The Boeing Company reported record revenue for the whole of last year as the aircraft manufacturer ended 2018 also with a record-breaking fourth quarter.
In a statement, Boeing said revenue of US$28.3 billion was realized in the fourth quarter of 2018, up 14% year-over-year and a company record. In the same period, GAAP (generally accepted accounting principles) earnings per share was $5.93, and core earnings per share (non-GAAP) amounted to $5.48, both also new records. Net earnings for the fourth quarter was $3.4 billion, an increase of 3% year-on-year.
These results reflect record commercial deliveries, higher defense and services volume and strong performance which outweighed favorable tax impacts recorded in the fourth quarter of 2017, Boeing said.
Revenue for the full year was a record $101.1 billion, an increase of 8% from 2017 and reflecting higher commercial deliveries and increased volume across the company. Records for GAAP earnings per share of $17.85 and core earnings per share of $16.01 were driven by higher volume, improved mix and solid execution. Net earnings rose 24% to $10.5 billion for the whole year.
“Across the enterprise our team delivered strong core operating performance and customer focus, driving record revenues, earnings and cash flow and further extending our global aerospace industry leadership in 2018,” said Boeing chairman, president and chief executive officer Dennis Muilenburg.
“Our financial performance provided a firm platform to further invest in new growth businesses, innovation and future franchise programs, as well as in our people and enabling technologies. In the last 5 years, we have invested nearly $35 billion in key strategic areas of our business, all while increasing cash returns to shareholders.”
“Our One Boeing focus, clear strategies for growth, and leading positions in large and growing markets, give us confidence for continued strong performance, revenue expansion and solid execution across all three businesses, which is reflected in our 2019 guidance.”
For its commercial airplanes segment, fourth-quarter revenue increased to $17.3 billion, up 12% from the same period in 2017 and reflecting higher deliveries and favorable mix. Fourth-quarter operating margin increased to 15.6%, driven by higher 737 volume and strong operating performance on production programs, including higher 787 margins.
During the quarter, there were 238 commercial airplanes delivered, including the delivery of the 787th 787 Dreamliner and the first 737 MAX Boeing Business Jet. The 737 program delivered 111 MAX airplanes in the fourth quarter, including the first MAX delivery from the China Completion Center, and delivered 256 MAX airplanes in 2018. The first 777X flight test airplane completed final body join and power-on, and the program remains on track for flight testing this year and first delivery in 2020.
Commercial airplanes booked 262 net orders during the quarter, valued at $16 billion. Backlog remains robust with nearly 5,900 airplanes valued at $412 billion, said Boeing.
For full-year 2018, commercial airplanes posted revenue of $60.7 billion, higher by 5% from the preceding year.
For 2019, the company said revenue guidance is between $109.5 billion and $111.5 billion, reflecting higher volume across all businesses, while GAAP EPS is seen to be between $21.90 and $22.10, and core EPS between $19.90 and $20.10.
