Beating expectations... again

After posting strong first-quarter earnings, Boeing has once again beaten Wall Street expectations in the second quarter of 2011. A lot of that success was driven by Commercial Airplanes where we’re living through one of the most exciting and historic times in the company’s history. This morning, we announced second-quarter net income of $0.9 billion, or $1.25 per share, on revenue of $16.5 billion. We had 65 net orders for airplanes, increased our deliveries and grew our aviation services business.

During the quarter, our 787 test fleet surpassed 4,180 hours in the air (we’re currently at more than 4,500 hours). Function & Reliability testing and extended operations (ETOPS) testing continues (we’re about 2/3 complete), we’re nearing completion of our flight test activities, and transitioning into the final stages of the certification process, which is expected to be complete by the end of August.

Meanwhile, the 747-8 test fleet topped 3,400 hours. The second Intercontinental joined the flight-test fleet, and two of the Freighter test airplanes transitioned to San Antonio for refurbishment. And who could forget the 747-8 Freighter’s history-making biofuel flight as it crossed the Atlantic for the Paris Air Show. By the time the third quarter of this year ends, we expect certification and delivery of both the 787 Dreamliner and 747-8 Freighter.

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A great second-quarter for the 787 and 747-8 programs.

The news that we’ve decided to bring a new engine 737 to the market (pending launch approval from our board of directors) dominated the headlines last week. But our Next-Generation 737, which we’re always improving, continued to make waves of its own—43 gross orders for a total of 141 in the first half of the year. Things are still rolling along to raise our 737 production rate from 31.5 airplanes per month to 35 by early 2012, 38 a year later, and 42 per month in 2014.

The 777 team was hard at work making seven airplanes a month—up from five—and began production on its first freighter to be designed and built in nine months. For the first half of 2011, gross orders for the 777 stand at 72.

The 767 team increased its rate to two airplanes a month, up from 1.5 a month during first quarter. The program also received six orders for the 767-300ER.

Finally, the Commercial Aviation Services (CAS) team announced a partnership with Mitsubishi Aircraft Corporation to provide customer around-the-clock support services for the Mitsubishi Regional Jet family of commercial airplanes. We also received an order from Thai Airways for two 747-400 passenger-to-freighter conversions and saw the first ANA crews complete 787 pilot training at the Seattle Flight Services campus.

After a great second-quarter, we now set our sights on delivering to our customers and ramping up production. We’re expecting to deliver 485 to 495 planes this year, with 25 to 30 being 787s and 747-8s, weighted more toward 747-8 deliveries. And thanks to the American Airlines commitment for the new engine 737, we can expect a lot more orders as the year goes on.

There’s obviously a lot going on at Boeing right now— and I’m happy to take you along for the ride. Check out all our accomplishments from the past quarter in the special highlights video below.

Comments (2)

Chris C (South Africa):

The LEAP-X 737NG will be a truly great success when launched, however, I'm very hopeful that the 737 will get a flight-deck make-over that is inspired by the 787 Dreamliner.

Norman (Long Beach, California, United States ):

This is not a bad time for Boeing with the launch of the fourth generation of 737 with American Airlines and the 787 about ready to go into service and the 747-8 not far behind.

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