Strong start to 2012

We knew 2012 had the potential to be a banner year for Boeing—and today’s financial numbers show we’re off to a strong start. First-quarter net income rose to $1.22 per share on revenue of $19.4 billion.

I’ve touted 2012 as the Year of the MAX and that’s also shaping up to be the case. With 301 firm orders for the airplane in the first-quarter, the 737 MAX has helped to grow our record backlog of more than 4,000 airplanes valued at a record $308 billion.

So how did the quarter stack up against the competition? We booked 412 net orders compared to Airbus’ 90. We also delivered 137 airplanes compared to Airbus’ 131, an increase of more than 30 percent compared to this time last year.

Another great piece of news today. We contractually delivered the first 747-8 Intercontinental to an airline customer—our launch customer Lufthansa. We’ll celebrate the delivery on May 1 in Everett before the airplane heads to Germany for a celebration there on May 2. This is a huge milestone for the 747-8 program and I send my congratulations to the entire team as well as Lufthansa. You can see more photos here.

image/photo

Lufthansa’s 747-8 Intercontinental during its first flight.

As always, I think our story is best told in video. I invite you to check out the clip below showcasing all of the accomplishments from the first-quarter, followed by a brief program by program summary.

737

In January the program delivered the first 737 produced at the new 35-a-month rate — and also rolled out the 35th airplane at that new rate. In the largest-ever Boeing order from a European airline, Norwegian Air Shuttle ordered 22 Next-Generation 737-800s and 100 737 MAX airplanes, making Norwegian the first carrier in Europe to order the MAX. In February Boeing and Lion Air finalized the largest commercial order in Boeing history — for 201 737 MAXs and 29 Next-Generation 737-900ERs valued at $22.4 billion. The MAX program entered the final phase of wind-tunnel testing in February with low-speed tests at the QinetiQ facility in Farnborough, England, followed in March by high-speed wind tunnel testing at the Boeing Transonic Wind Tunnel in Seattle.

747

On Feb. 28 we delivered the first VIP 747-8 Intercontinental to an undisclosed customer. The program also delivered five freighters in the first quarter, including the first 747-8 Freighters for Korean Air and AirBridgeCargo Airlines. The Freighters continue to perform exceptionally well in service with better-than-plan dispatch reliability and fuel burn. Preparations are under way for a mid-year rate increase from 1.5 per month to two per month.

767

The program delivered three 767-300 Freighters and four 767-300ER passenger airplanes including the 96th - and final — 767 on order for All Nippon Airways, a 767 customer for more than 30 years. The program also received an order for four 767-300ERs for delivery to Air Astana, a new direct customer for the 767. On Feb. 24, Boeing marked the first anniversary of winning the U.S. Air Force contract to build the KC-46A aerial refueling tanker, which uses the 767-2C freighter as its platform. In the past year, the tanker program has reached several key design and development milestones on time or ahead of schedule. Boeing is on track to complete a Preliminary Design Review with the Air Force, a key milestone in the Tanker’s development, by the end of April.

777

On March 2 more than 5,000 employees, suppliers, customers and government officials celebrated completion of the 1,000th 777 - a 777-300ER that was delivered to Emirates on March 20. The program reached the 1,000 mark in 16 years - faster than any other twin-aisle airplane. In addition, the 777 engineering team achieved a remarkable 98 percent on-time rate for release of engineering work. Readers of Business Traveler magazine voted the 777 “Best Aircraft Type” for the fourth year in a row and the 777-300ER won the 2012 Aircraft of the Year award, presented by Aviation News.

787

The program delivered five Dreamliners: three to launch customer ANA and two to Japan Airlines - the first airline to take a 787 powered by GE’s GEnx engine. Those deliveries brought the fleet total to eight. The worldwide Dream Tour generated enthusiasm with stops in Singapore, Mexico, Chile, Canada, Thailand, Ireland and multiple cities across the U.S. The team is making great progress defining the 787-9.

Boeing South Carolina

Boeing South Carolina’s first production airplane (LN 46) moved into its final position, where it will go through interiors installation and production test before rolling out to the flight line this Friday. Delivery is still on track for mid-2012.

