Printer Friendly

BOEING REPORTS FIRST QUARTER 1992 SALES, EARNINGS

 BOEING REPORTS FIRST QUARTER 1992 SALES, EARNINGS
 Three Months Ended March 31: 1992 1991
 Sales(A) (Billions) $7.967 $6.091
 Net Earnings (Millions) $ 441 $ 309
 Earnings per share(B) $ 1.29 $ 0.90
 (A) Including other operating revenues
 (B) The 1992 earnings per share calculations are based on
 341,454,588 shares
 SEATTLE, April 27 /PRNewswire/ -- Sales of $7.967 billion and net earnings of $441 million or $1.29 per share for the first quarter of 1992 were reported by Frank Shrontz, Boeing (NYSE: BA) chairman and chief executive officer. Reported figures for 1991 were sales of $6.091 billion and net earnings of $309 million or 90 cents per share.
 The increase in net earnings for the first quarter 1992 compared to the same period of 1991 is primarily due to increased commercial aircraft sales and to profits from the defense and space business which reported a loss in the same quarter of 1991. The above items were partially offset by higher research and development expenses, principally for the 777 program, and a higher effective federal income tax rate.
 Jet transport deliveries for the first quarter and projected deliveries for 1992 compared to the prior year are as follows:
 First Quarter Calendar Year
 1992 1991 1992 Est. 1991
 737 66 45 221 215
 747 16 13 60 64
 757 25 20 97 80
 767 17 13 62 62
 Total Commercial 124 91 440 421
 707 Derivatives 3 1 5 14
 Total Deliveries 127 92 445 435
 Shrontz reported that commercial jet transport deliveries in the second quarter of 1992 are currently projected to be about the same as the 119 delivered in the second quarter of 1991, but second-half 1992 deliveries and sales will be below the second half of 1991, principally due to fewer scheduled 747 deliveries and the reduction of the 737 production rate from 21 per month to 14 per month in the fall of 1992.
 Based on current programs and schedules, the company continues to project total 1992 revenues to be in the $29.5 billion range with increased commercial jet transport sales offsetting nominal defense and space sales reductions.
 Early airline traffic statistics for 1992 indicate that the combined effects of the Gulf War and the U.S. recession may be receding. For the first quarter of 1992, U.S. carriers' traffic increased 5 percent compared to the same period of 1991. For international carriers, the International Aircraft Transport Association reported a traffic increase of 28 percent for the first two months of 1992 relative to the same period of 1991 when traffic was extremely depressed due to the Gulf War. The world travel and tourism industry also reported a consistent increase in travel bookings for the spring months compared to the same period of a year ago.
 Development of the 777 twinjet is proceeding on schedule with a key milestone, 25 percent of the engineering requirements, released to manufacturing. Developmental testing, tool fabrication and detail part production have commenced. The facility expansion program to support the production and assembly of the 777 is on schedule. The program includes an Integrated Aircraft Systems Laboratory which will be completed this fall to support 777 ground and flight testing that will confirm the twinjet's operational capability, reliability, and maintainability objectives. To date, seven airlines have announced orders for 88 777 twinjets plus 75 options. Also, Cathay Pacific Airways Ltd. announced its intention to place an order for 11 of the new twinjets and options for an additional 11.
 During March, the sale of Boeing of Canada's de Havilland commuter aircraft division to Bombardier Inc. and the Province of Ontario was finalized. Subject to final audit, the company expects to realize about $50 million of cash from the transaction and record a nominal book gain. Shrontz indicated that Boeing will continue to play an active role in the Canadian aerospace industry through its production facilities in Winnipeg and Arnprior and through subcontract work with a broad range of Canadian companies.
 During the first quarter, orders were received for 56 commercial jet transports valued at $4.4 billion compared to orders for 29 jet transports valued at $3.3 billion in the first quarter of 1991. The 1992 first quarter jet transport orders consisted of 15 737s, 9 747s, 15 757s, 5 767s and 12 777s. The orders included Japan Air Lines for 10 777s, Thai Airways International for 4 747s and 2 777s, USAir for 15 757s, Singapore Airlines for 4 747s, Air France for 3 767s and CSA of Czechoslovakia for 5 737s.
