Boeing reports record revenue and backlog

Boeing Commercial Airplanes fourth-quarter revenue increased to $14.2bn and full-year revenue increased to a record $49.1bn on higher delivery volume. Fourth-quarter operating margin was 8.9% and full-year operating margin was 9.6%, both reflecting the dilutive impact of 787 and 747-8 deliveries and higher period costs partially offset by the higher volume and lower R&D. During the quarter, Commercial Airplanes achieved a five-per-month production rate on the 787 program and, as of year-end, had won over 1,000 firm orders for the 737 MAX since launch. The 737 program broke the company’s single-year record for both orders and deliveries in 2012. During the year, Commercial Airplanes delivered the first 747-8 Intercontinental, began major assembly on the 787-9 and successfully executed a total of five production rate increases. Commercial Airplanes booked 394 net orders during the quarter. Backlog remains strong with nearly 4,400 airplanes valued at a record $319bn. The company’s current 2013 financial guidance assumes no significant financial impact from the FAA directive. The guidance reflects continued strong core performance, generating an expected 5% increase in core earnings per share (non-GAAP).