01—Abstract
Summary
Summary of the 10-K filed February 14, 2014. Cited figures are marked; the original filing is the authoritative source.
The Boeing Company's 2013 10-K filing reveals a strong year with total revenues reaching $86.6 billiona, a 6% increase from the prior year, driven primarily by robust performance in the Commercial Airplanes segment.
This segment saw a 8% revenue increase due to higher new airplane deliveries. The Defense, Space & Security (BDS) segment also experienced revenue growth, albeit at a slower pace. Net earnings rose to $4.6 billionb from $3.9 billion in 2012, indicating improved profitability.
The company's backlog remains substantial, standing at $422.7 billionc at year-end, providing a solid foundation for future growth. Significant investments in research and development, totaling $3.1 billion, underscore Boeing's commitment to innovation and future product development, particularly in new aircraft derivatives like the 737 MAX and 777X. Despite the positive financial performance, Boeing faces several risks.
These include intense competition in both commercial and defense markets, dependence on U.S. government defense spending which is subject to budget uncertainties and sequestration, and potential production challenges and cost overruns in new aircraft programs like the 787. The company also manages significant pension obligations and is subject to environmental regulations and potential litigation. Overall, the filing paints a picture of a financially sound company with strong market positions, but one that must navigate a complex and competitive global landscape with inherent operational and economic risks.
02—Key points
Key Highlights
- Total revenues for 2013 reached $86.6 billion, up 6% from 2012, driven by strong performance in Commercial Airplanes.
- Net earnings increased to $4.6 billion in 2013, up from $3.9 billion in 2012.
- Total contractual backlog stood at a robust $422.7 billion at the end of 2013.
- Research and development expenses were $3.1 billion in 2013, reflecting continued investment in innovation.
- The Commercial Airplanes segment reported increased deliveries and a higher operating margin of 10.9%.
- The Defense, Space & Security (BDS) segment saw revenue growth, though challenges exist due to U.S. defense spending uncertainties.
- Boeing continues to face intense competition in both commercial and defense sectors from global players.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2013, Boeing Co kept $0.05.
- Revenue$86.62B100.0%
- Cost of revenue−$73.27B84.6%
- Gross profit$13.36B15.4%
- Operating costs−$6.79B7.8%
- Operating income$6.56B7.6%
- Interest, other & tax−$1.98B2.3%
- Net income$4.58B5.3%
Where FY2013 revenue went
$86.62B- Cost of revenue: $73.27B, 85% of revenue
- Net income: $4.58B, 5.3% of revenue
- R&D: $3.07B, 3.5% of revenue
- Other operating costs: $3.72B, 4.3% of revenue
- Interest, other & tax: $1.98B, 2.3% of revenue
Kept 5.3% as net incomeNet income $4.58B · 5.3%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2013filed February 14, 2014Financial Statements
FY2013 against FY2012
| Line item | FY2013FY2012 | Change |
|---|---|---|
| Revenue | $86.62B$81.70B | +6.0% |
| Cost of Revenue | $73.27B$68.67B | +6.7% |
| Gross Profit | $13.36B$13.03B | +2.5% |
| R&D Expenses | $3.07B$3.30B | −6.9% |
| Operating Income | $6.56B$6.29B | +4.3% |
| Net Income | $4.58B$3.90B | +17.6% |
| EPS (Basic) | $6.03$5.15 | +17.1% |
| EPS (Diluted) | $5.96$5.11 | +16.6% |
| Shares Outstanding (Basic) | 760.80M758.00M | +0.4% |
| Shares Outstanding (Diluted) | 767.60M761.50M | +0.8% |
05—Questions
Frequently Asked Questions
What was Boeing's overall financial performance in 2013?
In 2013, Boeing reported total revenues of $86.6 billion, a 6% increase from 2012. Net earnings also rose to $4.6 billion from $3.9 billion in the previous year, indicating improved profitability. The company's backlog remained strong at $422.7 billion.
What are the key drivers of revenue growth for Boeing?
Boeing's revenue growth in 2013 was primarily driven by its Commercial Airplanes segment, which experienced higher new airplane deliveries, leading to an 8% increase in segment revenue. The Defense, Space & Security (BDS) segment also contributed to revenue growth, although at a slower pace.
What are the main risks and challenges highlighted in the filing?
Key risks include intense competition in both commercial and defense markets, dependence on U.S. government defense spending which faces budget uncertainties and potential sequestration, and operational challenges and potential cost overruns related to new aircraft programs such as the 787. Additionally, Boeing manages significant pension obligations and is subject to environmental regulations and potential litigation.
How did the 787 program perform in 2013?
The 787 program faced challenges in 2013, including battery-related incidents that led to a temporary suspension of deliveries. While deliveries resumed in the second quarter, the program continued to experience production challenges, change incorporation, schedule delays, and customer/supplier impacts, which created significant pressure on profitability. Boeing increased its accounting quantity for the 787 program and aimed to stabilize production rates at 10 per month.
06—Continue