Summary
Boeing Co. reported its financial results for the fourth quarter and full year ended December 31, 2002. For the full year, the company reported net earnings of $492 million, or $0.61 per share, on revenues of $54.1 billion. This includes a significant $1.8 billion non-cash charge related to goodwill accounting changes. The company's operating margin for 2002 was 7.2%. Despite a decline in commercial airplane deliveries and higher financing and production costs impacting commercial airplane segment earnings, the company saw strength in its Integrated Defense Systems segment, with revenues increasing and earnings remaining stable year-over-year. Boeing's cash position improved significantly, ending the year at $2.3 billion, up from $0.6 billion in the prior year. However, consolidated debt also increased to $14.4 billion, driven by higher debt at Boeing Capital Corporation.
Key Highlights
- 1Full-year 2002 net earnings were $492 million ($0.61/share) on revenues of $54.1 billion.
- 2A substantial $1.8 billion non-cash charge for goodwill accounting impacted full-year earnings.
- 3Operating earnings for 2002 were $3.87 billion, with an operating margin of 7.2%, slightly up from 6.7% in 2001.
- 4Commercial Airplanes saw a 28% decrease in deliveries and a 19% decrease in revenue in 2002, though operating earnings on a program accounting basis remained strong.
- 5Integrated Defense Systems (combining Military Aircraft and Missile Systems, and Space and Communications) saw revenue growth of 9.4% to $25.0 billion in 2002.
- 6Cash and short-term investments significantly increased to $2.3 billion at year-end 2002, up from $0.6 billion at year-end 2001.
- 7Consolidated debt rose to $14.4 billion at year-end 2002, primarily due to an increase in debt at Boeing Capital Corporation.