 During the quarter, the company was awarded a $436 million contract by the U.S. Army to produce 679 Pedestal Mounted Avenger units, bringing the total number of units purchased by the Army since 1987 to 1,004. The multi-year contract provides for production over four consecutive years rather than the standard annual contract purchase. Production of the multi-year order will begin in early 1993.
 The Department of Defense, NASA and Congress have commenced the fiscal year 1993 budget process. Funding levels for major company programs such as the B-2 bomber, F-22 fighter, RAH-66 Comanche helicopter, V-22 tiltrotor aircraft and Space Station Freedom are uncertain because of the changing national defense strategy and these programs may be subject to stretch-out, curtailment, or possibly termination. However, the company's defense and space business is broadly diversified and includes a number of programs which may receive additional funding for system upgrade or modification.
 Commercial revenues in the first quarter were $6.5 billion, U.S. Government revenues were $1.3 billion, and foreign government military revenues were $0.1 billion. Comparable revenues for 1991 were $4.9 billion, $1.0 billion and $0.2 billion, respectively.
 The company's financial position at March 31 remained strong with cash and short-term investments of $3.994 billion and debt of $1.309 billion. Gross and net inventories were $13.506 billion and $3.355 billion, respectively. Reported values at Dec. 31, 1991, were cash and short-term investments of $3.453 billion, debt of $1.317 billion, and gross and net inventories of $13.742 billion and $3.277 billion, respectively. The increase in cash and short-term investments during the quarter was primarily due to the high level of first quarter jet transport deliveries. For the year 1992, the company currently projects total cash requirements to exceed amounts generated from operations.
 Research and development expenses of $445 million were charged directly to earnings in the first quarter compared with $323 million for the first quarter of 1991. The $122 million increase is due to higher spending in support of commercial jet transport programs, primarily the 777 twinjet. Research and development expenditures for the year 1992 are projected to be in the $1.8 billion range.
 Other income in the first quarter was $60 million versus $67 million for the comparable period of 1991. For the year 1992, other income is expected to be somewhat below 1991 primarily due to projected average lower interest rates on short-term investments.
 Total firm backlog of unfilled orders at March 31, 1992, was $95.8 billion, compared with $97.9 billion at the end of 1991. Of the total March 31 backlog, $90.2 billion or 94 percent was for commercial customers (including foreign governments), and $5.6 billion or 6 percent was for the U.S. Government. Comparable figures at the end of 1991 for commercial customers were $92.8 billion or 95 percent, and $5.1 billion or 5 percent U.S. Government.
 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. Additionally, U.S. Government and foreign military firm backlog is limited to amounts obligated to contracts. If recognition were given to unobligated amounts under government contracts, unfilled orders at March 31, 1992, would be increased by $9.2 billion.
 -0- 4/27/92
 /CONTACT: Paul Binder of The Boeing Co., 206-655-6123/
 (BA) CO: The Boeing Co. ST: Washington IN: AIR ARO SU: ERN


LM -- SE008 -- 3242 04/27/92 14:03 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Apr 27, 1992
Words:1352
Previous Article:COMPTEK ANNOUNCES FCC APPROVAL OF DATAMOVER 2000
Next Article:BOEING REPORTS SECOND-QUARTER 1992 DIVIDEND


Related Articles
SPS TECHNOLOGIES REPORTS IMPROVED FIRST QUARTER EARNINGS
THE HENLEY GROUP REPORTS FIRST QUARTER EARNINGS
BOEING REPORTS SECOND-QUARTER 1992 RESULTS
BOEING REPORTS THIRD-QUARTER 1992 RESULTS (Dollars in millions except per-share data)
BOEING TO IMPLEMENT ACCOUNTING CHANGE
BOEING REPORTS 1992 FOURTH-QUARTER AND FULL-YEAR RESULTS
BOEING REPORTS 1993 FIRST-QUARTER RESULTS
BOEING REPORTS 1993 FIRST-QUARTER RESULTS
BOEING REPORTS 1993 THIRD QUARTER RESULTS
BOEING REPORTS EARNINGS BOOST.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters