Boeing Reports Fourth-Quarter 2010 Results and 2011 Guidance

CHICAGO, Jan. 26, 2011 /PRNewswire-FirstCall/ --

Fourth-Quarter 2010

• Earnings per share of $1.56, including favorable tax settlement, on revenue of $16.6 billion
• Operating cash flow of $1.1 billion reflects strong operating performance

Full Year 2010

• Earnings per share of $4.45 on revenue of $64.3 billion
• Operating cash flow of $3.0 billion and cash and marketable securities of $10.5 billion provide strong liquidity
• Backlog grew to $321 billion including $69 billion of new orders during the year

Outlook

• 2011 EPS guidance of between $3.80 and $4.00 reflects solid core performance, higher pension expense and the recently revised 787 schedule

Table 1.  Summary Financial Results
	Fourth Quarter			Full Year
(Dollars in Millions, except per share data)	2010	2009	Change	2010	2009	Change
Revenues	$16,550	$17,937	(8%)	$64,306	$68,281	(6%)
Earnings From Operations	$1,103	$1,693	(35%)	$4,971	$2,096	137%
Operating Margin	6.7%	9.4%	(2.7)Pts	7.7%	3.1%	4.6 Pts
Net Income	$1,164	$1,268	(8%)	$3,307	$1,312	152%
Earnings per Share	$1.56	$1.75	(11%)	$4.45	$1.84	142%
Operating Cash Flow	$1,116	$3,212	(65%)	$2,952	$5,603	(47%)

The Boeing Company (NYSE: BA) reported fourth-quarter net income of $1.2 billion, or $1.56 per share, on revenue of $16.6 billion.  The results reflect solid performance across the company's core programs, a favorable tax settlement (+$0.50 per share), and a special one-time contribution to Boeing's charitable trust (-$0.05 per share) (Table 1).  

Net income for the full year was $3.3 billion, or $4.45 per share, on revenue of $64.3 billion, which included the $0.45 per share net impact of the favorable tax settlement and the charitable trust contribution.  First-quarter 2010 included a $0.20 per share tax charge on health care legislation.  Earnings per share for 2009 of $1.84 included a combined $3.58 per share impact due to the 787 R&D reclassification and 747 charges.

Earnings guidance for 2011 has been established at between $3.80 and $4.00 per share reflecting solid core performance, higher pension expense, the revised 787 schedule and the current defense contracting environment.

"Boeing delivered strong operating performance and exceptional cash generation from core production and services businesses in 2010, which helped mitigate the impact of development program challenges," said Jim McNerney, Boeing chairman, president and chief executive officer.  "We're entering 2011 well-positioned for growth, with a large order book, increasing global demand for commercial airplanes, greater clarity around our domestic defense outlook, and significant international defense sales opportunities.  Our focus for the year is to deliver the 787 and 747-8; manage disciplined increases in commercial airplane production rates and drive improved competitiveness and financial performance throughout the business."

Boeing's quarterly operating cash flow was $1.1 billion, reflecting strong operating performance while continuing to invest in development programs.  For the full year, operating cash flow was $3.0 billion.  Free cash flow* was $0.7 billion in the quarter and $1.8 billion for the year (Table 2).

Table 2.  Cash Flow
	Fourth Quarter		Full Year
(Millions)	2010	2009	2010	2009
Operating Cash Flow	$1,116	$3,212	$2,952	$5,603
Less Additions to Property, Plant & Equipment	($400)	($221)	($1,125)	($1,186)
Free Cash Flow*	$716	$2,991	$1,827	$4,417
* Non-GAAP measure.  A complete definition and reconciliation of Boeing's use of non-GAAP measures, identified by an asterisk (*), is found on page 8, "Non-GAAP Measure Disclosure."

Cash and investments in marketable securities totaled $10.5 billion at year-end (Table 3), up 5 percent in the quarter.  Debt was essentially unchanged in the quarter, and the company did not acquire any of its shares.

Table 3.  Cash, Marketable Securities and Debt Balances
	Quarter-End
(Billions)	4Q10	3Q10
Cash	$5.4	$2.9
Marketable Securities(1)	$5.1	$7.1
Total	$10.5	$10.0
Debt Balances:
The Boeing Company	$9.0	$8.9
Boeing Capital Corporation	$3.4	$3.5
Total Consolidated Debt	$12.4	$12.4
1 Marketable securities consists primarily of time deposits due within one year classified as "short-term investments."

Total company backlog at year-end was $321 billion, unchanged from the prior quarter and up 2 percent from the prior year.

Segment Results  

Commercial Airplanes

Boeing Commercial Airplanes fourth-quarter revenue decreased by 11 percent to $8.2 billion on lower expected 777 and 747 airplane deliveries.  Operating margin was 7.7 percent, reflecting the lower deliveries and higher R&D and other period costs (Table 4).  

For the full year, revenue decreased by 7 percent to $31.8 billion on the lower expected 777 and 747 airplane deliveries.  Commercial Airplanes operating earnings were $3.0 billion on higher planned R&D spending.  The prior-year results were impacted by the reclassification of 787 R&D costs of $2.7 billion and 747 charges totaling $1.4 billion.

Commercial Airplanes booked 180 gross orders during the quarter while 22 orders were removed from its order book.  This contrasts with the year-ago period when net orders were 62 airplanes.  For the full year, net orders were 530 airplanes.  Contractual backlog remains strong with 3,443 airplanes valued at $256 billion.  

Table 4. Commercial Airplanes Operating Results
	Fourth Quarter			Full Year
(Dollars in Millions)	2010	2009	Change	2010	2009	Change
Commercial Airplanes Deliveries	116	122	(5%)	462	481	(4%)
Revenues	$8,184	$9,183	(11%)	$31,834	$34,051	(7%)
Earnings/(Loss) from Operations	$627	$1,020	(39%)	$3,006	($583)	NA
Operating Margins	7.7%	11.1%	(3.4)Pts	9.4%	(1.7%)	NA

The 787 program experienced an in-flight electrical incident on a test flight in November.   As disclosed last week, first delivery is now expected in the third quarter of 2011 and includes the time required to produce, install and test updated software and new electrical power distribution panels in the flight test and production airplanes.  Total firm orders for the 787 at year-end were 847 airplanes from 57 customers.  

