Summary
Boeing Co. reported first-quarter 2013 results showing a slight decrease in total revenues to $18.89 billion from $19.38 billion in the prior year, primarily driven by a decline in Commercial Airplanes revenue. This was influenced by the suspension of 787 Dreamliner deliveries due to battery issues and lower commercial aviation services. Defense, Space & Security (BDS) revenues also saw a slight dip. Despite the revenue dip, net earnings increased to $1.11 billion from $923 million in Q1 2012, and diluted earnings per share rose to $1.44 from $1.22. This improvement was largely attributed to a lower effective income tax rate, significantly benefiting from the retroactive reinstatement of the U.S. research and development tax credit. Core operating earnings, a non-GAAP measure excluding certain pension and postretirement costs, also showed an increase, reflecting strong performance in Commercial Airplanes and BDS segments. However, the company faces ongoing challenges, including the costly investigation and modification of the 787 battery system, potential impacts from U.S. government sequestration on defense spending, and continued pressures on the 747 program due to market conditions. The company's liquidity remains robust with significant borrowing capacity and a substantial backlog.
Financial Highlights
52 data points| Revenue | $18.89B |
| Cost of Revenue | $15.76B |
| Gross Profit | $3.14B |
| R&D Expenses | $705.00M |
| Operating Income | $1.53B |
| Net Income | $1.11B |
| EPS (Basic) | $1.45 |
| EPS (Diluted) | $1.44 |
| Shares Outstanding (Basic) | 763.30M |
| Shares Outstanding (Diluted) | 766.60M |
Key Highlights
- 1Total revenues decreased by 3% to $18.89 billion compared to $19.38 billion in Q1 2012, primarily due to a 2% decrease in Commercial Airplanes revenue.
- 2Net earnings increased by 20% to $1.11 billion from $923 million in the prior year, driven by a lower effective tax rate, notably due to the R&D tax credit.
- 3Diluted earnings per share (EPS) rose to $1.44 from $1.22 in Q1 2012.
- 4Core operating earnings (a non-GAAP measure) increased to $1.87 billion from $1.77 billion, reflecting operational improvements in key segments.
- 5The 787 Dreamliner program faced delivery suspensions due to battery incidents, leading to related investigation and modification costs, impacting Commercial Airplanes revenue.
- 6The company highlighted the impact of U.S. government sequestration on defense spending, creating uncertainty for the Defense, Space & Security segment.
- 7Boeing maintained a strong contractual backlog of $373.6 billion as of March 31, 2013.