Summary
Boeing Company's (BA) 10-Q filing for the period ending June 30, 2011, reveals a mixed financial performance characterized by revenue growth primarily driven by the Commercial Airplanes segment, while the Defense, Space & Security (BDS) segment saw a slight decrease. Net earnings from continuing operations showed a healthy increase compared to the prior year's period, demonstrating improved profitability. However, the company is navigating significant challenges, including substantial investments in new aircraft programs like the 787 and 747-8, which are nearing critical delivery phases and are expected to have zero margin initially. Legal proceedings and contingent liabilities, particularly the long-standing A-12 litigation and the NLRB complaint regarding the South Carolina plant, represent ongoing risks that could materially impact future financial results. Investors should monitor the progress and cost management of these major aircraft programs, as well as the resolution of legal and regulatory matters.
Financial Highlights
52 data points| Revenue | $16.54B |
| Cost of Revenue | $13.20B |
| Gross Profit | $3.34B |
| R&D Expenses | $1.05B |
| Operating Income | $1.53B |
| Net Income | $941.00M |
| EPS (Basic) | $1.27 |
| EPS (Diluted) | $1.25 |
| Shares Outstanding (Basic) | 745.50M |
| Shares Outstanding (Diluted) | 752.60M |
Key Highlights
- 1Total revenues increased to $31.45 billion for the six months ended June 30, 2011, up from $30.79 billion in the prior year, driven by a 7% increase in Commercial Airplanes revenue.
- 2Net earnings from continuing operations saw a significant rise to $1.53 billion for the six months ended June 30, 2011, compared to $1.31 billion in the same period last year.
- 3Diluted earnings per share increased to $2.04 for the six months ended June 30, 2011, from $1.76 in the prior year.
- 4Inventories saw a substantial increase to $29.09 billion from $24.32 billion, largely due to work-in-process and deferred production costs for the 787 program.
- 5The company reported a significant increase in financing commitments to $14.25 billion from $9.87 billion, indicating potential future funding needs for customer financing.
- 6The 787 and 747-8 programs continue to face developmental challenges, with flight testing nearing completion and initial deliveries expected in the third quarter of 2011, though the company expects zero margin on initial deliveries.
- 7The company is involved in significant legal proceedings, including the ongoing A-12 litigation, which could potentially result in substantial pre-tax charges if the outcome is unfavorable.