Flight testing of the 747-8 Freighter progressed during the quarter, and the first two Intercontinental passenger models had electrical power successfully turned on.  Delivery of the first 747-8 Freighter is planned for mid-2011.

Boeing Defense, Space & Security

Boeing Defense, Space & Security's fourth-quarter revenue declined 4 percent to $8.2 billion on lower revenue in Boeing Military Aircraft (BMA) and Global Services & Support (GS&S).  Operating margin was 10.0 percent reflecting improved margins in Network & Space Systems (N&SS) (Table 5).

For the full year, revenue decreased by 5 percent to $31.9 billion on expected lower volume in N&SS.  Operating earnings decreased by $0.4 billion to $2.9 billion, producing operating margins of 9.0 percent on lower margins in BMA.

Table 5.  Defense, Space & Security Operating Results
	Fourth Quarter			Full Year
(Dollars in Millions)	2010	2009	Change	2010	2009	Change
Revenues
Boeing Military Aircraft	$3,627	$3,805	(5%)	$14,238	$14,304	(0%)
Network & Space Systems	$2,434	$2,385	2%	$9,455	$10,877	(13%)
Global Services & Support	$2,104	$2,357	(11%)	$8,250	$8,480	(3%)
Total BDS Revenues	$8,165	$8,547	(4%)	$31,943	$33,661	(5%)
Earnings from Operations
Boeing Military Aircraft	$323	$363	(11%)	$1,258	$1,528	(18%)
Network & Space Systems	$218	$141	55%	$711	$839	(15%)
Global Services & Support	$275	$325	(15%)	$906	$932	(3%)
Total BDS Earnings from Operations	$816	$829	(2%)	$2,875	$3,299	(13%)
Operating Margins	10.0%	9.7%	0.3 Pts	9.0%	9.8%	(0.8)Pts

BMA fourth-quarter revenue decreased by $0.2 billion to $3.6 billion, due to fewer deliveries and less favorable mix.  Operating margin was 8.9 percent, reflecting strong execution across its programs, offset by higher costs on the Airborne Early Warning & Control program, which reduced BMA margins by 3.8 points.  During the quarter, BMA delivered 29 aircraft, and the U.S. Naval Air Systems Command awarded it an A160T Hummingbird unmanned vehicle contract.

N&SS fourth-quarter revenue was essentially unchanged at $2.4 billion.  Operating margin grew to 9.0 percent on improved performance in Space and Intelligence Systems.  During the quarter, the Mexican government signed a contract for three geomobile satellites and the X-37B Orbital Test Vehicle completed its first flight.

GS&S revenue decreased by $0.3 billion to $2.1 billion in the quarter due to lower volume in maintenance, modifications and upgrades and integrated logistics.  Operating margin was 13.1 percent, driven by strong performance across its portfolio.  During the quarter, the company was awarded a contract for the development of the Future Logistic Information Services from the U.K. Ministry of Defense and a contract for KC-135 Fleet Support from the U.S. Air Force.

Backlog at Defense, Space & Security is $65.2 billion, approximately two times the unit's expected 2011 revenue.  Backlog increased slightly as compared to 2009.

Boeing Capital Corporation  

Boeing Capital Corporation (BCC) reported fourth-quarter pre-tax earnings of $6 million compared to $14 million in the same period last year (Table 6).  For the full year, pre-tax earnings were $152 million, up from $126 million last year.  During the quarter, BCC's portfolio balance declined to $4.7 billion, down from $5.7 billion at the beginning of the year and $5.0 billion at the end of third quarter, on run-off, pre-payments and asset sales.  BCC's debt-to-equity ratio was unchanged at 5.0-to-1.

Table 6.  Boeing Capital Corporation Operating Results
	Fourth Quarter			Full Year
(Dollars in Millions)	2010	2009	Change	2010	2009	Change
Revenues	$145	$164	(12%)	$639	$660	(3%)
Earnings from Operations	$6	$14	(57%)	$152	$126	21%

Additional Information

The "Other" segment consists primarily of Boeing Engineering, Operations and Technology, as well as certain results related to the financial consolidation of all business units.  Other segment expense was $73 million in the fourth quarter, up from $47 million in the same period last year.

Total pension expense for the fourth quarter was $254 million, as compared to $223 million in the same period last year.  A total of $244 million was recognized in the operating segments in the quarter (down from $264 million in the same period last year), and $10 million was recognized in unallocated items.

Unallocated expense was $273 million, up from the $123 million reported in the same period last year, driven by a $55 million charitable trust contribution and higher unallocated pension expense.  The company's pension plans were 83 percent funded at year end (5.3 percent discount rate and 12.7 percent actual asset return).

Other income for the quarter was $32 million, as compared to an expense of $33 million in the same period last year.  Interest expense for the quarter was $132 million, up from $110 million in the same period last year.  

The company's income tax benefit of $163 million in the quarter (compared to an expense of $267 million in the same period last year) included a $371 million non-cash gain due to an IRS settlement for 1998 through 2003 tax years and a benefit of $154 million due to the extension of the R&D credit for the 2010 tax year that was signed into law in December.

Outlook

The company's 2011 financial guidance (Table 7) reflects solid core operating performance, higher pension expense, the recently revised 787 schedule and the current defense contracting environment.

Boeing's 2011 revenue guidance is between $68 and $71 billion and reflects the initial 787 and 747-8 deliveries.  Earnings guidance for 2011 is established at between $3.80 and $4.00 per share.  Total pension expense in 2011 is expected to be $1.8 billion or $1.58 per share, an increase of $0.58 per share from 2010.  Operating cash flow is expected to be greater than $2.5 billion in 2011, including $0.5 billion of discretionary pension contributions.  

Commercial Airplanes' 2011 deliveries guidance is expected to be between 485 and 500 airplanes and is sold out.  It includes the first 787 and 747-8 deliveries (combined 25 to 40 units), which are expected to begin in the third quarter of 2011 and mid-2011, respectively.  Commercial Airplanes' 2011 revenue is expected to be between $36 and $38 billion with operating margins between 7.5 and 8.5 percent.  

