Second quarter reflections

It’s no secret that Boeing faced some challenges in the second quarter of this year. But thanks to a true team effort across the entire company, we came out on the other side even stronger.

Today, we reported second quarter core earnings per share (non-GAAP) increased 13 percent to $1.67, driven by strong performance across the company’s businesses. Core earnings per share guidance increased to between $6.20 and $6.40. Revenue increased 9 percent to $21.8 billion reflecting higher deliveries on the 787 and 737 programs.

Commercial Airplanes booked 481 net orders during the quarter. Backlog remains strong with nearly 4,800 airplanes valued at a record $339 billion. We now expect to deliver between 635 and 645 airplanes by the end of the year, with 787 deliveries expected to be greater than 60.

As I always do, I want to share some of the accomplishments made across our programs during the second quarter. Here they are in photos—and a must-see video.

737

•Program delivers 116 airplanes - a record for a single quarter.

•Boeing and Southwest Airlines announce the launch of the 737 MAX 7.

•First delivery of the 737 MAX 8 - to launch customer Southwest Airlines - is moved up one quarter, to the third quarter 2017.

•In Boeing’s largest-ever airplane order from a European airline, Ryanair finalizes an order for 175 Next-Generation 737-800 airplanes.

image/photo

Boeing Commercial Airplanes President & CEO Ray Conner greets Ryanair’s Michael O’Leary at the Paris Air Show.

•Turkish Airlines finalizes its largest order for Boeing airplanes: 40 737 MAX 8s, 10 737 MAX 9s and 20 Next-Generation 737-800s. The order includes options for an additional 25 737 MAX 8s.

•Aircraft lesser CIT Aerospace orders 30 737 MAX 8s.

•CFM International’s LEAP-1B engine for the 737 MAX passes “engine design freeze,” a milestone that allows CFM engineers to begin releasing design drawings for the engine.

747

•Lufthansa, launch customer for the 747-8 Intercontinental, opens new Intercontinental routes from Frankfurt to Hong Kong and Miami.

•Certification flight testing begins on a package of 747 performance improvements designed to improve fuel efficiency by 1.8 percent and upgrade the flight management computer.

image/photo

This 747-8 Intercontinental takes to the skies to start testing a performance improvement package.

•Korean Air announces its intention to buy five 747-8 Intercontinentals.

•Boeing delivers its 50th 747-8 - an Intercontinental - to Lufthansa, launch customer for the passenger version.

•Six 747s are delivered in the quarter.

767

•Assembly begins on the KC-46A aerial refueling tanker as the 767 line in Everett loads the first wing spar.

image/photo

A huge moment as the spar load begins for the KC-46A.

•US Air Force gives the go-ahead for critical design review of the KC-46A tanker to take place in July, noting that Boeing remains on track to complete all contractual entrance requirements prior to the review and meet contractual requirements for completing the review by the fourth quarter.

•A total of eight 767s are delivered during the second quarter.

777

•Operating at a 100-per-year production rate, the program delivers its 1,100th airplane, a freighter, to Etihad Airways.

image/photo

Another milestone for the 777 program with its 1,100th delivery.

•Korean Air agrees to buy six 777-300ERs.

•Qatar Airways announces it will buy nine 777-300ERs, including two airplanes previously attributed to an unidentified customer.

•Program delivers 23 airplanes and books 10 net orders.

787

•Regulatory agencies worldwide approve an enhanced battery system, paving the way for the Dreamliner’s return to service. More than 300 Aircraft on Ground personnel from CAS and Airplane Programs work to retrofit existing airplanes.

•Boeing launches the 787-10, with 102 orders and commitments from five customers.

•A 787 in Air India livery performs daily aerial displays at the Paris Air Show - a first for the Dreamliner. A second 787, owned by Qatar Airways, is on static display.

image/photo

A 787 for Air India looked gorgeous in the flying display at Paris.

•787-9 begins final assembly in Everett. The first airplanes are progressing through final assembly and production remains on track for first delivery to Air New Zealand in mid-2014.

image/photo

The 787-9 is sporting a cool new livery.

•Boeing delivers the first 787s to China Southern, British Airways, Thomson Airways and International Lease Finance Corporation (for operation by Norwegian).

•The 100th Dreamliner is produced.

•40 net orders are booked, and 16 airplanes are delivered in the quarter.

Commercial Aviation Services

•Aeroflot takes delivery of its fourth 777-300ER equipped with Airplane Health Management, which uses real-time data to improve maintenance and operational efficiency and reduce flight schedule interruptions.

•Boeing Flight Services announces it will add and reposition flight training devices within its global network, adding new capabilities and better customer support for training on Next-Generation 737, 777 and 787 airplanes.

image/photo

Some of the simulators we use for flight training.

•Boeing Shanghai wins a contract to convert three passenger 737-400s to freighters for Yangtze River Express/Hainan Airlines to support growing Chinese demand for air freight.

•Boeing wins US regulatory approval to provide 787 customers with advanced navigation procedures designed to increase fuel and emissions efficiency and reduce airport congestion.

Comments (6)

Nick (Orcas, WA):

Though you delivered a record number of aircraft this quarter, at current production rates and your stated backlog figure, you have an over 10 year backlog. Therefore, it without substantial production rate increases for at least the 787 and 737, you will be losing sales to competitors because customers can't afford to wait for deliveries from Boeing. While 787 production is still ramping up, sales of the new 10 model and additional sales of the 8 and 9 will be affected by the long wait to get to the front of the production queue. It's a nice problem to have, but a problem none-the-less.

Jean Gonzalez (Inwood, WV, USA):

Very proud of you guys, excellent !!! hope to join you guys in the future!!

tim (Racine, WI):

Boeing is amazing, great 2nd Q report!

Andrew (Boise, ID USA):

Massive, summary notes on "Your Journal", as as the top comment, the competitors books are full as well and Boeing sees the advantage coming from increased productivity will open up delivery slots and sales opportunity for all its programs. The analytical financial people see the 20 billion dollar line in the sand for the 787 quickly approaching with the -9 all ready figured in the number. The -10 is not part of that original estimate of 20 billion. However productions efficiencies and lessons learned are quickly shutting off an expansion of manufacturing cost on the 787. Simply stated, the 1.7 billion remaining in the 20 billion program cost estimate will come close to that estimate. A top down vision and a bottom up execution is making it possible. Congratulation on these journal notes and to all at Boeing.

Edward (Memphis):

Yes! Great job to the Boeing team. We are rooting for you all the way. I enjoy the updates.

Norman (Long Beach, CA):

The best thing about this second quarter was how fast the orderes came for the newly launched 787-10 with 102 ordered right away, 100 777s per year is not bed either.

Post a comment

We welcome your comments. However all comments are moderated and may not post immediately. Offensive or off-topic comments will not be posted. We will not treat any comments you submit as confidential information. Please do not submit comments that contain any confidential information belonging to anyone else.

By submitting a comment to Randy's Journal, you agree to our site terms and privacy policy, and to having your name displayed with your comment. All or part of your comment may be posted or cited in the blog. Your name and personal information will not be used for any other purpose, and we will not publish your e-mail address.

 

More posts