Commercial Aviation Services

At the Singapore Airshow in February, CAS launched the Boeing Edge, a new identify for the services, support and solutions Boeing offers its customers. Norwegian Air Shuttle signed a 12-year agreement to extend GoldCare, a comprehensive fleet maintenance and engineering management service, to the airline’s planned fleet of six 787 Dreamliners, and Singapore Airlines Cargo signed up to cover its fleet of 13 747-400 freighters. CAS also signed an agreement with Korean Air to establish a new training center and to continue providing all of the airline’s Boeing flight and operational training through 2020.

Comments (9)

James Baloun (Palo Alto, California, USA):

Hmm, all quiet on the western front. Maybe they are busy with creative bookkeeping and squirreling away orders for a big performance at Farnborough?

Varun G. (Chicago IL):

Congrats Randy, and Congrats to all the teams at Boeing.Looks like this year we are on track to beat Airbus:)It has been truly a fantastic first quarter for Boeing with deliveries and orders. Boeing will continue to to well in the future with an updated 737,747,777, and brand new 787. I really am looking forward to seeing one of these birds in the air. After watching the 787 program with its accomplishments and struggles over the past few years it is fantastic seeing this beautiful plane being delivered across the world, making more routes profitable for airlines, and increasing passenger comfort. Randy, I have heard people say that the current Dreamliners are not arriving with the technology that dampens turbulence? If not, when do you think that we will be seeing those on production 787's? Once again, congrats to all the teams at Boeing, and I look forward to a bright future ahead to an amazing company.

James Baloun (Palo Alto, California, USA):

A recent news article mentioned Boeing is studying where to build the 777x wing. It occurred to me that the NASA shuttle carrier aircraft could easily carry the wings. NASA is almost done with the pair of strong shouldered 747s. Little modifications necessary, they are ready to go. All you need is a support frame and some fairings. Two more Dreamlifters added to the fleet. NASA was going to use them to support the SOFIA operation, but I am sure Boeing and NASA could come to an agreement.

Andrew Boydston (Boise, ID USA):

Loved the video. I thought while watching it. "Boeing Builds Opportunity, now World go out and get it."

Russel Ahmed (Dhaka, Bangladesh):

If sky is the limit, 737 is the worship of eternity. If rainbow is the color of 7, 747-8 is innovation of true beauty of rainbow. If perfection is the tune of aristocracy, 777 is the 6 riffs of panaromic guitar tune of Boeing. If Piano and Guitar creates the symphony of madness, 787 is ulmate fusion of excellence. Truly BOEING creates the ultimate fragrance that the sky always loves to smell. ROCK ON COMMERCIAL AVIATION SERVICES OF BOEING.

Rsa:

Great job Boeing, good luck

Norman (Long Beach, CA):

The 737 MAX looks very good in it's order sheet with a lot of potential interest in those observing. I think the 737 MAX will do well and exceed in the orders list with the A320NEO, a plane now in need of a new name as the NEO will be the only option when it is in production and the older family of A320 is retired from the production scene.

For a plane first delivered in the mid-nineties the 777 still has a bright future now and ahead, almost every week somebody orders the 777-300ER, who would have known that the 777-300ER would have soled as well as it is doing when the plane was initially put in production. The growing world market and now the need to replace older 747-400s has put value on the ever successful 777-300ER. The potential of the proposed 777-8X and 9X will fill the 777 production line well for decades to come.

With JAL now taking deliveries of the 787, it won't be long at all until other ordering airlines will get their 787s. The 787-9X is a great natural add on to the 787-8 with the range that no other airliner of it's size has. A potential 787-10X with the range of the 777-200ER or more will make a fine replacement. Airlines that still fly the 777-200ER in significant numbers like American, Delta, United, Singapore Airlines, British Airways and others may find interest in a stretched and enlarged winged 787-10X.

Thiagarajan K Rengasamy (Kuala Lumpur, Malaysia):

Video is good and everything is so good..Top Marks Boeing for superb performance!

Toby Scott (Orlando):

The tide seems to be finally turning in Boeing's favor after years being "2nd". With deliveries of the 787 and 747-8I finally underway and plans/orders for the MAX coming in month by month, this is most definitely going to be Boeing's year, re-taking the top spot once again. The 777 just gets better and better.

My only concern is the fact that I have read in the news that some airlines who were Boeing exclusive operators are now beginning to split orders between the top 2, Norwegian Air Shuttle being the most recent and AA last year. Thoughts anyone?

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