Defense, Space & Security's revenue for 2011 is expected to be between $31.5 and $33 billion with operating margins between 8.5 and 9 percent.  

Boeing Capital Corporation expects that its aircraft finance portfolio will continue to reduce in 2011, as new aircraft financing of less than $0.5 billion is expected to be lower than normal portfolio runoff through customer payments and depreciation.

Boeing's 2011 R&D forecast is between $3.7 and $3.9 billion.  Capital expenditures for 2011 are expected to be approximately $2.3 billion.  

Table 7.  Financial Outlook (Dollars in Billions, except per-share data)	2011
The Boeing Company
Revenue	$68 - 71
Earnings Per Share (GAAP)	$3.80 - 4.00
Operating Cash Flow (1)	> $2.5
Boeing Commercial Airplanes
Deliveries	485 - 500
Revenue	$36 - 38
Operating Margin	7.5% - 8.5%
Boeing Defense, Space & Security
Revenue
Boeing Military Aircraft	$14.2 - 14.7
Network & Space Systems	$9 - 9.5
Global Services & Support	$8.3 - 8.8
Total BDS Revenue	$31.5 - 33
Operating Margin
Boeing Military Aircraft	~ 9%
Network & Space Systems	~ 7%
Global Services & Support	~ 10.5%
Total BDS Operating Margin	8.5% - 9%
Boeing Capital Corporation
Portfolio Size	Lower
Revenue	~ $0.5
Return on Assets	> 1%
Research & Development	$3.7 - 3.9
Capital Expenditures	~ $2.3
1 After cash pension contributions of $0.5 billion and assuming new aircraft financings under $0.5 billion.

Non-GAAP Measure Disclosure

Management believes that the non-GAAP (Generally Accepted Accounting Principles) measures (indicated by an asterisk *) used in this report provide investors with important perspectives into the company's ongoing business performance.  The company does not intend for the information to be considered in isolation or as a substitute for the related GAAP measures.  Other companies may define the measures differently.  The following definitions are provided:

Free Cash Flow

Free cash flow is defined as GAAP operating cash flow less capital expenditures for property, plant and equipment additions.  Management believes free cash flow provides investors with an important perspective on the cash available for shareholders, debt repayment, and acquisitions after making the capital investments required to support ongoing business operations and long term value creation.  Free cash flow does not represent the residual cash flow available for discretionary expenditures as it excludes certain mandatory expenditures such as repayment of maturing debt. Management uses free cash flow internally to assess both business performance and overall liquidity.  Table 2 provides a reconciliation between GAAP operating cash flow and free cash flow.

Forward-Looking Statements
This document contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.  Words such as "may," "will," "should," "expects," "intends," "projects," "plans," "believes," "estimates," "targets," "anticipates," and similar expressions are used to identify these forward-looking statements.  Examples of forward-looking statements include, but are not limited to, statements we make regarding our guidance relating to 2011 financial and operating performance, as well as any other statement that does not directly relate to any historical or current fact.  Forward-looking statements are based on our current expectations and assumptions, which may not prove to be accurate.  These statements are not guarantees and are subject to risks, uncertainties, and changes in circumstances that are difficult to predict. Many factors could cause actual results to differ materially and adversely from these forward-looking statements.  Among these factors are risks related to: (1) general conditions in the economy and our industry, including those due to regulatory changes; (2) our reliance on our commercial customers, our suppliers and the worldwide market; (3) our commercial development programs, including the 787 and 747-8 commercial aircraft programs; (4) changing acquisition priorities of the U.S. government; (5) our dependence on U.S. government contracts; (6) our reliance on fixed-price contracts; (7) our reliance on cost-type contracts; (8) uncertainties concerning contracts that include in-orbit incentive payments; (9) changes in accounting estimates; (10) our ability to develop new technologies; (11) significant changes in discount rates and actual investment return on pension assets; (12) our ability to attract, retain and develop qualified personnel; (13) work stoppages or other labor disruptions; (14) changes in the competitive landscape in our markets; (15) our non-U.S. operations, including sales to non-U.S. customers; (16) potential adverse developments in new or pending litigation and/or government investigations; (17) customer and aircraft concentration in Boeing Capital Corporation's customer financing portfolio; (18) changes in our ability to obtain debt on commercially reasonable terms and at competitive rates in order to fund our operations and contractual commitments; (19) realizing the anticipated benefits of mergers, acquisitions, joint ventures/strategic alliances or divestitures; (20) the adequacy of our insurance coverage to cover significant risk exposures; (21) potential business disruptions related to physical security threats, information technology attacks or natural disasters; and (22) potential environmental liabilities.
Additional information concerning these and other factors can be found in our filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.  Any forward-looking statement speaks only as of the date on which it is made, and we assume no obligation to update any forward-looking statement, except as required by law.

Contact:

Investor Relations:  Scott Fitterer or Jennifer Mack (312) 544-2140

Communications:  Chaz Bickers (312) 544-2002

The Boeing Company and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
	Twelve months ended		Three months ended
	December 31		December 31
(Dollars in millions, except per share data)	2010	2009	2010	2009
Sales of products	$52,586	$57,032	$13,569	$14,934
Sales of services	11,720	11,249	2,981	3,003
Total revenues	64,306	68,281	16,550	17,937
Cost of products	(42,194)	(47,639)	(11,025)	(12,207)
Cost of services	(9,489)	(8,726)	(2,352)	(2,258)
Boeing Capital Corporation interest expense	(160)	(175)	(36)	(43)
Total costs and expenses	(51,843)	(56,540)	(13,413)	(14,508)
	12,463	11,741	3,137	3,429
Income from operating investments, net	267	249	80	63
General and administrative expense	(3,644)	(3,364)	(977)	(780)
Research and development expense, net	(4,121)	(6,506)	(1,134)	(1,002)
Gain/(loss) on dispositions, net	6	(24)	(3)	(17)
Earnings from operations	4,971	2,096	1,103	1,693
Other income/(expense), net	52	(26)	32	(33)
Interest and debt expense	(516)	(339)	(132)	(110)
Earnings before income taxes	4,507	1,731	1,003	1,550
Income tax (expense)/benefit	(1,196)	(396)	163	(267)
Net earnings from continuing operations	3,311	1,335	1,166	1,283
Net loss on disposal of discontinued operations, net of taxes of
$2, $13, $1 and $8	(4)	(23)	(2)	(15)
Net earnings	$3,307	$1,312	$1,164	$1,268
Basic earnings per share from continuing operations	$4.50	$1.89	$1.57	$1.79
Net loss on disposal of discontinued operations, net of taxes	(0.01)	(0.03)		(0.02)
Basic earnings per share	$4.49	$1.86	$1.57	$1.77
Diluted earnings per share from continuing operations	$4.46	$1.87	$1.56	$1.77
Net loss on disposal of discontinued operations, net of taxes	(0.01)	(0.03)		(0.02)
Diluted earnings per share	$4.45	$1.84	$1.56	$1.75
Cash dividends paid per share	$1.68	$1.68	$0.42	$0.42
Weighted average diluted shares (millions)	744.3	713.4	747.0	723.9

