BOEING has announced that its 2007 net income rose by 84 per cent year on year to a record US$4.1 billion, up from $2.2 billion in 2006.
Surging earnings were attributed to higher commercial airplane deliveries, strong growth in defence spending and company-wide productivity improvements
Revenue for 2007 rose eight per cent over the previous year to $66.4 billion, while the operating margin expanded to 8.8 per cent driven by double-digit margins in its commercial and defence businesses, a company statement said.
Fourth-quarter revenue held at $17.5 billion, while the operating margin increased to 8.7 per cent on the back of margin expansion in its core businesses.
Boeing chairman and CEO Jim McNerney said: "We added substantial backlog, made major efficiency gains and executed well our production and services programmes," he said.
"Despite some development programme challenges, we are a strong company growing stronger, and we expect continued improvement in our financial results in 2008 and beyond."
Full-year operating cash flow grew 28 per cent to $9.6 billion, reflecting strong operating earnings, higher aircraft orders and a decrease in working capital requirements.
Total company backlog at year-end reached a record $327 billion, up 31 per cent in the last 12 months driven by commercial airplane orders and defence programme wins.
Cash and investments in marketable securities totalled $12.1 billion at year-end, up 30 per cent from the same period last year and down slightly from the end of the third quarter.
Segment results show that Boeing Commercial Airplanes's (BCA) fourth-quarter revenues increased 17 per cent over 2006 to $8.9 billion on a nine per cent increase in deliveries, to 112 airplanes, and higher commercial aviation services revenue. Operating earnings grew 46 per cent to $973 million on favourable product mix, and operating margins expanded to 11.0 per cent. The company said that margins in the latest quarter primarily reflect higher operating leverage and expanding productivity.
For the full year, BCA revenues rose 17 per cent to $33.4 billion on an 11 per cent increase in deliveries and higher services volume. Operating earnings grew 31 per cent to $3.6 billion, while margins expanded to 10.7 per cent, owing to higher delivery volume and services sales, partially offset by increased research and development spending.
BCA booked 520 gross orders during the quarter and 1,423 during the year. Contractual backlog rose to $255 billion, increasing 46 per cent year on year to more than seven times BCA's annual revenues.
Boeing said it continues to address challenges associated with assembly of the first Dreamliner, including start-up issues in its factory and in its extended global supply chain. The company expects the first flight at the end of the second quarter with first delivery in early 2009.
Boeing's 2008 revenue guidance is now between $67 billion and $68 billion, down from between $67.5 billion and $68.5 billion due to the 787 delay.
Commercial Airplanes now expects to deliver between 475 and 480 airplanes in 2008 and is sold out, down slightly from 480 to 490 airplanes to reflect the rescheduling of initial 787 deliveries into 2009.
BCA revenue guidance for 2008 is now $34.5 billion to $35 billion, down from $35 billion to $36 billion, and operating margin guidance is increased to approximately 11.5 per cent from approximately 11 per cent as productivity gains are being realised ahead of earlier plans, the release added.
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