CHICAGO - For the first quarter of 2014, Boeing reported that revenues rose 8 percent to $20.5 billion from $18.9 billion in the first quarter of 2013. Net income for the quarter was down 13 percent to $965 million from $1.11 billion in the year ago period. Total company backlog at quarter-end was a $440 billion, down slightly from the beginning of the year, and included net orders for the quarter of $19 billion.
"Disciplined execution across our production and development programs produced strong first quarter results," said Boeing Chairman and Chief Executive Officer Jim McNerney. "We measurably increased revenue, core operating earnings and cash flow, and expanded core operating margins. This financial and operational strength enabled the return of more than $3 billion to shareholders in the quarter through share repurchase and an increased dividend, even as we continued to invest in our future."
"Our outlook for the full year remains positive on the strength of demand for our fuel-efficient new commercial airplanes, our solid position in global defense, space and security markets, and our enterprise focus on meeting customer commitments, improving productivity and profitably delivering the growth in our sizable backlog," McNerney said.
INDUSTRY SEGMENTS
Boeing Commercial Airplanes
Boeing Commercial Airplanes first-quarter revenue increased to $12.7 billion (2013: $10.7 billion) on higher 787 and 737 deliveries. First-quarter operating income was $1.5 billion compared to $1.2 billion a year ago.
During the quarter, the 787 program reached a 10 per month production rate and completed preliminary design review on the 787-10. The company selected the Everett, Washington site as the location for a new composite wing center for the 777X. In April, the 737 program reached a production rate of 42 per month.
Commercial Airplanes booked 235 net orders during the quarter. Backlog remains strong with over 5,100 airplanes valued at $374 billion.
Boeing Defense, Space & Security
Boeing Defense, Space & Security's first-quarter revenue was $7.6 billion, down 6 percent from $8.1 billion in the first quarter of 2012. Operating income for the period was $778 million, also down 6 percent from the $832 million reported last year.
Boeing Military Aircraft (BMA) first-quarter revenue declined to $3.5 billion (2013: $4.0 billion), as the first quarter of 2013 included revenue associated with F-15 development milestones and due to fewer P-8 deliveries in the first quarter of 2014. Operating margin was 9.6 percent, reflecting strong performance offset by a previously announced C-17 inventory-related charge. During the quarter, BMA was awarded a contract for 16 P-8A Poseidon aircraft from the U.S. Navy and a contract for 82 Apache Block III helicopters from the U.S. Army.
Network & Space Systems (N&SS) first-quarter revenue was $1.9 billion (2013: $2.0 billion), reflecting lower satellites volume, and operating margin increased to 9.0 percent on strong performance. During the quarter, N&SS completed on-orbit testing of the first Inmarsat-5 satellite.
Global Services & Support (GS&S) first-quarter revenue increased to $2.3 billion ($2.2 billion), reflecting higher volume in maintenance, modifications and upgrades. Operating margin increased to 12.1 percent on improved performance in integrated logistics. During the quarter, GS&S was awarded a contract to provide maintenance training devices for the U.S. Navy's P-8A Poseidon aircraft.
Backlog at Defense, Space & Security was $66 billion, of which 35 percent represents orders with international customers.
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