The Boeing Company and Subsidiaries
Consolidated Statements of Financial Position
(Unaudited)
	December 31	December 31
(Dollars in millions, except per share data)	2010	2009
Assets
Cash and cash equivalents	$  5,359	$  9,215
Short-term and other investments	5,158	2,008
Accounts receivable, net	5,422	5,785
Current portion of customer financing, net	285	368
Deferred income taxes	31	966
Inventories, net of advances and progress billings	24,317	16,933
Total current assets	40,572	35,275
Customer financing, net	4,395	5,466
Property, plant and equipment, net of accumulated depreciation of     $13,322 and $12,795	8,931	8,784
Goodwill	4,937	4,319
Other acquired intangibles, net	2,979	2,877
Deferred income taxes	4,031	3,062
Investments	1,111	1,030
Pension plan assets, net	6	16
Other assets, net of accumulated amortization of $630 and $492	1,603	1,224
Total assets	$ 68,565	$ 62,053
Liabilities and equity
Accounts payable	$ 7,715	$ 7,096
Other accrued liabilities	13,802	12,822
Advances and billings in excess of related costs	12,323	12,076
Deferred income taxes and income taxes payable	607	182
Short-term debt and current portion of long-term debt	948	707
Total current liabilities	35,395	32,883
Accrued retiree health care	8,025	7,049
Accrued pension plan liability, net	9,800	6,315
Non-current income taxes payable	418	827
Other long-term liabilities	592	537
Long-term debt	11,473	12,217
Shareholders' equity:
Common stock, par value $5.00 – 1,200,000,000 shares authorized;        1,012,261,159 shares issued	5,061	5,061
Additional paid-in capital	3,866	3,724
Treasury stock, at cost – 277,002,059 and 256,406,709 shares	(17,187)	(15,911)
Retained earnings	24,784	22,746
Accumulated other comprehensive loss	(13,758)	(11,877)
ShareValue Trust – 0 and 29,563,324 shares		(1,615)
Total shareholders' equity	2,766	2,128
Noncontrolling interest	96	97
Total equity	2,862	2,225
Total liabilities and equity	$ 68,565	$62,053

The Boeing Company and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
	Twelve months ended
	December 31
(Dollars in millions)	2010	2009
Cash flows - operating activities:
Net earnings	$ 3,307	$ 1,312
Adjustments to reconcile net earnings to net cash provided by operating activities:
Non-cash items –
Share-based plans expense	215	238
Depreciation	1,510	1,459
Amortization of other acquired intangibles	217	207
Amortization of debt discount/premium and issuance costs	19	12
Investment/asset impairment charges, net	174	151
Customer financing valuation provision	51	45
Loss on disposal of discontinued operations	6	36
(Gain)/loss on dispositions, net	(6)	24
Other charges and credits, net	512	214
Excess tax benefits from share-based payment arrangements	(19)	(5)
Changes in assets and liabilities –
Accounts receivable	8	(391)
Inventories, net of advances and progress billings	(7,387)	(1,525)
Accounts payable	313	1,141
Other accrued liabilities	668	1,327
Advances and billings in excess of related costs	238	(680)
Income taxes receivable, payable and deferred	822	607
Other long-term liabilities	328	(12)
Pension and other postretirement plans	1,335	1,140
Customer financing, net	717	104
Other	(76)	199
Net cash provided by operating activities	2,952	5,603
Cash flows - investing activities:
Property, plant and equipment additions	(1,125)	(1,186)
Property, plant and equipment reductions	63	27
Acquisitions, net of cash acquired	(932)	(639)
Contributions to investments	(15,548)	(2,629)
Proceeds from investments	12,425	1,041
Payments on Sea Launch guarantees		(448)
Reimbursement of Sea Launch guarantee payments	82	40
Receipt of economic development program funds	206
Purchase of distribution rights	(2)
Net cash used by investing activities	(4,831)	(3,794)
Cash flows - financing activities:
New borrowings	41	5,961
Debt repayments	(689)	(551)
Payments to non-controlling interests		(40)
Repayments of distribution rights financing	(137)
Stock options exercised, other	87	10
Excess tax benefits from share-based payment arrangements	19	5
Employee taxes on certain share-based payment arrangements	(30)	(21)
Common shares repurchased		(50)
Dividends paid	(1,253)	(1,220)
Net cash (used)/provided by financing activities	(1,962)	4,094
Effect of exchange rate changes on cash and cash equivalents	(15)	44
Net (decrease)/increase in cash and cash equivalents	(3,856)	5,947
Cash and cash equivalents at beginning of year	9,215	3,268
Cash and cash equivalents at end of period	$ 5,359	$ 9,215

