The Boeing Company has recorded net income for 2009 of US$1.3bn (A$1.4bn), a fall of 51 per cent as delays and associated costs of the 787 and 747-8 programs outweighed stronger revenues from its defence businesses.
The fall in income came as revenue increased by 12 per cent to a record US$68.3bn (A$76bn), driven primarily by higher deliveries and growth in the Defence, Space & Security unit of the company.
By segment, Commercial Airplanes dropped to a net loss of US$583m (A$648.6m), despite revenue growing by 20 per cent to US$34bn (A$38.7bn). This was primarily attributable to a US$2.7bn (A$3bn) charge to the 787 program as the first three flight test aircraft were reclassified from program inventory to research and development as these aircraft will no longer be delivered to commercial customers. In addition, higher costs and difficult market conditions saw the company take a US$1.4bn (A$1.6bn) charge on the 747-8 program.
By contrast, Boeing Defense, Space & Security recorded a two per cent increase in net income from operations to US$3.2bn (A$3.6bn), as revenue increased by five per cent to US$33.7bn (A$37.5bn). The company noted that this reflected a strong performance from its Military Aircraft and Global Services & Support businesses, but was moderated by additional costs for the RAAF’s Wedgetail AEW&C project.
“We put a strong finish on 2009 by getting the 787 in the air and generating solid core operating performance across the company,” said Jim McNerney, Boeing chairman, president and chief executive officer. “Focus areas for 2010 are to continue our strong operational performance, certify and deliver the 787 and 747-8, and further reposition our defence, space and security business. While the challenges ahead are significant, I believe we have the people and the resources we need to be successful and to begin consistently delivering on this company’s great potential.”
For 2010, the company is expecting revenue to decrease to US$64-66bn (A$71-73bn) due to lower output on the 777 line and reduced scope on US Army modernisation and missile contracts, with earnings guidance of US$3.70-$4.00 (A$4.12-4.45) per share.