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The Boeing Company, together with its subsidiaries, is one of the world's largest aerospace companies and a leading manufacturer
of commercial jet aircraft and defense, space and security systems. The company supports airlines and U.S. and allied government customers in 150 countries.
Boeing's products and services include commercial and military aircraft, satellites, weapons, electronic and defense systems,
launch systems, advanced information and communication systems, as well as performance-based logistics and training.
In 1916, Boeing was incorporated in Seattle by William Boeing (as Pacific Aero Products Co.) but renamed the Boeing Airplane Co. the following year.
Today, the company is incorporated in Delaware with corporate offices located in Chicago.
Boeing operates in five principal business segments:
• Commercial Airplanes
• Boeing Defense, Space & Security (BDS)
Boeing Military Aircraft (BMA)
Network & Space Systems (N&SS)
Global Services & Support (GS&S)
• Boeing Capital Corporation (BCC)
• Other.
The following table highlights Boeing's sales from 2009 to 2011 by segment:
Boeing's "Other Segments" includes the unallocated activities of Engineering, Operations & Technology (EO&T) and Shared Services Group
(SSG), as well as intercompany guarantees provided to BCC. EO&T provides Boeing with technical and functional capabilities, including
information technology, research and development, test and evaluation, technology strategy development, environmental remediation
management and intellectual property management.
On February 24, 2011, Boeing was awarded a contract from the U.S. Air Force to design, develop, manufacture and deliver 4 next generation aerial refueling tankers.
The KC-46A Tanker will be a derivative of the 767 commercial aircraft. This contract is a fixed-price incentive firm contract valued at $4.9 billion
and involves highly complex designs. Changes to Boeing's estimated cost to perform the work could result in a material charge. This contract also contains production options.
If all options under the contract are exercised, the company expects to deliver 179 aircraft for a total expected contract value of approximately $30 billion.
For segment reporting purposes, backlog, revenues and costs are recorded in both the Commercial Airplanes and BMA segments.
The Commercial Airplanes segment develops, produces and markets commercial jet aircraft and provides related support services, principally
to the commercial airline industry worldwide. Boeing is a leading producer of commercial aircraft and offers a family of commercial jetliners
designed to meet a broad spectrum of passenger and cargo requirements of domestic and non-U.S. airlines.
This family of commercial jet aircraft in production includes the 737 narrow-body model and the 747, 767, 777 and 787 wide-body models.
Development continues on the 787-9 and 737 MAX derivatives. In the third quarter of 2011, Boeing launched the MAX variant of the 737
that will feature new and more fuel efficient engines. The Commercial Airplanes segment also offers aviation services support, aircraft modifications,
spares, training, maintenance documents and technical advice to commercial and government customers worldwide.
Financial results for Boeing's Commercial Airplanes segment were as follows:
Revenues for 2012 increased by $12,956 million or 36% compared with 2011 primarily due to higher new airplane deliveries across all programs.
Earnings from operations for 2012 increased by $1,216 million compared with 2011.
This was primarily due to higher new airplane deliveries, which drove an increase in earnings of $1,292 million,
and lower research and development expenditures of $666 million primarily due to lower spending on the 747-8 and 787-8 programs.
These increases were partially offset by lower earnings of $742 million driven by higher fleet support costs,
increased operating costs associated with business growth, other period costs and decreased earnings from commercial aviation services.
The decrease in operating margins from 9.7% in 2011 to 9.6% in 2012 was primarily due to the dilutive effect of the 787 and 747-8 deliveries.
Deliveries of commercial aircraft by model:
The BDS operations principally involve research, development, production, modification and support of the following products and related systems:
global strike systems, including fighters, bombers, combat rotorcraft systems, weapons and unmanned systems; global mobility systems, including
transport and tanker aircraft, rotorcraft transport and tilt-rotor systems; airborne surveillance and reconnaissance aircraft, including command
and control, battle management and airborne anti-submarine aircraft; network and tactical systems, including information and battle management
systems; intelligence and security systems; missile defense systems; space and intelligence systems, including satellites and commercial
satellite launching vehicles; and space exploration. BDS focuses on providing affordable, best-of-industry solutions and brings value
to customers through its ability to solve the most complex problems utilizing expertise in large-scale systems integration, knowledge of
legacy platforms and development of common network-enabled solutions across all customers' domains. BDS' primary customer is the United States
Department of Defense (DoD) with 70%, 76% and 82% of BDS revenues being derived from this customer in 2012, 2011 and 2010, respectively.
