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BOEING REPORTS 1992 FOURTH-QUARTER AND FULL-YEAR RESULTS

 Year Ended Dec. 31, Fourth Quarter
 1992 1991 1992 1991
 (Dollars in millions, except per-share data)
 Sales $30,184 $29,314 $7,497 $7,753
 Net Earnings:
 Before accounting change $ 1,635 $ 1,567 $ 377 $ 403
 After SFAS No. 106
 accounting change, but
 before transition obligation
 adjustment $ 1,554 $ 357
 After SFAS No. 106
 transition obligation
 adjustment $ 552 $ 357
 Earnings per Share:
 Before accounting change $ 4.81 $ 4.56 $ 1.11 $ 1.17
 After SFAS No. 106
 accounting change, but
 before transition obligation
 adjustment $ 4.57 $ 1.05
 After SFAS No. 106 transition
 obligation adjustment $ 1.62 $ 1.05
 Average shares (millions) 340.2 343.4 339.4 342.7
 SEATTLE Jan. 26 /PRNewswire/ -- Sales of $30.2 billion and net earnings, before adjustment for an accounting change, of $1,635 million or $4.81 per share for the year 1992 were reported by Frank Shrontz, Boeing (NYSE: BA) chairman and chief executive officer. Comparable figures for 1991 were sales of $29.3 billion and net earnings of $1,567 million or $4.56 per share. After restatement for the effect of the Statement of Financial Accounting Standards (SFAS) No. 106 accounting change for retiree health care, including a one-time cumulative adjustment of $1,002 million, net earnings and net earnings per share for 1992 were $552 million and $1.62, respectively.
 Sales for the fourth quarter of 1992 were $7.5 billion with net earnings before the accounting change of $377 million or $1.11 per share, compared with 1991 fourth quarter sales of $7.8 billion with earnings of $403 million or $1.17 per share. After adjustment for the accounting change, 1992 fourth quarter net earnings were $357 million or $1.05 per share.
 The SFAS No. 106 one-time cumulative adjustment of $1,002 million represented retiree health care costs attributed to prior years. The company elected to record a one-time cumulative adjustment rather than amortize the transition adjustment over the current and future years. Therefore, first quarter 1992 results have been restated in accordance with SFAS No. 106. Additionally, the second and third quarters were restated to reflect the added cost to the current periods resulting from the application of the new accounting standard.
 Shrontz noted that the increase in 1992 net earnings before the accounting change was primarily attributable to increased commercial aircraft sales and improved operating performance, particularly in the defense and space business segment. These factors, however, were partially offset by higher research and development expense, principally for the 777 program, lower interest income, and a higher effective federal income tax rate.
 Total new announced orders for commercial jet transports for the year 1992 were valued at $17.8 billion compared to $20.6 billion for 1991, maintaining Boeing's market share in the 60 percent range. Boeing's commercial jet transport market share based on value of 1992 deliveries was also approximately 60 percent. Announced commercial orders during the fourth quarter totaled 85 aircraft valued at $6.3 billion. Approximately 60 percent of the fourth quarter announced order value was from International Lease Finance Corp., with the balance from nine non-U.S. airlines.
 Subsequent to the fourth quarter, United Parcel Service announced an order for 30 767-300 freighters plus 30 options. Flight testing of the new 767-300 freighter will begin in the second quarter of 1995, with first delivery in October 1995.
 Shrontz noted that the weak economic environment in most areas of the world continues to result in mixed performance by the world's airlines. Continued operating losses principally due to lower than expected traffic volume or revenue yields have contributed to many airlines considering deferral of equipment and other capital expenditures until later periods. The company has agreed to reschedule some delivery positions and is negotiating additional deferral requests. As a consequence, there will be further planned reductions in aircraft production rates to be effective between the third quarter of 1993 and the second quarter of 1994. Commercial jet transport deliveries for 1993 are now projected to total approximately 340 units, compared with 441 in 1992.
 Although there is downward pressure on commercial production rates in the near term, the company remains optimistic about the longer-term global market demand for commercial jet transports and Boeing's ability to maintain favorable market share. Shrontz noted the company is well positioned in all segments of the commercial jet transport market, and intends to remain the airline industry's preferred supplier through continued emphasis on quality processes, customer satisfaction, and a broad range of product offerings.
