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The Boeing Company Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: October 26, 2011 12:27PM
The Boeing Company (BA) filed Quarterly Report for the period ended 2011-09-30. Boeing Co. has a market cap of $47.99 billion; its shares were traded at around $64.75 with a P/E ratio of 15.3 and P/S ratio of 0.7. The dividend yield of Boeing Co. stocks is 2.6%. Boeing Co. had an annual average earning growth of 1.9% over the past 10 years.
Highlight of Business Operations:Revenues for the nine and three months ended September 30, 2011 increased by $1,424 million and $760 million or 3% and 4% compared with the same periods in 2010. Commercial Airplanes revenues increased by $1,826 million and $766 million or 8% and 9% primarily due to higher new airplane and commercial aviation services sales. Boeing Defense, Space & Security (BDS) revenues decreased by $273 million for the nine months and increased by $18 million for the three months compared with the same periods in the prior year. The nine month decrease was primarily due to lower revenues in the Network & Space Systems (N&SS) and Global Services & Support (GS&S) segments, partially offset by higher revenues in the Boeing Military Aircraft (BMA) segment. The three month increase was due to higher BMA revenues partially offset by lower revenues in the N&SS and GS&S segments.
Earnings from operations for the nine and three months ended September 30, 2011 increased by $379 million and $327 million compared with the same periods in 2010. Commercial Airplanes earnings from operations for the nine months ended September 30, 2011 increased by $135 million. This increase was primarily due to earnings from higher revenues on new airplane deliveries and commercial aviation services, partially offset by increases in research and development. Commercial Airplanes earnings from operations for the three months ended September 30, 2011 increased by $68 million. The increase was primarily due to earnings from higher revenues on new airplane deliveries and a reduction in research and development costs related to certifications of the 747-8 Freighter and 787-8, partially offset by increases in period costs associated with business growth. BDS earnings increased by $234 million and $140 million compared with the same periods in 2010. The increase for the nine months was primarily due to higher earnings in the BMA and N&SS segments. The increase for the three months was due to higher earnings in all three BDS segments. Unallocated items and eliminations changed by $242 million and $79 million reflecting higher pension and postretirement costs partially offset by lower share-based plan expense and deferred compensation costs.
The effective tax rates were 33.6% and 33.4% for the nine and three months ended September 30, 2011 and 38.8% and 32.7% for the same periods in the prior year. The decrease in the effective tax rate for the nine months as compared with the prior year was primarily due to an income tax charge of $150 million recorded during the first quarter of 2010 as a result of the Patient Protection and
BCCs customer financing and investment portfolio at September 30, 2011 decreased from December 31, 2010 due to normal portfolio run-off and asset sales, partially offset by the origination of notes receivable. At September 30, 2011 and December 31, 2010, BCC had $541 million and $583 million of assets that were held for sale or re-lease, of which $485 million and $28 million had either executed term sheets with deposits or firm contracts to be sold or placed on lease. Additionally, aircraft subject to leases with a carrying value of approximately $105 million are scheduled to be returned off lease in the next 12 months. These aircraft are being remarketed or we are seeking to have the leases extended.
During the three months ended September 30, 2011, proceeds from BCC borrowings amounted to $745 million and during the nine months ended September 30, 2011, we repaid $895 million of debt, including scheduled repayments of $794 million of debt held at BCC. The recorded balance of debt as of September 30, 2011 was $12,380 million, of which $1,603 million was classified as short-term. This includes $3,407 million of debt recorded at BCC, of which $834 million was classified as short-term.
Stocks Discussed: BA,