01—Abstract
Summary
Summary of the 10-Q filed April 22, 2015. Cited figures are marked; the original filing is the authoritative source.
Boeing Company's Q1 2015 results showed a significant increase in revenue, primarily driven by the Commercial Airplanes segment, which saw a 21%a boost due to higher aircraft deliveries.
Despite this revenue growth, the company's net earnings saw a substantial increase to $1.34 billionb from $965 million in the prior year quarter, largely attributed to a decrease in unallocated pension and postretirement benefit expenses. The Defense, Space & Security segment, however, experienced a revenue decline of 12%. Key financial metrics indicate robust operational performance, with earnings from operations rising 30% year-over-year.
The company also continued its strong share repurchase program, demonstrating a commitment to returning capital to shareholders. While the Commercial Airplanes segment is experiencing growth, the company faces ongoing challenges in its Defense, Space & Security segment and manages significant backlog and potential risks related to fixed-price development contracts.
02—Key points
Key Highlights
- Total revenues increased by 8% to $22.15 billion in Q1 2015 compared to $20.47 billion in Q1 2014.
- Net earnings rose significantly by 38% to $1.34 billion ($1.87 per diluted share) in Q1 2015, up from $965 million ($1.28 per diluted share) in Q1 2014.
- Commercial Airplanes revenue surged by 21% to $15.38 billion, driven by increased aircraft deliveries.
- Defense, Space & Security revenue decreased by 12% to $6.71 billion due to lower revenues across all its sub-segments.
- Earnings from operations increased by 30% to $2.02 billion, benefiting from reduced unallocated pension and postretirement benefit expenses.
- The company repurchased $2.5 billion of its common stock during the quarter.
- Total contractual backlog stood at $482.57 billion as of March 31, 2015.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2015, Boeing Co kept $0.06.
- Revenue$22.15B100.0%
- Cost of revenue−$18.50B83.5%
- Gross profit$3.65B16.5%
- Operating costs−$1.63B7.4%
- Operating income$2.02B9.1%
- Interest, other & tax−$683.0M3.1%
- Net income$1.34B6.0%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2015filed April 22, 2015Financial Statements
Q1 FY2015 against Q1 FY2014
| Line item | Q1 FY2015Q1 FY2014 | Change |
|---|---|---|
| Revenue | $22.15B$20.46B | +8.2% |
| Cost of Revenue | $18.50B$17.30B | +6.9% |
| Gross Profit | $3.65B$3.17B | +15.3% |
| R&D Expenses | $769.00M$809.00M | −4.9% |
| Operating Income | $2.02B$1.54B | +30.9% |
| Net Income | $1.34B$965.00M | +38.4% |
| EPS (Basic) | $1.89$1.30 | +45.4% |
| EPS (Diluted) | $1.87$1.28 | +46.1% |
| Shares Outstanding (Basic) | 705.70M745.00M | −5.3% |
| Shares Outstanding (Diluted) | 713.10M752.50M | −5.2% |
05—Questions
Frequently Asked Questions
What is the primary driver behind Boeing's revenue growth in Q1 2015?
The primary driver of Boeing's revenue growth in Q1 2015 was the Commercial Airplanes segment, which experienced a 21% increase in revenue. This growth was primarily attributed to a higher number of aircraft deliveries during the quarter.
How did the Defense, Space & Security segment perform in Q1 2015?
The Defense, Space & Security (BDS) segment saw a revenue decrease of 12% in Q1 2015 compared to the same period in 2014. This decline was observed across all three of its sub-segments: Boeing Military Aircraft, Network & Space Systems, and Global Services & Support.
What is the significance of the reduction in unallocated pension and postretirement benefit expenses?
The reduction in unallocated pension and postretirement benefit expenses significantly boosted Boeing's net earnings and earnings from operations. A substantial portion of this reduction was due to pension curtailment charges recorded in the prior year quarter, leading to a favorable year-over-year comparison.
What is the status of Boeing's backlog?
Boeing maintained a substantial total contractual backlog of $482.57 billion as of March 31, 2015. While this represents a slight decrease from the end of 2014, it signifies a large pipeline of future revenues and ongoing business.
06—Continue