CHICAGO - For the second quarter of 2017, Boeing reported sales of $22.7 billion, down 8 percent from sales of $24.7 billion in the second quarter of 2016. Net income for the quarter was $1.8 billion compared to a loss of $234 million a year ago.
"In the second quarter, we added to our large and diverse order backlog with key wins in commercial airplanes, defense, space and services, while achieving important milestones such as delivering the first 737 MAX airplane, flying the second production-ready T-X trainer aircraft, and conducting a successful Ground-based Midcourse Defense intercept test," said Chairman, President and Chief Executive Officer Dennis Muilenburg.
"As we look to the second half of the year, our teams are focused on accelerating productivity, quality and safety improvements across the company, while completing key development efforts and delivering better capabilities and economics to our customers."
Total company backlog at quarter-end was $482 billion, up from $480 billion at the beginning of the quarter, and included net orders for the quarter of $27 billion.
INDUSTRY SEGMENTS
Commercial Airplanes
Commercial Airplanes second-quarter revenue was $15.7 billion (2Q16: $17.4 billion) on planned production rates and timing of deliveries. Second-quarter operating income was $1.6 billion compared to a loss of $973 million in the second quarter of 2016. Operating margin was 10.0 percent, reflecting solid execution.
During the quarter, Commercial Airplanes delivered the first 737 MAX 8 aircraft and announced the launch of the 737 MAX 10. Demand continues to be healthy with 571 incremental orders and commitments announced at the Paris Air Show, including 56 for widebody aircraft and 361 for the launch of the 737 MAX 10. Also at the Paris Air Show, a number of commercial service agreements were announced that provide further growth opportunity for Boeing Global Services.
Commercial Airplanes booked 183 net orders during the quarter (2Q16: 199). Backlog remains robust with more than 5,700 airplanes valued at $424 billion.
Defense, Space & Security
Defense, Space & Security second-quarter revenue was $6.9 billion (2Q16: 7.2 billion). Second-quarter operating income was $890 million compared to $593 million in the second quarter of 2016. Second-quarter operating margin increased to 12.9 percent, reflecting increased productivity in all three segments.
Boeing Military Aircraft (BMA) second-quarter revenue was $2.9 billion (2Q16:$3.0 billion), reflecting lower planned C-17 deliveries, and operating margin increased to 13.2 percent on improved performance. During the quarter, BMA was awarded a contract for the remanufacture of 38 AH-64E Apache helicopters for the United Kingdom, and the second production-ready T-X aircraft completed first flight.
Network & Space Systems (N&SS) second-quarter revenue was $1.7 billion (2Q16:$1.8 billion), reflecting timing of satellite volume. Operating margin increased to 9.1 percent reflecting improved performance. During the quarter, N&SS was awarded a contract from the Missile Defense Agency for Redesigned Kill Vehicle Development.
Global Services & Support (GS&S) second-quarter revenue was $2.3 billion (2Q16:$2.4 billion), reflecting timing of contracts. Operating margin increased to 15.4 percent reflecting strong performance. During the quarter, GS&S was awarded a contract from the Defense Logistics Agency to support the F-15 fleet, which will be carried out by Boeing Global Services.
Backlog at Defense, Space & Security was $58 billion, of which 37 percent represents orders from international customers.
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