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 Year Ended 4th Quarter
 1991 1990 1991 1990
 Sales (A) (Billions) $29.314 $27.595 $7.753 $7.015
 Net earnings (Millions) $ 1,567 $1,385 $ 403 $ 318
 Earnings per share (B) $ 4.56 $ 4.01 $ 1.17 $ 0.92

(A) Including other operating revenues (B) The 1991 earnings per share calculations are based
 on 343,355,917 shares.
 SEATTLE, Jan. 29 /PRNewswire/ -- Sales of $29.314 billion and net earnings of $1.567 billion or $4.56 per share for 1991 were reported by Frank Shrontz, Boeing (NYSE: BA) chairman and chief executive officer. Comparable figures for 1990 were sales of $27.595 billion and net earnings of $1.385 billion or $4.01 per share. Sales for the fourth quarter of 1991 were $7.753 billion with earnings of $403 million or $1.17 per share, compared with 1990 sales of $7.015 billion with earnings of $318 million or 92 cents per share.
 The increase in net earnings for 1991 compared to 1990 is primarily due to increased commercial aircraft sales, a lower defense and space business operating loss and a lower effective federal income tax rate. The above items were partially offset by higher research and development expense, principally for the 777 program, and lower other income.
 Shrontz stated that the company's defense and space business operating loss of $102 million for the year compares to a 1990 loss of $418 million and that the fourth quarter of 1991 was profitable. The reduction in the 1991 operating loss is principally due to improved technical, cost, and schedule performance, to the consolidation and restructuring of operations, and to the termination of certain fixed price development contracts. The company expects the defense and space business to be profitable in 1992.
 Due to the recession in the United States and a general slowdown in economic growth worldwide, airlines reported little or no traffic growth in 1991 and many, particularly in the United States, had substantial losses. The outlook for airlines for 1992 remains uncertain although traffic and yields appeared to be improving at year end. Announced orders for 257 Boeing jet aircraft valued at $20.6 billion, including $16.9 billion from foreign customers, under these economic circumstances are encouraging. The economic slowdown has particularly affected demand for aircraft with less than 150 seats of all airframe manufacturers and production rates for the 737 program may be subject to some further reduction. Worldwide demand for wide body aircraft remains strong as more carriers add international routes to their structure.
 Including a January 1992 Japan Air Lines announced order, total orders for 86 777 twinjets plus 75 options from seven airlines this early in the program compares favorably with previous new jet transport introductions. Additionally, another customer has indicated an intent to order the twinjet. Accomplishments during 1991 on the 777 program included finalizing the basic aircraft configuration, increasing the range 700 nautical miles for the initial model with no reduction in the number of seats or cargo capacity, and signing contracts with all major outside production suppliers.
 On Jan. 22, the company announced the sale of Boeing of Canada's de Havilland commuter aircraft division to Bombardier Inc. and the Province of Ontario, Canada. The purchase will be effective on closing, which is anticipated to occur in February. It is expected that the sale will generate approximately $60 million of cash and will result in a nominal book gain.
 The additional reductions from currently planned levels of Department of Defense budgets for fiscal 1993 and beyond, as ultimately determined by the Administration and Congress, will result in the B-2 and possibly other company programs being subject to stretch-out, curtailment or termination. However, the company's defense and space business is broadly diversified and includes a number of programs subject to system upgrade or modification as the focus of national defense strategy changes. Based on current programs and schedules, including the B-2 curtailment as proposed by the Administration, annual sales volume for defense and space programs is expected to be in the $5 billion range for the next few years.
 Important new government business acquisitions in 1991 included the award of the engineering and manufacturing development contract for the F-22 air superiority fighter program to the Lockheed/Boeing/General Dynamics team and the award of the development and prototype contract for the RAH-66 light attack/armed reconnaissance helicopter to the Boeing/Sikorsky team. The company continues to work with the United States, Japanese and other governments on a military derivative of the 767 aircraft to meet Airborne Warning and Control System (AWACS) and other requirements for introduction in the late 1990s. If sufficient orders are obtained the program could be launched in 1992.
 During the fourth quarter, the Army awarded Boeing a $1.6 billion contract for the Reserve Component Automation System (RCAS), a computer network which will enhance the readiness and mobilization capabilities of Army National Guard and Army Reserve units at approximately 4,700 locations. The contract calls for Boeing and its subcontractor team to provide overall program management during the 12-year life cycle of the contract, integrated logistics support, systems engineering, applications development, testing, procurement and deployment of commercial off-the-shelf software and hardware, and training.