 Major elements of the 777 testing program, including flight controls tests performed on a modified 757 and component fatigue tests, have been successfully completed. Major component assembly of the first 777 began as planned in early January. Early assembly experience continues to indicate that, as a result of the design/build team and computer-aided design processes, anticipated quality and efficiency benefits in fabrication and assembly are achievable. Significant design and laboratory test activities in the areas of avionics, flight controls, software integration, and development of derivative features will be continuing over the next several quarters. During the fourth quarter, International Lease Finance Corp. and China Southern Airlines each announced orders for 6 777s, bringing cumulative announced orders to 118. Announced options total 95. The company continues to work actively with a number of potential customers for additional orders.
 The company's Defense & Space Group returned to profitability in 1992, with operating earnings of $204 million on sales of $5.4 billion. Defense and space sales are expected to decline to the $4.5 billion range for the next several years.
 Although U.S. Government defense and space programs continue to be subject to administration, congressional and agency review due to funding constraints and changes in priorities, the company's defense and space business is broadly diversified and includes a number of priority developmental programs and candidate programs for system upgrade or modification. Boeing is currently marketing a new version of the Airborne Warning and Control System (AWACS) aircraft based on a 767 aircraft platform. The Government of Japan would be the initial customer for the 767-based AWACS. If sufficient orders are obtained, the program could be launched in 1993. In early January, a restructured $2 billion demonstration/validation program was approved for the RAH-66 Comanche helicopter being developed by the Boeing-Sikorsky team.
 Based on current programs and schedules, the company projects total 1993 sales to be in the $26 billion range.
 OTHER FINANCIAL AND OPERATING DATA
 (Dollars in millions)
 Year Ended Dec. 31
 1992 1991
 Sales:
 Commercial transportation $24,133 $22,970
 Defense and space $ 5,429 $ 5,846
 Other industries $ 622 $ 498
 Operating Profit (Loss) (A):
 Commercial transportation $ 1,990 $ 2,246
 Defense and space $ 204 $ (102)
 Other industries $ 27 $ (2)
 Other income $ 230 $ 263
 Research & development expense $ 1,846 $ 1,417
 Effective income tax rate (pct) 31.1 28.9
 (A) 1992 operating profits have been reduced by $123 million attributable to the SFAS No. 106 retiree health care accounting change.
 Research and development expense for 1993 is projected to be in the $1.7 billion range, including early design activities for the 767-300 freighter.
 (Dollars in billions)
 Dec. 31 Dec. 31
 1992 1991
 Cash & short-term investments $ 3.6 $ 3.5
 Borrowings $ 1.8 $ 1.3
 Inventories (B):
 Gross $11.1 $13.1
 Net $ 2.7 $ 2.6
 Customer financing $ 2.3 $ 1.2
 Net plant and equipment $ 6.7 $ 5.5
 Firm Backlog:
 Commercial and foreign gov't $82.6 $92.8
 U.S. government 5.3 5.1
 Total $87.9 $97.9
 (B) 1991 balances reflect reclassification of prepaid pension cost.
 Approximately 55 percent of the firm backlog value for commercial jet transports is scheduled to be delivered after 1994, including all 777 aircraft. Not included in firm backlog are purchase options and announced orders for which definitive contracts have not been executed and orders from customers who have filed for bankruptcy. U.S. Government and foreign military firm backlog is limited to amounts obligated to contracts. If recognition were given to unobligated amounts, unfilled orders at Dec. 31, 1992, would be increased by $7.6 billion.
 Quarterly net earnings and earnings per share before and after adoption of the SFAS No. 106 accounting change are as follows:
 (Dollars in millions except per-share data)
 1992 Quarter
 First Second Third Fourth
 Net earnings, as originally
 reported $ 441 $ 453 $ 364
 Per share $ 1.29 $1.33 $1.07
 Net Earnings, after
 adoption of SFAS
 No. 106, but before
 transition obligation
 adjustment $ 420 $ 432 $ 345 $ 357
 Per share $ 1.23 $1.27 $1.02 $1.05
 Net earnings (loss), after
 SFAS No. 106 transition
 obligation adjustment $ (582)
 Per share $(1.71)
 JET TRANSPORT DELIVERIES
 Year Fourth Quarter
 1992 1991 1992 1991
 737 218 215 45 58
 747 61 64 15 15
 757 99 80 27 19
 767 63 62 15 14
 Total Commercial 441 421 102 106
 707 Derivatives 5 14 -- 3
 Total Deliveries 446 435 102 109
 Approximately 60 percent of the commercial jet transport deliveries in 1992 went to non-U.S. customers.
 ANNOUNCED ORDERS FOR COMMERCIAL JET TRANSPORTS
 1992 1991
 Number of Customers 32 38
 Value (billions) $17.8 $20.6
 Number of Aircraft 243 257
 By Model:
 737 114 71
 747 28 38
 757 38 49
 767 21 72
 777 42 27
 -0- 1/26/93
 /CONTACT: Paul Binder of Boeing, 206-655-6123/
 (BA)


CO: The Boeing Co. ST: Washington IN: AIR ARO SU: ERN

LM -- SE004 -- 8901 01/26/93 08:31 EST
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Date:Jan 26, 1993
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