The Boeing Company and Subsidiaries
Summary of Business Segment Data
(Unaudited)
	Twelve months ended		Three months ended
	December 31		December 31
(Dollars in millions)	2010	2009	2010	2009
Revenues:
Commercial Airplanes	$ 31,834	$ 34,051	$ 8,184	$ 9,183
Boeing Defense, Space & Security:
Boeing Military Aircraft	14,238	14,304	3,627	3,805
Network & Space Systems	9,455	10,877	2,434	2,385
Global Services & Support	8,250	8,480	2,104	2,357
Total Boeing Defense, Space & Security	31,943	33,661	8,165	8,547
Boeing Capital Corporation	639	660	145	164
Other segment	138	165	31	40
Unallocated items and eliminations	(248)	(256)	25	3
Total revenues	$ 64,306	$ 68,281	$ 16,550	$ 17,937
Earnings/(loss) from operations:
Commercial Airplanes	$  3,006	$  (583)	$  627	$  1,020
Boeing Defense, Space & Security:
Boeing Military Aircraft	1,258	1,528	323	363
Network & Space Systems	711	839	218	141
Global Services & Support	906	932	275	325
Total Boeing Defense, Space & Security	2,875	3,299	816	829
Boeing Capital Corporation	152	126	6	14
Other segment	(327)	(152)	(73)	(47)
Unallocated items and eliminations	(735)	(594)	(273)	(123)
Earnings from operations	4,971	2,096	1,103	1,693
Other income/(expense), net	52	(26)	32	(33)
Interest and debt expense	(516)	(339)	(132)	(110)
Earnings before income taxes	4,507	1,731	1,003	1,550
Income tax (expense)/benefit	(1,196)	(396)	163	(267)
Net earnings from continuing operations	3,311	1,335	1,166	1,283
Net loss on disposal of discontinued operations, net of taxes of
$2, $13, $1 and $8	(4)	(23)	(2)	(15)
Net earnings	$  3,307	$  1,312	$  1,164	$  1,268
Research and development expense, net:
Commercial Airplanes	$  2,975	$  5,383	$  873	$  741
Boeing Defense, Space & Security:
Boeing Military Aircraft	589	582	130	115
Network & Space Systems	417	397	90	104
Global Services & Support	130	122	31	33
Total Boeing Defense, Space & Security	1,136	1,101	251	252
Other segment	10	22	10	9
Total research and development expense, net	$  4,121	$  6,506	$  1,134	$  1,002
Unallocated items and eliminations:
Share-based plans expense	$  (136)	$  (189)	$  (24)	$  (49)
Deferred compensation expense	(112)	(158)	(28)	(24)
Pension	54	110	(10)	41
Post-retirement	(59)	(93)	(23)	(32)
Capitalized interest	(54)	(53)	(13)	(11)
Other	(428)	(211)	(175)	(48)
Total	$  (735)	$  (594)	$  (273)	$  (123)

The Boeing Company and Subsidiaries
Operating and Financial Data
(Unaudited)
	Twelve months ended				Three months ended
Deliveries	December 31				December 31
Commercial Airplanes	2010		2009		2010		2009
737	376		372		95		92
747			8				2
767	12		13		3		3
777	74		88		18		25
Total	462		481		116		122
Boeing Defense, Space & Security
Boeing Military Aircraft
F/A-18 Models	50		49		11		13
F-15E Eagle	13		13		3		3
C-17 Globemaster	14		16		4		4
KC-767 Tanker	1		2		1		1
CH-47 Chinook	20		11		7		7
T-45TS Goshawk			7				1
AH-64 Apache	13		23		2		3
AEW&C	4				1
Network & Space Systems
Delta II	1		1		1		1
Delta IV	1		1
Commercial and Civil Satellites	3		3		1		1
Military Satellites	1		3
			December 31		September 30		December 31
Contractual backlog (Dollars in billions)			2010		2010		2009
Commercial Airplanes			$255.6		$255.2		$250.5
Boeing Defense, Space & Security:
Boeing Military Aircraft			25.1		25.7		26.4
Network & Space Systems			9.6		8.3		7.7
Global Services & Support			13.7		12.3		11.9
Total Boeing Defense, Space & Security			48.4		46.3		46.0
Total contractual backlog			$304.0		$301.5		$296.5
Unobligated backlog			$16.9		$19.4		$19.1
Total backlog			$320.9		$320.9		$315.6
Workforce			160,500	*	159,600	*	157,100
*Note: Workforce data vary from those reported in 2009 and earlier. The new totals include all subsidiaries, some of which were excluded in prior years.

SOURCE The Boeing Company

APES 0032

 Esta tira es un homenaje cinematográfico, como otras tantas... Esperamos que os guste

Boeing Receives $1.6B Contract for P-8A Poseidon Low-Rate Initial Production

SEATTLE, Jan. 25, 2011 -- Boeing [NYSE: BA] on Jan. 21 received a $1.6 billion contract from the U.S. Navy for low-rate initial production (LRIP) of the P-8A Poseidon aircraft. The LRIP 1 contract is for six P-8A aircraft, spares, logistics and training devices.

The Navy plans to purchase 117 of the Boeing 737-based P-8A anti-submarine warfare, anti-surface warfare, intelligence, surveillance and reconnaissance aircraft to replace its P-3 fleet. Initial operational capability is planned for 2013.

“Providing these production aircraft to the Navy fleet on schedule is our No. 1 goal,” said Chuck Dabundo, Boeing vice president and P-8 program manager. “This is an exciting day for Boeing and the Navy and a testament to the P-8 team’s hard work and determination.”

"This first production contract represents a significant commitment by the U.S. Navy to recapitalize its force of long-range maritime patrol and reconnaissance aircraft," said Capt. Leon Bacon, P-8A deputy program manager for the Navy. “Ensuring that this capability arrives on schedule and within budget remains our primary objective.”

Boeing will begin final assembly of the first LRIP aircraft at its Renton, Wash., facility this summer. The Poseidon team is using a first-in-industry in-line production process that draws on Boeing’s Next-Generation 737 production system. All P-8A-unique aircraft modifications will be made in sequence during fabrication and assembly.

“The in-line approach we’ve incorporated on this military derivative aircraft is already paying the dividends we expected by helping us improve efficiency and reduce costs,” said John Pricco, Boeing Commercial Airplanes P-8 program manager.

As part of the U.S. Navy System Development and Demonstration contract awarded to Boeing in 2004, the team is building and testing six flight-test and two ground-test aircraft. The first three flight-test planes, T1, T2 and T3, are completing testing at Naval Air Station Patuxent River, Md. The program’s static test plane, S1, recently completed its test program, which began in May 2009; S2, the fatigue test plane, will begin testing later this year.

