- 5Research and development expenses decreased by 16% to $3.3 billion, largely due to reduced spending on the 747-8 and 787-8 programs.
- 6Boeing highlighted significant risks associated with production rate ramp-ups, supplier performance, and potential impacts of U.S. defense budget sequestration.
- 7The company experienced battery issues with its 787 aircraft early in 2013, leading to a suspension of deliveries and an ongoing investigation by regulatory agencies.