Monday 21 October 2019
 
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777X PROGRAMME ON TRACK

Boeing delivered 57 737 MAX airplanes in the third quarter.

Boeing delivers 190 commercial jets worth $15bn in Q3

CHICAGO, October 26, 2018

The Boeing Company delivered a total of 190 commercial airplanes including 57 737 MAX airplanes during the third quarter of the year, amounting to relatively unchanged revenue of $15.3 billion, reflecting lower deliveries largely offset by mix.

Third-quarter operating margin increased to 13.2 per cent, reflecting higher 787 margin and strong operating performance on production programmes, partially offset by $112 million of cost growth on the KC-46 Tanker programme due to higher than expected effort to meet customer requirements to support delivery of the initial aircraft, as well as due to incremental delays in certification and testing.

The 777X programme remains on track for delivery in 2020 as the static test airplane was completed and moved into test setup and the first two flight test airplanes were in production.

Commercial Airplanes booked 171 net orders during the quarter, valued at $13 billion. The 787 programme has captured more than 100 orders in 2018 and nearly 1,400 orders since its launch. Backlog remains robust with more than 5,800 airplanes valued at $413 billion.

Commercial Airplanes revenue guidance is reaffirmed at between $59.5 and $60.5 billion and margin guidance is increased to between 12 per cent and 12.5 per cent from greater than 11.5 per cent on strong performance.

The aerospace company reported third-quarter revenue of $25.1 billion driven by higher defence volume and services growth.

GAAP (Generally Accepted Accounting Principles in the US) earnings per share increased to $4.07 and core earnings per share (non-GAAP) increased to $3.58 primarily driven by strong operating performance at Commercial Airplanes and a tax benefit related to a tax settlement ($0.71 per share).

Results also reflect charges related to planned investments in the newly awarded T-X Trainer and MQ-25 programmes ($0.93 per share). Boeing delivered strong operating cash flow of $4.6 billion, repurchased $2.5 billion of shares, and paid $1.0 billion of dividends.

The company's revenue guidance increased $1.0 billion to between $98.0 and $100.0 billion, driven by defence volume and services growth, inclusive of the KLX acquisition. Operating cash flow guidance is reaffirmed at $15.0 to $15.5 billion.

Full year GAAP earnings per share guidance is increased to between $16.90 and $17.10 from between $16.40 and $16.60 and core earnings per share (non-GAAP) guidance is increased to between $14.90 and $15.10 from between $14.30 and $14.50 driven by a lower-than-expected tax rate and improved performance at Commercial Airplanes.

"Our teams continued to perform at a high level during the quarter, driving solid operating performance and robust cash generation, and continuing to deliver on our One Boeing advantage by bringing the best of Boeing to our customers," said Boeing chairman, president and chief executive officer Dennis Muilenburg.

"During the quarter we captured important new defence business, winning and investing in the MQ-25 and T-X programmes and securing the MH-139 contract, clearly demonstrating the value Boeing brings to customers while positioning us well for future growth opportunities. Within the Commercial Airplanes business, the 777X static test airplane was completed and moved into test setup and the team's focus on execution across our production programmes continued to drive outstanding performance and strong operating margins.

“Our Global Services business continues to deliver on total lifecycle value to our customers, with key wins in the quarter including P-8 Poseidon training contracts for the U.S. Navy and Royal Australian Air Force and an order from GECAS for 20 737-800 Boeing Converted Freighters. Additionally, we began integrating new data analytics tools, powered by Boeing AnalytX, into all Boeing Defence Australia support contracts, enhancing its position as a leading fleet services provider in the region.

"This strong underlying performance, along with growth across our businesses we've seen throughout the year, give us confidence to raise our 2018 revenue and earnings guidance and reaffirm our operating cash flow guidance,” he added. – TradeArabia News Service




Tags: Boeing | defence | Q3 revenue | Commercial planes |

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