Boeing Reports Record 2018 Results and Provides 2019 Guidance

At quarter-end, Boeing Capital's net portfolio balance was $2.8 billion. Revenue in other unallocated items and eliminations decreased primarily due to the timing of eliminations for intercompany aircraft deliveries and the 2017 sale of aircraft previously leased to customers. The change in earnings from other unallocated items and eliminations is primarily due to timing of expense allocations. The effective tax rate for the fourth quarter increased from the same period in the prior year primarily due to the favorable impacts from the enactment of the Tax Cuts and Jobs Act recorded in the fourth quarter of 2017.

Outlook

Effective in the first quarter of 2019, the Company is making a change to the accounting for military derivative aircraft. Revenues and costs associated with military derivative aircraft were previously reported in the Commercial Airplanes and Defense, Space & Security segments. Beginning in 2019, all revenues and costs associated with military derivative aircraft will be reported in the Defense, Space & Security segment. An additional exhibit is included on page 15 with restated 2018 results adjusted for the change in accounting for military derivative aircraft as well as the realignment of certain programs between Global Services and Defense, Space & Security. The Company has provided this comparable information in the exhibit and below to help investors understand the 2019 financial outlook (Table 8).


Table 8. 2019 Financial Outlook		Restated	As Reported
(Dollars in Billions, except per share data)	2019	2018 Results	2018 Results

The Boeing Company
Revenue	$109.5 - 111.5

GAAP Earnings Per Share	$21.90 - 22.10
Core Earnings Per Share*	$19.90 - 20.10

Operating Cash Flow	$17.0 - $17.5B

Commercial Airplanes
Deliveries ¹	895 - 905
Revenue	$64.5 - 65.5	$57.5	$60.7
Operating Margin	14.5% - 15.0%	13.6%	13.0%

Defense, Space & Security
Revenue	$26.5 - 27.5	$26.4	$23.2
Operating Margin	>11.0%	6.3%	6.9%

Global Services
Revenue	$18.5 - 19.0	$17.1	$17.0
Operating Margin	>15.0%	14.9%	14.8%

Boeing Capital Portfolio Size	Stable
Research & Development	~$4.1
Capital Expenditures	~$2.3
Pension Expense ²	~$0.0
Effective Tax Rate	~16%

*Non-GAAP measure; complete definitions of Boeing's non-GAAP measures are on page 6, "Non-GAAP Measures Disclosures."

¹ Continues to include intercompany deliveries related to military derivative aircraft

² Approximately $1.1 billion of pension expense is expected to be allocated to the business segments

« Previous Page 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 Next Page »