CHICAGO, July 27, 2011 /PRNewswire-FirstCall/ --

• Earnings per share of $1.25 reported on revenue of $16.5 billion
• Operating cash flow of $1.6 billion reflects strong operating performance
• Cash and marketable securities of $8.8 billion provide strong liquidity
• Backlog of $323 billion is over four times current annual revenue projection
• 2011 earnings per share guidance increased to between $3.90 and $4.10 per share on strong core performance across businesses

The Boeing Company (NYSE: BA) reported second-quarter net income of $0.9 billion, or $1.25 per share, on revenue of $16.5 billion.  Operating margin of 9.3 percent reflects higher Commercial Airplanes volume and strong core performance across the company's businesses, partially offset by higher pension expense.  The company increased its 2011 earnings per share guidance to between $3.90 and $4.10 per share reflecting the strong core performance.  Total company 2011 revenue and cash flow guidance is unchanged.

"Strong operational performance drove double-digit margins at both of our major businesses and produced outstanding results in the quarter," said Jim McNerney, Boeing chairman, president and chief executive officer.  "We also made major progress toward certification and delivery of the 787 Dreamliner and 747-8 and continued our disciplined increases in commercial airplane production rates.  Our outlook for the year has strengthened as our team continues its relentless focus on productivity improvement, cash management and program execution."

Boeing's quarterly operating cash flow was $1.6 billion, reflecting strong operating performance and continued investment in development programs.  Free cash flow* was $1.3 billion in the quarter (Table 2).

Cash and investments in marketable securities totaled $8.8 billion at quarter-end (Table 3), up from $7.8 billion at the beginning of the quarter.  Debt was essentially unchanged in the quarter.

Total company backlog at quarter-end was $323 billion, down from $329 billion at the beginning of the quarter.  Net orders for the quarter were $12 billion and included a significant mix of wide-body commercial airplanes.  Backlog is up $2.7 billion from year-end, reflecting $35 billion of net orders in the first half of 2011.

Segment Results  

Commercial Airplanes

Boeing Commercial Airplanes second-quarter revenue increased by 19 percent to $8.8 billion on higher deliveries, improved model mix and higher services volume.  Operating margin was 10.4 percent, reflecting the higher revenue and strong operating performance, partially offset by higher R&D (Table 4).  

Flight testing activities on the 787 and 747-8 Freighter programs are nearing completion.  During the quarter, both programs entered into Function and Reliability testing, while the 787 program also began Extended Operations testing.  First deliveries of the 787 and 747-8 Freighter are expected later in the third quarter.

Total firm orders for the 787 at quarter-end were 827 airplanes from 57 customers.  Commercial Airplanes booked 65 net orders during the quarter and 171 during the first half of 2011.  Backlog remains strong with more than 3,300 airplanes valued at $262 billion.

Boeing Defense, Space & Security

Boeing Defense, Space & Security's second-quarter revenue was $7.7 billion, while operating margin was 10.4 percent (Table 5).

Boeing Military Aircraft (BMA) second-quarter revenue was $3.6 billion.  Operating margin was 10.6 percent, reflecting strong operating performance.  Last year's results were impacted by a charge on the Airborne Early Warning & Control program.  During the quarter, India signed an agreement for ten C-17s, which are expected to be on contract later this year, and BMA was awarded the U.S. Navy's study contract for the Unmanned Carrier-Launched Airborne Surveillance and Strike Program.

Network & Space Systems (N&SS) second-quarter revenue decreased to $2.1 billion, due to funding reductions in Brigade Combat Team Modernization and lower SBInet volume.  Operating margin was 9.5 percent, reflecting United Launch Alliance performance and a gain on the sale of property.  During the quarter, the GPS Operational Control Segment entered service with the U.S. Air Force and the High Energy Laser program completed system integration.

Global Services & Support (GS&S) second-quarter revenue was $2.0 billion.  Operating margin was 10.9 percent, reflecting strong performance in integrated logistics.  During the quarter, GS&S was awarded modernization and upgrade contracts from the U.S. Air Force.

Backlog at Defense, Space & Security decreased to $61 billion on run-off of multi-year contracts, and remains nearly two times the unit's expected 2011 revenue.  

Additional Financial Information