A derivative of the Next-Generation 737-800, the Poseidon is built by a Boeing-led industry team that includes CFM International, Northrop Grumman, Raytheon, Spirit AeroSystems, BAE Systems and GE Aviation.

Boeing

Press Release - 100,000 flying hours for Eurofighter Typhoon

The operational fleet of Eurofighter Typhoons in service since the second half of 2003 achieved the impressive milestone of 100,000 flying hours in January 2011.

This total was celebrated today during an event held at Eurofighter headquarters in Munich, Germany. At the event were senior representatives from the Eurofighter programme, Eurofighter management agency NETMA alongside senior staff from all six customer nations including those from the export customers Austria and the Kingdom of Saudi Arabia.


The 100,000 hours were achieved flying the Typhoons in the bitter cold weather of the Baltic Sea, in the temperate climate of the Tyrrhenian Coast, in the torrid heat of the Arabic Peninsula and over the rough South Atlantic Sea. A range of operational scenarios have tested the Typhoon to its limits and is testament to the reliability; operational readiness and the durability of the platform and systems under operational conditions.


Enzo Casolini, CEO of Eurofighter GmbH stated “This achievement for the Eurofighter programme demonstrates the maturity reached by the platform and the reliability of it as a defence system. In addition, this key event shows in clear terms what can be achieved through international cooperation and partnership. With so much achieved to date and so much still to look forward to, I am proud to say I am part of such a successful programme”.


With the first 5,000 flying hours achieved by November 2005, 10,000 hours came in August 2006, 20,000 in May 2007 and by August 2008 the Typhoon had surpassed 50,000 hours. This increase in activity matches the steady delivery of aircraft to the customers. The operational fleets have more than 260 aircraft in service - the largest number among the new generation fighters available in the world today.


These fleets are spread across a wide range of squadrons and deployments; six from the UK (four in Coningsby, one in Leuchars and one in Mount Pleasant, Falkland Islands); four in Italy (two in Grosseto and two in Gioia del Colle); three in Germany (Laage, Neuburg and Nörvenich), as well as one each in Spain, Austria and in the Kingdom of Saudi Arabia - all having contributed to the 100,000 flying hour total.


With Tranche 2 production in full swing, all 148 Tranche 1 aircraft delivered and the retrofit programme bringing them all to their latest block configuration, the Typhoon is establishing its footprint within the partner and export Customer air forces as the backbone of the operations both in terms of air dominance and ground support roles.


This new milestone for the Eurofighter programme provides another strong message about the operational availability of the Typhoon and highlights the benefits of investing in such a capable aircraft. Video footage of each nation participating in the 100,000th hour was shown to guests at the event. The video is available on line at www.eurofighter.com/media/video-library.html


Eurofigther

First Metal Cut for first A350 XWB series floor grid at Premium AEROTEC’s Augsburg plant

The first metal cut for the first series floor beam of the new Airbus A350 XWB was performed at Premium AEROTEC’s Augsburg plant today.
Augsburg, 24 enero 2011

The high-speed aluminium-lithium cutting centre had been newly equipped for the purpose, as had many other production facilities and hangars, particularly those for the production and processing of carbon fibre fuselage shells at the Nordenham and Augsburg plants. Premium AEROTEC is the world’s largest supplier of fuselage structures for the A350 XWB.

“We are well on track with our A350 production, and will deliver to our largest customer, Airbus, on time and on quality,” said Dr. Dieter Meiners, Chief Operating Officer (COO) and head of operations at Premium AEROTEC.

“Premium AEROTEC is once again demonstrating its flexibility and reliability as a strategic tier-1 supplier,” added Joachim Nägele, Premium AEROTEC executive management spokesman and head of programmes and sales.

“We are proud to be using state-of-the-art metal-cutting processes at our Augsburg plant yet again, and positioning our company at the forefront of technology in this area too,” said plant manager Peter Schwarz on the occasion of the first metal cut.

Premium AEROTEC GmbH has over 6,000 employees and generated revenues of 1.1 billion euros in 2009. Its core business is the development and manufacturing of metal and carbon composite aerostructures and the associated equipment and production systems. The company has production plants in Augsburg, Bremen, Nordenham and Varel in Germany, and in Ghimbav, Braşov County, Romania

EADS

Saab delivers nEUROn UAV fuselage to Dassault Aviation

Linköping, 25 January 2011. - Saab AB (Sweden) officially delivered the front and central fuselage sections of the nEUROn European UCAV technology demonstrator to the Prime contractor, Dassault Aviation (France). For both companies, this delivery constitutes an important milestone after six years of acquisition, sharing and strengthening of know how in the fields of technology and program cooperation. Both companies express their satisfaction about this success that will culminate in nEUROn’s maiden flight in mid-2012 to be followed by several flight test campaigns.

The Saab fuselage section will be transported from Linköping to Istres where it will meet the rear fuselage section already delivered in mid-January by HAI (Greece). The structural elements built by the other partners will rapidly converge towards Istres (France): the ordnance release pantograph by RUAG (Switzerland) will arrive end of February; the two half wings by EADS-CASA (Spain) will arrive beginning of March; the two weapon bay doors by Alenia (Italy) will arrive end of March; and the three landing gear doors by Saab will arrive in April. In addition, several stealthiness-related parts will be delivered by Dassault Aviation between January and March.

The Prime contractor with its five other industrial partners and the Executive Agency have already drawn substantial lessons from the program, including in the field of program management and schedule optimization. The Dassault team, assisted by the teams delegated to Istres by the various industrial partners, will perform the final layout, piping, electrical wiring and equipment fitting, as defined in the digital mock-up reference established by the six partners on the virtual plateau, as well as the final assembly. Then, during the last quarter of 2011, the Dassault Aviation team will perform the ground tests of the nEUROn, followed by the first engine run-up by end 2011, aiming at a maiden flight in mid-2012.

Dassault

Boeing Begins Flight Testing UK Chinook Mk4

Boeing and its Boeing Defence UK subsidiary today announced that the Boeing UK Rotorcraft Support team has begun flight testing the first Chinook Mk4 helicopter for the Royal Air Force (RAF). The first flight took place on Dec. 9 in Hampshire, England.

