Summary
Boeing's 2014 10-K filing highlights a strong year for the company, with significant revenue growth driven primarily by its Commercial Airplanes segment, which saw increased deliveries of new aircraft. The Defense, Space & Security (BDS) segment experienced a revenue decline, largely due to lower revenues across its sub-segments. The company's overall strategy focuses on execution in these core businesses, supported by Boeing Capital, with an aim to deliver value to shareholders through innovation and efficiency improvements. Financially, Boeing demonstrated solid performance with increased earnings from operations and net earnings compared to the prior year. The company also saw a substantial increase in its contractual backlog, particularly in Commercial Airplanes, indicating robust future demand. Significant investments in research and development for new aircraft programs, such as the 777X and 737 MAX, underscore Boeing's commitment to future growth. Key risks identified include market cyclicality, dependency on government defense spending, potential cost overruns on fixed-price contracts, and global economic uncertainties impacting airline demand.
Financial Highlights
55 data points| Revenue | $90.76B |
| Cost of Revenue | $76.75B |
| Gross Profit | $14.01B |
| R&D Expenses | $3.05B |
| Operating Income | $7.47B |
| Net Income | $5.45B |
| EPS (Basic) | $7.47 |
| EPS (Diluted) | $7.38 |
| Shares Outstanding (Basic) | 728.90M |
| Shares Outstanding (Diluted) | 736.70M |
Key Highlights
- 1The Commercial Airplanes segment revenue increased by 13% to $59.99 billion in 2014, driven by higher new airplane deliveries, while the Defense, Space & Security segment revenue decreased by 7% to $30.88 billion.
- 2Total revenues for Boeing increased by 5% to $90.76 billion in 2014, with net earnings rising to $5.45 billion, up from $4.59 billion in 2013.
- 3Boeing's total contractual backlog grew by 15% to $487.09 billion at the end of 2014, primarily driven by a strong order book for commercial aircraft.
- 4The company recorded a reach-forward loss of $425 million on the USAF KC-46A Tanker contract in the second quarter of 2014 due to initial engineering and design issues.
- 5Research and development expenses remained substantial at $3.05 billion, with continued investment in new aircraft derivatives like the 777X, 787-10, and 737 MAX.
- 6Boeing repurchased approximately 46.6 million shares of its common stock for $6.0 billion in 2014, and announced a new repurchase plan of up to $12 billion.
- 7The company's financial statements reveal significant pension and postretirement benefit obligations, with an underfunded status of $17.3 billion for pension plans under GAAP as of December 31, 2014.