Boeing Revenues Grow 12% to $14.3-B in 1Q 2006

CHICAGO, April 27, 2006/Satnews Daily/ — Boeing Company (NYSE:BA) reported on Wednesday double-digit increases in its first-quarter financial performance, posting a 29 percent higher first-quarter profits lifted by stronger sales of its commercial airplanes.

Boeing's first-quarter net income rose 29 percent to $692 million from $535 million a year ago, and earnings per share rose 33 percent to $0.88 per share from $0.66 per share last year.

Revenue for the quarter increased 12 percent to $14.3 billion from $12.7 billion, operating cash flow grew 46 percent to $2.1 billion and the company's operating margin rose to 6.7 percent from 5.4 percent. Boeing said the growth primarily reflects the record 1,002 commercial airplane orders won during 2005 and the additional 176 orders received during the first quarter of 2006.

“Strong overall performance, combined with a significant increase in commercial airplane deliveries, drove this quarter's results,” said chairman, president, and chief executive Jim McNerney.

Boeing's backlog at quarter end was a record $213 billion, up 42 percent from a year ago and 4 percent in the quarter.

Boeing Commercial Airplanes' (BCA) first quarter revenues increased 48 percent to $7.1 billion on 40 percent growth in airplane deliveries. Operating earnings rose 81 percent and operating margins increased to 10 percent, reflecting higher revenues, favorable model mix and productivity improvements.

Boeing Integrated Defense Systems (IDS) also produced another quarter of double-digit operating margins, delivering 11.4 percent profitability on $7.2 billion of revenue. Boeing said strong execution in both the Precision Engagement and Mobility Systems and Support Systems segments drove these results. Revenue, however, declined 6 percent from a year ago as Support Systems's 10 percent revenue growth was offset by lower volume in Proprietary and commercial satellite programs, strike-delayed launches, and the August 2005 sale of our Rocketdyne business.

The company's also reaffirmed its financial guidance for 2006 and 2007. Boeing said its 2006 revenue is expected to be approximately $60 billion. Revenue guidance for 2007 is reaffirmed to be between $63.5 billion to $64.5 billion. Earnings per share for 2006 is expected to be between $3.25 and $3.45, Boeing said.

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