"Project JULIUS, as the Mk4 program is known, will modernize the current Royal Air Force Chinook fleet – essentially giving us new aircraft," said Chris White-Horne, Mk4 project team leader for the United Kingdom Ministry of Defence.

Project JULIUS will modify 38 Mk2/2A Chinooks into the Mk4/4A configuration and eight Mk3 Chinooks into the Mk5 configuration. All the aircraft will be delivered to RAF Odiham in Hampshire.

A major part of the modification for both the Mk4/4A and Mk5 aircraft is the Thales TopDeck cockpit. Thales UK is under contract with Boeing to supply its Cockpit Display System/Mission Avionic System, which will provide improved situational awareness, increased safety and options for capability enhancement. The upgraded and integrated cockpit display includes four multifunction displays, two stand-by flight displays, updated communications interfaces, and two new air data computers.

"The first of the modified JULIUS Chinook helicopters is expected to be available to commanders before the end of 2011," said David Pitchforth, managing director, Boeing UK Rotorcraft Support. "The entire Mk2 fleet will be fitted with the JULIUS cockpit by early 2015, followed by Mk2A and Mk3 modifications by 2015 and 2016, respectively."

The modifications also include the addition of a third crew-member seat and an update of Airworthiness & Safety Certification and Qualification for the modernized Chinook. The aircraft are being modified at the Gosport Fleetlands facility operated by Vector Aerospace, Boeing's principal subcontractor for deep support of the RAF Chinook fleet. Vector Aerospace has established a dedicated production line at Fleetlands to support the JULIUS program, with specialist component manufacture provided from its Almondbank facility near Perth, Scotland.

"Vector Aerospace is delighted to be associated with this significant milestone. It is a testimony to the skill and dedication of our teams in Fleetlands and Almondbank, who have worked in a spirit of true partnership with our customer Boeing and the key equipment suppliers," said Tim Rice, managing director, Vector Aerospace UK.

A wholly owned subsidiary of The Boeing Company and a business unit of Boeing Defense, Space & Security, Boeing Defence UK Ltd. currently has employees at 20 locations throughout the UK supporting Ministry of Defence and U.S. military programs.

Boeing UK Rotorcraft Support, working with Boeing Global Services & Support's Rotorcraft Support business, is focused on providing increased capability to the United Kingdom’s military rotorcraft fleet. Supported by Boeing Defence UK, UK Rotorcraft Support has employees in Afghanistan, the UK, and the U.S., supporting Royal Air Force Chinooks and British Army Air Corps Apache fleets.

Boeing

Eurocopter juega bien sus cartas en 2010, a pesar de la crisis económica mundial

Eurocopter incrementó su volumen de negocio en 2010 gracias a la entrega de 527
helicópteros. El año estuvo también marcado por logros en el área de innovación, por el
desarrollo de nuevos productos y servicios, así como por el programa de transformación
SHAPE. Estos factores posicionan favorablemente a la empresa de cara a la esperada
recuperación del mercado de helicópteros civiles y militares.

Las entregas efectuadas en 2010 trajeron consigo un volumen de negocio de 4.800 millones de
euros, representando un crecimiento del 6% respecto al año anterior. Éstas incluyeron 28
helicópteros militares polivalentes NH90 y 15 helicópteros de ataque Tigre, duplicando ambos el
número de unidades respecto al año 2009, así como los 3 primeros EC725, de los 50
destinados a las fuerzas armadas de Brasil, y el centésimo UH-72A entregado al ejército
norteamericano, conforme al presupuesto y al calendario establecidos.

Con 346 pedidos recibidos el pasado año, Eurocopter alcanza el volumen de negocio de los
años de apogeo, 2007 y 2009, con un valor de 4.300 millones de euros. Los pedidos abarcan
importantes contratos referentes a la familia Super Puma firmados con Malasia y México, así
como estratégicos contratos de helicópteros Ecureuil, provenientes de Rusia y Estados Unidos.

“Aunque el año 2010 siguió constituyendo un reto para nuestra industria, hemos hecho
importantes avances que nos permitirán estar bien situados con miras a la esperada
recuperación del mercado en 2012 y más allá”, dice el Presidente de Eurocopter, Lutz Bertling.
“En el futuro, nuestra fortaleza nacerá de las continuas y crecientes inversiones efectuadas por
Eurocopter en la gama de productos y en sus capacidades industriales, de la expansión de
nuestra presencia mundial y de importantes mejoras en los servicios que ofrecemos”.

Volumen de negocio consolidado
Las entregas de helicópteros de nueva fabricación representaron el 53% del volumen de
negocio consolidado de Eurocopter en 2010; por otro lado, el soporte y los servicios
significaron un 36% del total. El 11% restante es resultado de otras actividades como la
investigación y el desarrollo.

Pedidos
La mayor parte de los pedidos recibidos por Eurocopter en 2010 proceden de los servicios
y de las ventas de exportación. Los pedidos de helicópteros nuevos representan el 49% del
total, los servicios un 42% y otras actividades como el desarrollo, un 9%. El aumento de los
pedidos relativos al soporte obedece a la Visión 2020 de Eurocopter y al objetivo de
reforzar la línea de negocios ligada a los servicios. La cuota de pedidos de helicópteros
nuevos se descompone en un 51% de aparatos civiles y un 49% de helicópteros militares.
Del total de pedidos cursados en 2010, un 73% recae en las ventas de exportación y el
27% restante en los mercados domésticos europeos de Eurocopter.

Pedidos por gama de productos
Los 346 pedidos de helicópteros recibidos en 2010 se desglosan del siguiente modo:
• 143 helicópteros AS350/AS355 de la familia Ecureuil/Fennec/EC130
• 67 EC135
• 52 EC145 (incluidos 40 UH-72A Lakota)
• 45 helicópteros de la familia Super Puma/Cougar EC225/EC725
• 27 helicópteros de la familia Dauphin/Panther/EC155
• 12 helicópteros EC120 Colibrí

Momentos fuertes del año 2010
Entre los momentos fuertes de 2010 se encuentran el inicio de las pruebas en vuelo del
demostrador de alta velocidad X3, elemento central del enfoque innovador dado por la empresa
a su estrategia de negocio. El X3 alcanzó el hito de lograr la velocidad de 180 nudos sólo dos
meses después de su primer vuelo. También el primer vuelo del segundo prototipo del EC175
tuvo lugar el año pasado -lo que supone un gran paso adelante en este programa llevado a cabo
conjuntamente con China. Al mismo tiempo también iniciaban las pruebas en vuelo de los
helicópteros CH-53GA, completamente modernizados por Eurocopter para el Ejército alemán.

