Boeing 2009 Annual Report Download - page 35

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Revenues
Year-over-year changes in Revenue are shown in the following table:
(Dollars in millions)
2009
vs. 2008
2008
vs. 2007
New airplane sales $6,129 $(4,876)
Aircraft trading (33) (264)
Commercial aviation services business (308) 17
Total $5,788 $(5,123)
The increase in revenue of $5,788 million in 2009 from 2008 is primarily attributable to higher new
airplane deliveries partially offset by lower intercompany revenues. Prior year revenues were
negatively impacted by the 2008 IAM strike. The decrease in revenues from commercial aviation
services business was driven by economic conditions.
The decrease in revenue of $5,123 million in 2008 from 2007 is primarily attributable to lower new
airplane deliveries. The IAM strike resulted in 104 airplane deliveries moving out of 2008 which
reduced 2008 revenues by $6,406 million. The strike impact was partially offset by higher
intercompany revenues of $804 million, and higher pre-strike deliveries, net of model mix changes, of
$726 million. Aircraft trading activity decreased by $264 million as a result of fewer sales of used
aircraft. Revenues in commercial aviation services business increased by $17 million driven by
increased spares and services revenue offset by decreased passenger to freighter conversions.
Commercial jet aircraft deliveries as of December 31, were as follows:
737 747 767 777 Total
2009
Cumulative Deliveries 3,128 1,418 982 836
Deliveries 372* 8 13 88 481
2008
Cumulative Deliveries 2,756 1,410 969 748
Deliveries 290* 14 10* 61 375
2007
Cumulative Deliveries 2,466 1,396 959 687
Deliveries 330* 16 12* 83 441
* Intercompany deliveries included five 737 aircraft in 2009, two 767 aircraft and two 737 aircraft in
2008 and one 767 aircraft and one 737 aircraft in 2007.
Earnings From Operations
Earnings from operations for 2009 decreased by $1,769 million when compared to 2008, primarily due
to the reclassification from inventory to research and development expense of $2,481 million related to
the three 787 flight test aircraft previously recorded as inventory as of July 31, 2009. Additional
production costs incurred between August and December 2009 of $212 million related to those flight-
test airplanes were also included in research and development expense. Those amounts were partially
offset by a $148 million decrease in other research and development expense. The decrease in
earnings is also attributable to reach-forward losses on the 747 program which grew by $1,352 million
in 2009 compared with losses of $685 million in 2008. The 2009 reach-forward losses were primarily
due to increased production costs, reductions in projected delivery price increases associated with
escalation and the difficult market conditions affecting the 747-8. Lower commercial aviation services
23