 Total announced aircraft orders for 1991 were 257 commercial jet transports and 12 commuter aircraft valued at $20.7 billion compared to 543 jet transports (including 11 military derivatives) and 30 commuter aircraft valued at $48.0 billion for 1990
 During the fourth quarter, 15 customers announced orders for 86 commercial jet transports and 6 commuter aircraft valued at $5.8 billion. The fourth quarter jet transport orders consisted of 37 737s, 14 747s, 15 757s, 16 767s and 4 777s. The orders included British Airways for 8 747s and 3 767s, CAAC of China for 13 737s, Lauda Air for 1 767 and 4 777s, LOT Polish Airlines for 9 737s, Malaysian Airline System for 9 737s and 1 747, Shanghai of China for 5 757s, and United Airlines for 10 767s.
 During 1991, the company delivered 14 707 military derivatives, 215 737s, 64 747s, 80 757s and 62 767s for a total of 435 jet transports. Comparable 1990 deliveries were 4 707 military derivatives, 174 737s, 70 747s, 77 757s and 60 767s for a total of 385 jet transports. During 1991, 59 commuter aircraft were delivered compared to 64 in 1990. Current schedules provide for the 1992 delivery of 5 707 military derivatives, 223 737s, 60 747s, 97 757s, 64 767s for a total of 449 jet transports. In addition, six de Havilland commuter aircraft are scheduled to be delivered prior to the end of February 1992.
 Commercial revenues in 1991 were $23.0 billion, U.S. Government revenues were $5.6 billion, and foreign government military revenues were $.7 billion. Comparable revenues for 1990 were $21.2 billion, $5.4 billion and $1.0 billion, respectively. Based on current programs and schedules, the company projects total 1992 revenues to be in the $29.5 billion range with increased 737 and 757 jet transport sales offsetting nominal defense and space sales reductions.
 The company's financial position at December 31, 1991 remained strong, with cash and short-term investments of $3.453 billion and debt of $1.317 billion. Gross and net inventories were $13.742 billion and $3.277 billion, respectively. Reported values at Dec. 31, 1990 were cash and short-term investments of $3.326 billion, debt of $315 million, and gross and net inventories of $14.402 billion and $3.332 billion, respectively. Excluding the net increase in outstanding debt, cash and short-term investments declined by $875 million in 1991. Cash requirements will continue to exceed amounts generated from operations in 1992 principally in support of investments in the 777 twinjet and other commercial programs.
 Research and development expenditures of $1.417 billion, and general and administrative expense of $1.291 billion, were charged directly to earnings in 1991. Comparable expenses for 1990 were $827 million and $1.246 billion, respectively. The $590 million increase in research and development expense is due to higher spending in support of commercial jet transport programs, primarily the 777 twinjet. Research and development expenditures for 1992 are projected to be in the $1.8 billion range.
 Investment in plant and equipment of $1.850 billion in 1991 compares to $1.586 billion in 1990. The high level of investment for the two years is attributable primarily to requirements to support increasing jet transport production schedules and the facility requirements of the 777 twinjet.
 Other income in 1991 was $263 million versus $448 million for the comparable period of 1990. Although cash balances were higher in 1991 compared to the year 1990, other income in 1991 was lower due to the 1990 gain from the sale of Peabody Holding Co., a 1990 interest payment related to a refund of prior years' federal income tax payments, and lower 1991 interest rates.
 Total firm backlog of unfilled orders at Dec. 31, 1991 was $97.9 billion, compared with $97.2 billion at the end of 1990. Of the total Dec. 31, 1991 backlog, $92.8 billion or 95 percent is for commercial customers (including foreign governments), and $5.1 billion or 5 percent is for the U.S. Government. Comparable figures at the end of 1990 were $91.5 billion or 94 percent commercial, and $5.7 billion or 6 percent U.S. Government.
 Firm backlog excludes purchase options and announced orders for which definitive contracts have not been executed and contracts from customers who have filed for bankruptcy. Additionally, the company limits U.S. Government and foreign military firm backlog to amounts obligated to contracts. If recognition were given to unobligated amounts under government contracts, unfilled orders at Dec. 31, 1991 would be increased by $8.1 billion.
 -0- 1/29/92
 /CONTACT: Paul Binder of The Boeing Co., 206-655-6123/
 (BA) CO: The Boeing Co. ST: Washington IN: AIR ARO SU: ERN

JH-LM -- SE007 -- 4770 01/29/92 13:24 EST
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Date:Jan 29, 1992
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