Además, en 2010 se han fortalecido considerablemente la capacidades de formación y de
soporte y servicios de Eurocopter con las siguientes iniciativas: la inauguración de una nueva
filial en la India, la decisión de extender los servicios de mantenimiento en China, la
inauguración de nuevas y más amplias instalaciones en Singapur, la ampliación del centro de
formación de vuelo de Eurocopter en Alemania y la creación de la nueva plataforma logística
global en Francia.

El programa de transformación SHAPE, implantado por Eurocopter a principios de 2010 para
contrarrestar la crisis económica global y hacer frente a los retos competitivos de la industria, ya
da fruto en términos de desarrollo de nuevos productos, mejoras en el servicio al cliente,
innovación, eficacia de la empresa y ahorro de costes –con más de 100 millones de euros de
economía, de los 200 millones previstos hasta finales de 2011. Asimismo también en este año
se espera obtener beneficios adicionales del programa.

Plan de vuelo para el año 2011
La estrategia de Eurocopter para los próximos 12 meses contempla la ampliación y la
modernización de su gama de helicópteros mediante el lanzamiento de un nuevo programa, el
primer vuelo de un nuevo producto y una nueva certificación de un helicóptero.

Las capacidades industriales de la empresa se extenderán y fortalecerán con el nuevo centro de
excelencia de helicópteros destinado al EC725 en Brasil, con la creación de una unión temporal
de empresas (joint venture) para el ensamblaje de helicópteros EC145 en Kazajistán y con la
consolidación y mejora de las instalaciones de Eurocopter en Europa.

El enfoque de Eurocopter hacia su oferta de servicios cubrirá desde inversiones en simuladores
integrales de vuelo (full-flight simulators) y la creación de nuevos centros de mantenimiento
certificados en el Reino Unido, Sudeste de Asia y Brasil, hasta la ampliación de las capacidades
globales a través de asociaciones y compras. En 2011 se pondrá especial énfasis en la mejora
de la seguridad de las flotas de operadores menores, así como en aquellos mercados en los que
Eurocopter ha comenzado apenas a introducirse.



Nota de prensa de Eurocopter

LUFTHANSA AND ISRAEL AEROSPACE INDUSTRIES HAVE SUCCESSFULLY CONDUCTED AN OPERATING TEST FOR THE TAXIBOT™ USED WITH A B747-400

Lufthansa and Israel Aerospace Industries (IAI) have successfully conducted an operating test for the TaxiBot™ used with a B747-400 to demonstrate its ability to tow an airplane from gate to runway and back under typical taxiing conditions. The test was conducted at the Frankfurt International Airport.

TaxiBot™ is a joint development by IAI's Lahav Division and Airbus of an innovative environmentally-friendly pilot-controlled semi-robotic towing system. The Taxibot™ Dispatch Towing system, designed by IAI, allows airplanes to taxi to and from the airport gate to the runway without the need to operate their jet engines.

During the demonstration, following TaxiBot™ push-back, all taxiing processes were controlled by the aircraft's pilots from the cockpit, using the normal tiller and braking pedals just as in regular airplane taxiing. The TaxiBot's™ special control system controlled the load on the aircraft's Nose Landing Gear (NLG) in real time, maintaining it within a pre-calculated envelope, such that there is an insignificant fatigue effect on the NLG. Despite the severe weather conditions which prevailed during the Frankfurt test, the demonstrator system showed excellent capabilities and successfully maintained the defined envelope.

After the test, Bernd Pfeffer, a Lufthansa B747 pilot said: "The overall impression is very good, and better than I expected. Steering the aircraft using the TaxiBot™ with all kinds of turns was absolutely to my liking in addition to the accelerating and braking capabilities that were good. A big advantage of using the TaxiBot™ is on icy or slippery surfaces where traction is now better, and safety is increased when turning. I wouldn't change anything at all".

Itzhak Nissan, IAI's CEO said:" The TaxiBot™ development is naturally integrated in IAI's policy regarding new business areas such as ground robotics, and renewable energy "

The test, conducted on a Lufthansa commercial B747-400 aircraft, followed a test in Toulouse on an Airbus A340-600 test aircraft, conducted by Airbus and IAI during the second quarter of 2010 that showed promising results.

Yehoshua (Shuki) Eldar, IAI's Corporate VP, Business Development and Subsidiaries, commented: "The successful B747-400 Frankfurt test joins the Toulouse A340 test in showing that IAI’s innovative concept can help airliners save large amounts of fuel and help airports around the world reduce their annual fuel costs, noise and CO2 emissions by a significant margin."

With the conclusion of the B747 test, the TaxiBot™ demonstrator showed that it can successfully perform dispatch towing missions with both Airbus and Boeing aircraft, which represent the bulk of commercial aircraft in current use.

The Frankfurt test is a further milestone in the TaxiBot™ program which was launched in mid-2008 with the contribution of a Lufthansa LEOS Krauss-Maffie TPS-1 which became IAI's base vehicle for the TaxiBot™ concept demonstrator.

From the start of the program, Lufthansa LEOS supported the TaxiBot™ team consisting of IAI, Airbus, TLD, a French world leader in the manufacture of Ground Support Equipment (GSE) and Ricardo (a British vehicle engineering designer) and it was therefore only natural that the TPS-1 vehicle would return to its home base, with its new design and state-of-the-art technologies, to lead the way in proving the concept of such an innovative program as TaxiBot.

Current work is continuing to develop a TaxiBot™ prototype vehicle for Narrow Body airplanes, such as the A320 and B737 families.

Further demonstrator tests on Airbus aircraft are scheduled for the second quarter of 2011, to allow various operational and technical conclusions to be reached regarding prototype development and bring the system design to maturity prior to serial production.

The TaxiBot™ prototype is scheduled to get certification for the first airplane during 2012 and deliveries of the first units to customers should begin before the end of that year.


IAI