The Boeing Company reported first-quarter net income rose to $0.9bn, up 58% compared to the same period last year, on revenue of $19.4bn up 30% compared to the previous year. Earnings per share rose 56%, reflecting continued strong core performance across the company’s businesses, which more than offset higher pension expense. The results also include an increase in earnings of $0.11 per share related to a reduction in a litigation-related reserve. Earnings per share guidance for 2012 increased to between $4.15 and $4.35 to incorporate the reduction in the litigation-related reserve. The company reaffirmed its 2012 revenue and operating cash flow outlook. Boeing’s quarterly operating cash flow was $0.8bn, with higher commercial airplane deliveries, increased orders and strong operating performance more than offsetting continued investment in the 787 program. Free cash flow was $0.4bn in the quarter.
Boeing Commercial Airplanes first-quarter revenue increased by 54% to $10.9bn on higher delivery volume and mix. Operating margin was 9.9%, reflecting the higher deliveries and lower R&D partially offset by higher period costs and the dilutive impact of 787 and 747-8 deliveries. During the quarter, the first two GEnx-powered 787s were delivered. The first 747-8 Intercontinental VIP airplane was also delivered during the quarter. Commercial Airplanes booked 412 net orders during the quarter, including 301 firm orders for the 737 MAX. Backlog remains strong with more than 4,000 airplanes valued at a record $308bn.
