The Boeing Company reported higher revenue for the second quarter of the year, registering US$24.3 billion, up 5% from the second quarter of 2017, reflecting 194 commercial deliveries and higher mix, defense volume, and services growth. Earnings per share increased to $3.73, reflecting solid execution across the company, the U.S. aircraft maker said in a statement. Results also reflect a charge related to the previously announced Spirit litigation outcome, it added.
Moreover, Boeing delivered strong operating cash flow of $4.7 billion, repurchased $3.0 billion of shares, and paid $1.0 billion of dividends.
The company’s revenue guidance increased $1 billion to between $97.0 and $99.0 billion, driven by defense volume and services growth. Commercial airplanes margin guidance is increased to greater than 11.5% on strong performance, and defense, space & security margin guidance was adjusted to reflect the impact of cost growth on the KC-46 Tanker program.
“We are seeing the results of our One Boeing approach as our teams work together across the Boeing enterprise to deliver value to our customers and grow our business. In the quarter, we generated improved revenue and earnings, delivered strong cash and captured $27 billion in new orders,” said Boeing chairman, president, and chief executive officer Dennis Muilenburg.
“We celebrated the first anniversary of the launch of Boeing Global Services and the one-year revenue service anniversary of the 737 MAX. We booked 239 net commercial airplane orders in the quarter, which included 59 787s—further demonstrating the value this airplane family brings to our customers.
“Solid progress continued on the 777X program with the first two test aircraft currently being built in the factory. We finalized the production contract for 28 F/A-18 Super Hornets for Kuwait, completed production of the 100th P-8 Poseidon, and conducted two successful tests for the U.S. Air Force’s Minuteman III. Our services business delivered the first 737 Boeing Converted Freighter and secured performance based logistics contracts to support rotorcraft in the Netherlands. Additionally, customers continued to recognize the value of our digital solutions with Etihad Airways signing a contract to implement our crew management solutions,” Muilenburg added.
“Continued services growth, increasing defense volume and strong performance of our commercial business, as well as our positive market outlook, give us the confidence to raise our revenue and Commercial Airplanes margin guidance for the year. We remain focused on execution, driving innovation, continuing to develop and maintain the best team and talent in the industry, and increasing value for our customers, shareholders, employees and other stakeholders.”
Commercial airplanes second-quarter revenue was $14.5 billion, reflecting higher deliveries and mix. Second-quarter operating margin increased to 11.4%, reflecting strong operating performance on production programs, including a higher 787 margin, partially offset by a charge of $307 million related to cost growth on the KC-46 tanker program.
During the quarter, commercial airplanes delivered 194 airplanes, including delivery of the first 737 MAX airplanes to Jet Airways, Ethiopian Airlines, and Xiamen Airlines. The 737 MAX program celebrated the one-year anniversary of entering revenue flight service and continues to be well received in the market with over 4,600 orders since its launch, said the company. The 777X program remains on track for delivery in 2020 as the first two test airplanes moved into the low-rate initial production line.
Commercial airplanes booked 239 net orders during the quarter, including 91 widebodies. Backlog remains robust with nearly 5,900 airplanes valued at $416 billion.
