Summary
Boeing Company's first quarter 2002 report shows a net loss of $1.25 billion, primarily due to a significant cumulative effect of an accounting change related to the adoption of SFAS No. 142 for goodwill and other intangible assets, resulting in a $1.83 billion charge. Excluding this one-time accounting impact, the company would have reported a net profit. Despite the reported net loss, operational revenues increased by 4% year-over-year to $13.8 billion, driven by growth in the Military Aircraft and Missile Systems segment and stable performance in Commercial Airplanes, though commercial aircraft deliveries were down. The company also recorded additional charges related to the September 11th terrorist attacks, impacting its net results. However, the company's backlog remains strong at $110.2 billion, indicating future revenue potential. Investors should note the impact of the SFAS No. 142 adoption and the ongoing assessment of September 11th related costs.
Key Highlights
- 1Reported a net loss of $1.25 billion for Q1 2002, heavily influenced by an $1.83 billion cumulative effect from adopting SFAS No. 142 (Goodwill and Other Intangible Assets).
- 2Revenue increased 4% to $13.8 billion, driven by a 22% rise in Military Aircraft and Missile Systems segment revenue.
- 3Commercial Airplanes segment revenue remained relatively stable at $8.3 billion, despite a decrease in aircraft deliveries, due to a favorable mix of aircraft sold.
- 4The company recorded an additional $34 million charge related to the September 11th terrorist attacks, impacting operating results.
- 5Contractual backlog of unfilled orders stood strong at $110.2 billion as of March 31, 2002, up from $106.6 billion at the end of 2001.
- 6Adopted SFAS No. 142, changing accounting for goodwill from amortization to an impairment-only approach, which resulted in a significant non-cash charge.