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BOEING REPORTS THIRD-QUARTER 1992 RESULTS (Dollars in millions except per-share data)

 BOEING REPORTS THIRD-QUARTER 1992 RESULTS
 (Dollars in millions except per-share data)
 Nine Months Third Quarter
 Ended Sept. 30,
 1992 1991 1992 1991
 Sales $22,687 $21,561 $6,897 $7,657
 Net Earnings $1,258 $1,164 $364 $401
 Earnings Per Share $3.69 $3.39 $1.07 $1.17
 Average Shares (millions) 340.5 343.6
 SEATTLE, Oct. 26 /PRNewswire/ -- Sales of $22.7 billion and net earnings of $1,258 million or $3.69 per share for the first nine months of 1992 were reported by Frank Shrontz, Boeing (NYSE: BA) chairman and chief executive officer. Comparable figures for 1991 were sales of $21.6 billion and net earnings of $1,164 million or $3.39 per share.
 The increase in net earnings for the first nine months of 1992 compared to the same period in the prior year was primarily due to increased commercial aircraft sales and improved cost performance in all major segments. These factors were partially offset by higher research and development expenses, principally for the new 777 program, and a higher effective federal income tax rate.
 1992 third-quarter sales of $6.9 billion were 10 percent below 1991 third-quarter sales, principally due to fewer commercial jet airplane deliveries. Third quarter earnings were 9 percent lower at $364 million or $1.07 per share compared with $401 million or $1.17 per share for the 1991 third quarter.
 Total sales for 1992 are projected to be in the $30 billion range.
 Announced commercial orders during the third quarter totaled 47 aircraft valued at $2.1 billion, including a Southwest Airlines order for 34 737s. Total announced orders for commercial jet transports for the first nine months of 1992 were valued at $11.5 billion compared to $14.7 billion for the same period of 1991. Total announced orders for the year 1992 are expected to remain below the 1991 level but should result in Boeing maintaining a favorable market share.
 Shrontz noted that the weak economic environment in the United States and most areas of the world continues to result in mixed performance by the world's airlines. As a consequence, some airline customers have requested to reschedule orders and option delivery positions. Some of the negotiated deferred deliveries have been offset, however, by new orders and requests by other customers to accelerate delivery positions. As previously announced, the 737 production rate has been reduced from 21 per month to 14 per month, and the 757 production rate will be reduced from 8-1/2 per month to 7 per month in the second half of 1993. The 747 and 767 production rates are expected to remain at 5 per month through 1993.
 More than two-thirds of the engineering design and planning requirements for the new 777 program have been released to manufacturing. Production of some major components has begun, and initial tests 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 activities in the areas of avionics, flight controls, software integration, and development of derivative features will be continuing over the next several quarters. Announced orders and options remain at 106 and 93, respectively, and the company continues to work actively with a number of potential customers for additional orders.
 Congress has appropriated fiscal year 1993 funds for major Boeing Defense & Space Group programs, such as the B-2 bomber, F-22 fighter, RAH-66 Comanche helicopter, the V-22 Osprey tilt-rotor aircraft and the Space Station Freedom. A letter contract was signed last week to transition the current V-22 development effort to a newly defined program. Initial funding of $550 million was provided to the Boeing and Bell Helicopter Textron team for the next V-22 development phase. In mid-October the Group received a stop work order from the Navy for the P-3 Update IV development program, an advanced avionics system for the P-3C Orion aircraft. Discussions with the Navy for settlement of the contract are progressing and final settlement is expected to be satisfactory to the company. Approximately 500 employees are affected by the stop work order.
 During the third quarter, Boeing Defense & Space Group received a $588 million contract from the U.S. Navy to build an additional 120 A-6 composite wingsets. Boeing built 178 A-6 wingsets under a previous contract. The Defense & Space Group continues to pursue foreign orders of the Airborne Warning and Control System on a 767 airframe.
 Three-year labor agreements were reached earlier in October with the International Association of Machinists and Aerospace Workers and the United Auto Workers, representing approximately 51,000 employees in total. Negotiations have commenced with the Seattle Professional Engineering Employees Association, representing approximately 28,000 employees. OTHER FINANCIAL AND OPERATING DATA
 (Dollars in millions)
 Nine Months Ended
 Sept. 30, Third Quarter
 1992 1991 1992 1991
 Sales:
 Commercial $18,227 $17,349 $5,173 $5,846
 U.S. Government $3,900 $3,676 $1,560 $1,651
 Foreign Government $560 $536 $164 $160
 Other Income $184 $189 $62 $62
 R&D Expense $1,359 $1,036 $459 $375
 Effective Income
 Tax Rate (percent) 31.3 28.8 31.2 29.5
 (Dollars in billions)
 Sept. 30, Dec. 31,
 1992 1991
 Cash & Short-Term Investments $4.6 $3.5
 Borrowings $1.7 $1.3
 Inventories
 Gross $12.6 $13.7
 Net $ 3.7 $ 3.3
 Firm Backlog
 Commercial and Foreign Gov't $88.2 $92.8
 U.S. Government 4.8 5.1
 Total $93.0 $97.9
 Customer financing commitments and negotiated lump sum wage payments will contribute significantly to the fourth quarter cash requirements.
 Approximately 50 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 September 30, 1992, would be increased by $8.3 billion.
 Jet transport deliveries:
 Nine Months Third Quarter
 1992 1991 1992 1991
 737 173 157 48 53
 747 46 49 12 17
 757 72 61 21 19
 767 48 48 15 16
 Total Commercial 339 315 96 105
 707 Derivatives 5 11 -- 7
 Total Deliveries 344 326 96 112
 Sixty-one percent of the commercial jet transport deliveries in the first nine months of 1992 went to non-U.S. customers.
 Announced orders for commercial jet transports:
 Year-to-Date
 1992 1991
 No. of Customers 24 21
 Value (Billions) $11.5 $14.7
 No. of aircraft 158 171
 By Model:
 737 86 34
 747 19 24
 757 15 34
 767 8 56
 777 30 23
 Over 80 percent of the 1992 announced order value was from non-U.S. customers.
 -0- 10/26/92
 /CONTACT: Paul Binder of The Boeing Co., 206-655-6123/
 (BA) CO: The Boeing Co. ST: Washington IN: AIR ARO SU: ERN


LM -- SE012 -- 4841 10/26/92 13:30 EST
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Date:Oct 26, 1992
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