Other significant revenues were derived from the National Aeronautics and Space Administration (NASA) and international defense markets,
civil markets and commercial satellite markets. BDS consists of three capabilities-driven businesses: BMA, N&SS and GS&S.
Additionally, the Phantom Works group is an integrated team that works with the three businesses via product development, rapid prototyping
and customer engagement through experimentation and enterprise technology investment strategies.
Financial results for Boeing's BDS segment were as follows:
BDS revenues increased by $631 million in 2012 compared with 2011, due to higher revenues of $1,437 million in the BMA segment
and $264 million in the GS&S segment, partially offset by lower revenues of $1,070 million in the N&SS segment.
BDS operating earnings in 2012 decreased by $90 million compared with 2011 due to lower earnings of $201 million in the N&SS segment,
partially offset by higher earnings of $56 million and $55 million in the GS&S and BMA segments.
Included above are net favorable cumulative contract catch-up adjustments, which were $150 million higher in 2012 compared with 2011,
primarily reflecting higher favorable adjustments in the BMA segment.
Boeing Military Aircraft (BMA) is engaged in the research, development, production and modification of manned and unmanned military weapons systems for the
global strike, mobility and surveillance and engagement markets as well as related services. Included in this segment
are the AH-64 Apache,
Airborne Early Warning and Control (AEW&C),
CH-47 Chinook,
C-17 Globemaster III,
EA-18G Growler Airborne Electronic Attack Aircraft,
F/A-18E/F Super Hornet,
F-15 Strike Eagle,
Joint Direct Attack Munition,
P-8A Poseidon,
India P8-I, and V-22 Osprey.
During 2011, production deliveries concluded on the F-22 Raptor
and KC-767 International Tanker programs.
Financial results for BDS' MMA group were as follows:
BMA revenues increased by 10% in 2012 compared with 2011. The increase of $1,437 million in 2012 was primarily due to higher deliveries
on the P-8A and Apache programs of $1,050 million and higher milestone revenue of $426 million on the KC-46A Tanker program.
In addition, F-15 program revenues were $450 million higher reflecting initial revenues on the contract for the Kingdom of Saudi Arabia
partially offset by lower F-15 deliveries. These increases were partially offset by decreases of $723 million related to fewer deliveries
of C-17 aircraft in 2012 and the conclusion of the KC-767 International Tanker program in 2011.
Operating earnings increased by $276 million in 2011 primarily due to $236 million of higher earnings on the AEW&C program
reflecting the initial Peace Eye deliveries and lower reach-forward loss provisions in 2011 on the AEW&C Wedgetail and Peace Eagle contracts.
Lower reach-forward losses of $49 million on the KC-767 International Tanker program and lower research and development costs
also contributed to the earnings improvements.
Deliveries of new-build production aircraft, excluding remanufactures and modifications:
Network & Space Systems (N&SS) is engaged in the research, development, production and modification of the following products
and related services: electronics and information systems, including command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR),
cyber and information solutions, and intelligence systems; strategic missile and defense systems; space and intelligence systems,
including satellites and commercial satellite launch vehicles; and space exploration.
The major programs in this segment include for electronics and information systems:
Family of Advanced Beyond Line-of-Sight Terminals (FAB-T) and Joint Tactical Radio System (JTRS);
for strategic missile and defense systems:
Ground-based Midcourse Defense (GMD);
for space and intelligence systems:
commercial, civil and military satellites, including the
Global Positioning System (GPS)
and Wideband Global SATCOM
system; and for space exploration: International Space Station, Space Launch System (SLS) and Crew Space Transportation-100.
During 2011, the Brigade Combat Team Modernization (BCTM) and Space Shuttle programs concluded.
This segment also includes Boeing's joint venture operations related to United Launch Alliance and United Space Alliance.
Financial results for BDS' N&SS group were as follows:
N&SS revenues decreased by 12% in 2012 and 8% in 2011. The decrease of $1,070 million in 2012 was primarily due to $835 million of lower revenues
on the Brigade Combat Team Modernization (BCTM) program, which was terminated for convenience during 2011.
In addition, customer funding constraints on the GMD program and conclusion of the Space Shuttle program in 2011
reduced revenues by a total of $251 million. These decreases were partially offset by higher Space & Intelligence Systems revenues of $178 million
due to larger volume of deliveries in 2012.
The decrease of $795 million in 2011 was primarily due to $577 million of lower revenues on the BCTM program, which was terminated for convenience during 2011.
Lower revenues on the GMD, SBInet and Joint Tactical Radio System programs of $150 million, $146 million and $93 million, respectively,
were more than offset by $150 million of higher sales of Delta inventory to United Launch Alliance (ULA)
and $250 million of higher commercial and civil satellite revenues.
Delta launch vehicle and new-build satellite deliveries were as follows:
Global Services & Support (GS&S) is engaged in the operations, maintenance, training, upgrades and logistics support functions for military platforms and operations. Included in this segment are the following activities: Integrated Logistics on platforms including AEW&C,
AH-64,
AV-8B,
C-17,
CH-47,
F-15,
F/A-18,
F-22,
GMD Operations and Support (O&S), KC-767 International Tanker and
V-22;
Maintenance, Modifications and Upgrades on platforms including
A-10,
B-1B,
B-2,
B-52,
C-32, C-40,
C-130,
E-4B,
E-6B,
KC-10,
KC-135,
QF-16, T-38
and VC-25; Training Systems and Services on platforms including AH-64, C-17, F-15,
F-16,
F/A-18, P-8A and
T-45;
and Defense and Government Services including the Infrastructure and Range Services, Log C2 and LogNEC programs.
Financial results for BDS' GS&S group were as follows:
GS&S revenues increased by 3% in 2012 and by 1% in 2011. The 2012 increase of $264 million is primarily due to higher volume
in several Integrated Logistics (IL) programs, including contracts to support Chinook and C-17 aircraft,
and higher Training Systems & Government Services (TSGS) revenues primarily related to the P-8A program.
GS&S operating earnings increased by 6% in 2012 primarily due to improved performance on several MM&U programs
and higher revenues on several IL programs. Net favorable cumulative contract catch-up adjustments were $67 million higher in 2012 than in 2011.
In the commercial aircraft market, BCC facilitates, arranges, structures and provides selective financing solutions
for Boeing's Commercial Airplanes customers. In the space and defense markets, BCC primarily arranges and structures financing solutions for Boeing's BDS government customers.
BCC's portfolio consists of equipment under operating leases, finance leases, notes and other receivables, assets held for sale or re-lease and investments.
BCC's customer financing and investment portfolio at December 31, 2012 totaled $4,066 million.
A substantial portion of BCC's portfolio is concentrated among certain U.S. commercial airline customers.
BCC's portfolio is also concentrated by varying degrees across Boeing aircraft product types
most notably out-of-production aircraft such as B717.
Revenues ('12): $81,698M +18.9% |
R&D ('12): $3,298M -15.8% |
Net Profit ('12): $3,900M -2.9% |
CAPEX ('12): $1,703M -0.6% |
Aerospace Sector:Major Diversified OEM |
Boeing Products:Commercial wide-body jet aircraft; Commercial narrow-body jet aircraft; Fighters; Bombers; Combat rotorcraft systems; Weapons and unmanned systems; Transport; Tanker aircraft; Rotorcraft and tilt-rotor aircraft systems; Airborne surveillance and reconnaissance aircraft; Command and control aircraft; Battle management aircraft; airborne anti-submarine aircraft; Network and tactical systems; Battle management systems; Intelligence and security systems; Missile defense systems; Space and intelligence systems; Satellites; Satellite launching vehicles; Space exploration; Financing solutions. |
Boeing's Major U.S. Defense Programs:
| A-10 |
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Boeing's Commercial Programs:| Boeing: 737NG, 747, 747-8, 767, 777, 787 | |
| Sales 2008-2012 | Net Income 2008-2012 | R&D Spending 2008-2012 | # Employees 2008-2012 |
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