Summary

  • The Boeing Company is a leading global aerospace company.
  • Boeing develops, manufactures and services commercial airplanes, defense products and space systems for customers in more than 150 countries.
  • Boeing, United Airlines Finalize 737 MAX and 787 Order, Including Record Purchase for 100 Dreamliners

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The Boeing Company (NYSE: BA, LSE: BA, ASX: BA) is a leading global aerospace company, Boeing develops, manufactures and services commercial airplanes, defense products and space systems for customers in more than 150 countries. The company has manufacturing, service and technology partnerships with companies and governments worldwide and contracts with more than 20,000 diverse suppliers and partners.

Recent Developments

Boeing, Atlas Air Celebrate Delivery of Final 747, an Airplane that Transformed Aviation and Global Air Travel1

Jan 31, 2023; Boeing and Atlas Air Worldwide joined thousands of people – including current and former employees as well as customers and suppliers – to celebrate the delivery of the final 747 to Atlas, bringing to a close more than a half century of production.

Boeing employees who designed and built the first 747, known as the "Incredibles," returned to be honored at the Everett factory where the journey of the 747 began in 1967. The factory produced 1,574 airplanes over the life of the program.

Boeing, United Airlines Finalize 737 MAX and 787 Order, Including Record Purchase for 100 Dreamliners2

Dec 13, 2022; Boeing and United Airlines today announced the carrier is investing in its future fleet with an order for 100 787 airplanes, with the option to purchase 100 more. The deal is the largest 787 Dreamliner order in Boeing history. United is also purchasing 100 737 MAX jets, exercising 44 existing options and placing 56 new orders.

The airline's current orders for Boeing jets have surpassed 530, including more than 430 737 MAX airplanes.

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Financial Highlights

Revenues increased by $4,322 million to $66,608 in 2022 compared with 2021 driven by higher revenues at BCA and BGS, partially offset by lower revenues at BDS. BCA revenues increased by $6,374 million to $25,867 primarily driven by higher 737 and 787 deliveries. BGS revenues increased by $1,283 million to $17,611 primarily due to higher commercial services volume, partially offset by lower government services volume and performance. BDS revenues decreased by $3,378 million to $23,162 primarily due to charges on development programs, unfavorable performance across other defense programs, and lower P-8 and weapons volume.3

Loss from operations increased by $645 million to $4,690 in 2022 compared with 2021. BDS had a loss from operations of $3,544 million compared with earnings of $1,544 million during 2021, primarily due to charges on development programs. BCA loss from operations decreased by $4,105 million to $ $2,370 primarily due to the absence in 2022 of the $3,460 million reach-forward loss taken on the 787 program in 2021, higher 737 deliveries and lower abnormal production costs, partially offset by higher research and development spending, charges related to the war in Ukraine and other period expenses. BGS earnings from operations increased by $710 million to $2,727 in 2022 compared with 2021 primarily due to higher commercial services volume and favorable mix, partially offset by lower government services performance.

Company Overview

The Boeing Company s one of the world’s major aerospace firms. Boeing develops, manufactures and services commercial airplanes, defense products and space systems for customers in more than 150 countries.

Business Segments

Commercial Airplanes Segment

Produces and markets commercial jet aircraft principally to the commercial airline industry worldwide. Boeing is a leading producer of commercial aircraft and offer a family of commercial jetliners designed to meet a broad spectrum of global passenger and cargo requirements of airlines. This family of commercial jet aircraft in production includes the 737 narrow-body model and the 767, 777 and 787 widebody models. The company ended production of the 747 wide-body model in 2022. Development continues on the 777X program and the 737-7 and 737- 10 derivatives.

Defense, Space & Security Segment

This segment engages in the research, development, production and modification of manned and unmanned military aircraft and weapons systems for strike, surveillance and mobility, including fighter and trainer aircraft; vertical lift, including rotorcraft and tilt-rotor aircraft; and commercial derivative aircraft, including anti-submarine and tanker aircraft. In addition, this segment engages in the research, development, production and modification of the following products and related services: strategic defense and intelligence systems, including strategic missile and defense systems, command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR), cyber and information solutions, and intelligence systems, satellite systems, including government and commercial satellites and space exploration.

Global Services Segment

This segment provides services to its commercial and defense customers worldwide. BGS sustains aerospace platforms and systems with a full spectrum of products and services, including supply chain and logistics management, engineering, maintenance and modifications, upgrades and conversions, spare parts, pilot and maintenance training systems and services, technical and maintenance documents, and data analytics and digital services.

Boeing Capital Segment

BCC seeks to ensure that Boeing customers have the financing they need to buy and take delivery of their Boeing product, while managing overall financing exposure. BCC’s portfolio consists of equipment under operating leases, sales-type/finance leases, notes and other receivables, assets held for sale or re-lease and investments.

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Location

As of December 31, 2022, the combined square footage at the following major locations totaled more than 81 million square feet:

  • .Commercial Airplanes – Greater Seattle, WA; China; Greater Charleston, SC; Greater Portland, OR; Greater Los Angeles, CA; Greater Salt Lake City, UT; Australia and Canada
  • Defense, Space & Security – Greater St. Louis, MO; Greater Seattle, WA; Greater Los Angeles, CA; Philadelphia, PA; Mesa, AZ; Huntsville, AL; Oklahoma City, OK; Heath, OH; Greater Washington, DC; Australia; Greater Portland, OR; Houston, TX; and Kennedy Space Center
  • Global Services – San Antonio, TX; Greater Miami, FL; Dallas, TX; Great Britain; China; Jacksonville, FL; and Germany
  • Other – Chicago, IL; India; Greater Los Angeles, CA; Greater St. Louis, MO; and Greater Washington, DC.

