CHICAGO, Oct. 26, 2011 /PRNewswire/ --

• Earnings per share of $1.46 reported on revenue of $17.7 billion
• Backlog grew to $332 billion, including $26 billion in orders during the quarter
• Operating cash flow of $0.4 billion reflects continued investment in development programs and $0.5 billion of pension funding
• Cash and marketable securities of $9.2 billion provide strong liquidity
• 2011 earnings per share guidance increased to between $4.30 and $4.40 per share on strong core performance across businesses

The Boeing Company (NYSE: BA) reported third-quarter net income of $1.1 billion, or $1.46 per share, on revenue of $17.7 billion.  Operating margin of 9.7 percent reflects continued 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 $4.30 and $4.40 per share reflecting the strong core performance.  Total company 2011 revenue is narrowed to between $68 and $70 billion.  Operating cash flow guidance is unchanged.

"Strong operational performance drove double-digit margins in both of our major businesses and produced an outstanding quarter," said Boeing chairman, president and chief executive officer, Jim McNerney.  "We also strengthened our foundation for accelerated growth by completing development and certification of the 787-8 Dreamliner and 747-8 Freighter, launching the new 737 MAX, and continuing our disciplined ramp up in commercial airplane production rates.  Our improved outlook for earnings reflects confidence in our market positions, and our team's relentless focus on productivity and disciplined execution."

Boeing's quarterly operating cash flow was $0.4 billion, with strong operating performance more than offsetting continued investment in development programs and discretionary pension funding of $0.5 billion.  Free cash flow* was $0.1 billion in the quarter (Table 2).

Cash and investments in marketable securities totaled $9.2 billion at quarter-end (Table 3), up from $8.8 billion at the beginning of the quarter.  Debt balances grew to $12.4 billion at quarter-end, up from $11.6 billion, due to the issuance of new debt at Boeing Capital Corporation.

Total company backlog at quarter-end was $332 billion, up from $323 billion at the beginning of the quarter.  Net orders for the quarter were $26 billion and included a significant mix of wide-body commercial airplanes.  Backlog is up $10.7 billion from year-end, reflecting $61 billion of net orders in the first nine months of 2011.

Segment Results  

Commercial Airplanes

Boeing Commercial Airplanes third-quarter revenue increased by 9 percent to $9.5 billion on higher deliveries and improved mix.  Operating margin was 11.4 percent, reflecting continued strong operating performance (Table 4).  

During the quarter, the 787-8 and 747-8 Freighter completed flight testing activities and achieved FAA certification.  In September, the first 787 Dreamliner was delivered to launch customer, ANA, and, in October, the first 747-8 Freighter was delivered to Cargolux.  

At quarter end, the 787 had 821 units sold firm and approximately 200 options.  The company established the initial accounting quantity for the 787 program at 1,100 units, consistent with accounting practices applied on other new airplane programs.  

Also during third quarter, the company launched the 737 MAX, the new engine variant of the 737.  At the time of launch, the company had received nearly 500 order commitments.

Commercial Airplanes booked 255 net orders during the quarter and 426 during the first nine months of 2011.  Backlog remains strong with more than 3,500 airplanes valued at $273 billion.

Boeing Defense, Space & Security