The Boeing Company 2007 Annual Report
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The Boeing Company
Boeing is the world’s leading aerospace company and the largest manufacturer of commercial jetliners and military aircraft combined, providing products and tailored services to airlines and U.S. and allied armed forces around the world. Our capabilities include rotorcraft, electronic and defense systems, missiles, satellites, launch systems and advanced
information and communication systems. Our reach extends to customers in more than 90 countries around the world, and we are a leading U.S. exporter in terms of sales. With corporate offices in Chicago, Boeing employs more than 159,300 people in 49 American states and 70 countries. Our enterprise also leverages the talents of hundreds of thousands more people working for Boeing suppliers worldwide.
Table of Contents
1 2 7 8 10 12 14 16 Operational Highlights Message to Shareholders Executive Council Boeing Commercial Airplanes Boeing Integrated Defense Systems Serving Our Customers Global Presence Technology 20 80 87 88 89 18 Pioneering Environmental Performance Financials Selected Programs, Products and Services Board of Directors Company Officers Shareholder Information
I Achieved records for revenues,
earnings, cash flow and backlog. Revenue rose 8 percent to $66.4 billion; net income grew 84 percent to $4.1 billion; cash flow rose 28 percent to $9.6 billion; and total backlog increased more than 30 percent to $327 billion. I Set company record for commercial
and services programs, leading to overall company margins of 8.8 percent and simultaneous double-digit operating margins for the year in both our commercial airplane and defense businesses for the first time ever (10.7 percent each). I Captured nine out of 11 major
airplane orders and a third consecutive year of orders exceeding 1,000 planes with a total of 1,413 net (1,423 gross) orders during 2007. Also set singleyear order records for our 787, 737 and freighters. I Increased dividend 14 percent;
approved a new share-repurchase plan for up to $7 billion; and repurchased 29 million shares during the year. I Further strengthened our balance
competitions entered by Integrated Defense Systems, including key orders for Tracking and Data Relay Satellites, Joint Cargo Aircraft, the Airborne Early Warning and Control aircraft for the Republic of Korea and two key pieces of NASA’s Ares program; received 100percent award fee for Ground-based Midcourse Defense program and 100 percent of incentive milestone criteria on Future Combat Systems. I Achieved significant Commercial
sheet by increasing cash and shortterm investments by $2.9 billion and reducing consolidated debt by $1.3 billion. I Continued our focus on growth
and productivity with substantial additions to backlog, major efficiency gains and solid execution on production
Airplanes milestones, including surpassing 800 orders for the 787; 7,000 orders for the 737; and 1,000 orders each for both the 767 and 777. Began 787 production, completed firm configuration of the 747-8 Intercontinental passenger plane, prepared for 777 Freighter production and continued investing for future growth.
2007 Financial Highlights
U.S. dollars in millions except per share data
Revenues Net earnings Earnings per share* Operating margins Contractual backlog Total backlog†
66,387 4,074 5.26 8.8% 296,964 327,166
61,530 2,215 2.84 4.9% 216,567 250,253
53,621 2,572 3.19 5.2% 160,637 205,215
51,400 1,872 2.24 3.9% 104,778 152,873
49,311 718 0.85 0.8% 104,855 155,498
*Before cumulative effect of accounting change and net gain (loss) from discontinued operations † Total backlog includes contractual and unobligated backlog. See page 25.
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