The Boeing company (NYSE: BA) said it reported third-quarter revenue increased nine percent to USD25.8 billion on record commercial deliveries.
Core earnings per share (non-GAAP) for the quarter increased 18 percent to USD2.52, reflecting strong performance across the company, and GAAP earnings per share was USD2.47.
“By continuing to profitably deliver on our large and diverse backlog, we are driving strong growth in revenue, earnings and cash flow,” said Boeing President and Chief Executive Officer Dennis Muilenburg. “Solid operating performance across our commercial and defense businesses during the quarter also supported our continued investment in innovation and our people, and our commitment to return cash to shareholders.”
Commercial Airplanes third-quarter revenue increased 10 percent to USD17.7 billion on higher delivery volume and mix (Table 4). Third-quarter operating margin was 10 percent, reflecting higher R&D and the dilutive impact of higher 787 deliveries partially offset by strong performance on production programs.
During the quarter, the company began final assembly and achieved power-on of the first 737 MAX airplane. In total, the 737 program has won nearly 2,900 firm orders for the 737 MAX since launch. Also during the quarter, the company completed firm configuration for the 777X. The 777X program is on schedule for first delivery in 2020.
Commercial Airplanes booked 166 net orders during the quarter. Backlog remains strong with nearly 5,700 airplanes valued at USD426 billion.
Boeing Military Aircraft (BMA) third-quarter revenue increased 15 percent to USD4.1 billion primarily as a result of F-15 contract negotiations and BMA operating margin was 12.2 percent. During the quarter, BMA was awarded contracts for 13 P-8A Poseidon aircraft, 22 Apache helicopters, and 15 Chinook helicopters. Also during the quarter, the company and the US Air Force team completed the first flight of a KC-46A tanker aircraft.
Network & Space Systems (N&SS) third-quarter revenue was USD2.1 billion, reflecting higher volume on the Commercial Crew program. Operating margin increased to 11.5 percent, reflecting favorable program mix. During the quarter, NASA extended Boeing´s international space station contract.
Global Services & Support (GS&S) third-quarter revenue decreased to USD2.2 billion, reflecting the timing of Airborne Early Warning and Control deliveries. Operating margin increased to 12.9 percent on strong performance. During the quarter, GS&S was awarded a contract to develop and provide the next-generation communications system for the Australian Defence Force.
Backlog at Defense, Space & Security was USD59 billion, of which 40 percent represents orders from international customers.