Boeing Posts Record Sales, Revenue, Raises 2007 Outlook
CHICAGO --- The Boeing Company fourth quarter net earnings more than doubled to $989 million, or $1.29 per share, from $460 million, or $0.58 per share, a year ago. Adjusted earnings per share*, removing effects of tax benefits and discontinued businesses, rose 57 percent to $1.16 per share.
Boeing boosted its 2007 earnings per share guidance to between $4.55 and $4.75, and set its 2008 guidance at between $5.55 and $5.75, reflecting expected strong revenue growth and expanding margins across its businesses. The company's 2007 R&D forecast is unchanged and R&D spending is expected to decline in 2008.
"2006 was a very good year for Boeing. We achieved new records in revenue, cash flow and backlog, and overcame some meaningful challenges by focusing on improving productivity and meeting our commitments," said Boeing Chairman, President and Chief Executive Jim McNerney. "This focus on performance gives us the confidence to set high expectations for 2007 and 2008."
Boeing's fourth-quarter revenue rose 26 percent to $17.5 billion on double-digit growth in its Commercial Airplanes and Integrated Defense Systems businesses. The 57 percent increase in fourth-quarter adjusted EPS* was due to strong business performance, partially offset by an additional charge on the Airborne Early Warning & Control (AEW&C) program. Operating cash flow for the quarter was $2.4 billion driven by strong earnings growth and a large volume of commercial airplane orders.
For 2006, the company's reported earnings totaled $2.85 per share, down from $3.20, while revenue rose 15 percent to $61.5 billion. Adjusted EPS* for the year grew 51 percent to $3.62 per share. Record operating cash flow of $7.5 billion provided outstanding liquidity to the company, while free cash flow* increased to $5.8 billion. (end of excerpt)
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Boeing Fourth-Quarter EPS Doubles; Revenue up 26%; 2007 EPS Outlook Raised (Excerpt)