CHICAGO - For 2014, Boeing reported record sales of $90.8 billion, up five percent from sales of $86.6 billion in 2013. Net income for the year was $5.4 billion, up 19 percent from $4.6 billion in 2013. Backlog grew to a record $502 billion, including a record $152 billion of net orders during the year.
"Strong operating performance in the final quarter of 2014 propelled us to some of our best-ever results and sealed a fifth consecutive year of core operating earnings growth. By responding to strong demand with market-leading and proven products and capabilities, and delivering them more efficiently, we are strengthening a powerful business platform that is providing increased returns for our shareholders," said Boeing Chairman and Chief Executive Officer Jim McNerney.
"Our Commercial Airplanes business successfully increased production rates and set an industry record for annual deliveries while also growing its backlog to new highs on record new orders for the year. Our Defense, Space & Security team navigated a challenging market environment to achieve solid revenue and healthy margins while also winning significant new contracts," said McNerney.
Total company backlog at quarter-end was a record $502 billion, up from $490 billion at the beginning of the quarter, and included net orders for the quarter of $37 billion. Backlog is up $61 billion from prior year-end, reflecting $152 billion of net orders in 2014.
INDUSTRY SEGMENTS
Commercial Airplanes
Commercial Airplanes 2014 revenue increased 13 percent to a record $16.8 billion (2013: $14.7 billion). 2014 operating income was $6.4 billion (2013: $5.8 billion).
Fourth-quarter revenue increased 15 percent to a record $16.8 billion on higher delivery volume and mix.
During the quarter, the company began production on the fuselage stringers of the first 737 MAX airplane. The 737 program has won over 2,600 firm orders for the 737 MAX since launch. Also during the quarter, the company began final assembly of the 787-9 Dreamliner at the South Carolina facility and broke ground on the 777X composite centers in Everett and St. Louis.
Commercial Airplanes booked 432 net orders during the quarter with a record 1,432 orders in 2014. Backlog remains strong with nearly 5,800 airplanes valued at a record $440 billion.
Defense, Space & Security
Defense, Space & Security's 2014 revneue was $30.9 billion, down 7 percent from $33.2 billion in 2013. Operating income for the year was $3.1 billion (2013: $3.2 billion)
Defense, Space & Security's fourth-quarter revenue was $7.6 billion (2013: $8.8 billion).
Boeing Military Aircraft (BMA) fourth-quarter revenue was $3.0 billion, reflecting lower planned F-15 and C-17 deliveries. Operating margin increased to 12.3 percent, reflecting strong operating performance. During the quarter, BMA completed the first flight of the 767-2C test aircraft for the KC-46 tanker program and Congress approved funding for 15 EA-18G Growlers.
Network & Space Systems (N&SS) fourth-quarter revenue was $2.2 billion, reflecting lower government satellite volume, and operating margin was 8.8 percent. During the quarter, N&SS completed the first two all-electric propulsion 702SP satellites.
Global Services & Support (GS&S) fourth-quarter revenue increased to $2.4 billion on higher volume in maintenance, modification and upgrades (MM&U). Operating margin increased to 14.9 percent reflecting strong operating performance across the segment and mix within MM&U. During the quarter, GS&S was awarded a 25-year order from the Australian government to train navy and army rotary wing aircrew.
Backlog at Defense, Space & Security was $62 billion, of which 36 percent represents orders with international customers.
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