Program Highlights

737 Program The accounting quantity for the 737 program increased by 400 units during 2022 due to the program's normal progress of obtaining additional orders and delivering airplanes.

The company increased the production rate to 31 per month in 2022, and expect to implement further gradual production rate increases based on market demand and supply chain capacity. The company expensed abnormal production costs of $188 million and $1,887 million during the years ended December 31, 2022 and 2021.

The 737-7 and 737-10 models are currently going through FAA certification. The Consolidated Appropriations Act, 2023 amended Section 116 of the ACSAA, such that applications for original or amended type certifications that were submitted to the FAA prior to December 27, 2020, including those of the 737-7 and 737-10, are no longer subject to the crew alerting specifications of Section 116. Additionally, beginning one year after the FAA issues the type certificate for the 737-10, any new 737 MAX aircraft must include certain safety enhancements to be issued an original airworthiness certification by the FAA.

747 Program The company completed production of the 747 in the fourth quarter of 2022 and delivery of the last aircraft is expected to occur in early 2023. Ending production of the 747 did not have a material impact on its financial position, results of operations or cash flows.

767 Program The accounting quantity for the 767 program increased by 24 units during 2022 due to the program's normal progress of obtaining additional orders and delivering airplanes. The 767 assembly line includes the commercial program and a derivative to support the KC-46A Tanker program. The commercial program has near break-even gross margins. Boeing is currently producing at a combined rate of 3 aircraft per month.

777 and 777X Programs The accounting quantity for the 777 program increased by 40 units during 2022 due to the program's normal progress of obtaining additional orders and delivering airplanes. Boeing is currently producing at a combined production rate of 3 per month for the 777/777X programs. The accounting quantity for the 777X program increased by 50 units during 2022 reflecting the launch of the 777X-8 freighter during the first quarter of 2022. First delivery of the 777X-8 freighter is expected in 2027.

787 Program During the fourth quarter of 2022, the company increased the accounting quantity for the 787 program by 100 units due to the program’s normal progress of obtaining additional orders and delivering aircraft. The increase in the accounting quantity improved the program’s profit margin.

The company received FAA authorization to resume delivery on July 28, 2022 and deliveries resumed in August. During 2022, the company delivered 31 aircraft to customers. The company continue to conduct inspections and rework on undelivered aircraft. During 2021, the company delivered 14 aircraft between March and May 2021 prior to deliveries being paused in May 2021 due to production quality issues including in its supply chain. Boeing has implemented changes in the production process designed to ensure that newly-built airplanes meet its specifications and do not require further inspections and rework. At December 31, 2022, and 2021, the company had approximately 100 and 110 aircraft in inventory. Most of the aircraft in inventory at December 31, 2022 are expected to deliver by the end of 2024.

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Company History

Brief history of the company:4

1910s - In 1916, William Boeing and George Conrad Westervelt founded Pacific Aero Products Company, which later became The Boeing Company. The company built its first airplane, the Boeing Model 1, in 1916.

1920s - During the 1920s, Boeing became a leading manufacturer of commercial and military airplanes. It developed the Model 40, which was the first airplane built specifically for commercial air travel. It also developed the Boeing 247, which was the first modern airliner with an all-metal structure, retractable landing gear, and an enclosed cockpit.

1930s - In the 1930s, Boeing developed the B-17 Flying Fortress, a four-engine heavy bomber used in World War II. It also developed the Model 314 Clipper, which was a large passenger airplane used for transatlantic flights.

1940s - During World War II, Boeing produced thousands of aircraft for the military, including the B-17 and B-29 bombers. The company also developed the jet-powered Boeing 707 in the 1940s, which became a major commercial success.

1950s-1960s - In the 1950s and 1960s, Boeing developed a series of jetliners that revolutionized air travel, including the 707, 727, 737, and 747. The 747, which was introduced in 1970, became the world's largest commercial airplane and remained so until the introduction of the Airbus A380 in 2007.

1970s-1980s - During the 1970s and 1980s, Boeing continued to develop new airplanes, including the 757 and 767. It also began work on the 777, which was introduced in 1995 and became one of the most successful wide-body airplanes in history.

1990s-2000s - In the 1990s and 2000s, Boeing developed the 787 Dreamliner, which was the first commercial airplane to be built mostly from composite materials. The company also developed military airplanes, such as the F-15 Eagle and the F/A-18 Hornet.

Today - Today, Boeing continues to be a major player in the aerospace industry. It produces a range of commercial and military airplanes, including the 737 MAX, 747-8, 767, 777, and 787 Dreamliner. It also produces the Apache helicopter and Chinook helicopter, as well as space and defense systems.

References

  1. ^ https://investors.boeing.com/investors/news/press-release-details/2023/Boeing-Atlas-Air-Celebrate-Delivery-of-Final-747-an-Airplane-that-Transformed-Aviation-and-Global-Air-Travel/default.aspx
  2. ^ https://investors.boeing.com/investors/news/press-release-details/2022/Boeing-United-Airlines-Finalize-737-MAX-and-787-Order-Including-Record-Purchase-for-100-Dreamliners/default.aspx
  3. ^ https://fintel.io/doc/sec-boeing-co-12927-10k-2023-january-27-19384-8788
  4. ^ https://www.boeing.com/resources/boeingdotcom/history/pdf/Boeing-Chronology.pdf
Created by Asif Farooqui on 2023/02/25 05:43
     
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