Boeing 2011 Annual Report Download - page 4

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2
W. James McNerney, Jr.
Chairman, President and
Chief Executive Officer
2011 Review
Our core production programs and services businesses
in Boeing Commercial Airplanes and Boeing Defense,
Space & Security performed exceptionally well in 2011,
leading to operating margins near 10 percent in each of
these businesses.
We finished the year with record revenues of $68.7 bil-
lion. Net earnings nearly equaled an all-time high at more
than $4 billion. And our strong operating cash flow of
$4 billion maintained healthy liquidity of $11.3 billion.
Boeing Commercial Airplanes delivered 477 airplanes
in 2011 and recorded 805 new orders (net of cancella-
tions), including a 150-plane launch order for our new
737 MAX. We also extended our market-share lead in
the twin-aisle segment with a record 200 orders for the
777 and a key sale of 27 new 767 freighters. Commercial
Aviation Services continued its double-digit growth
trajectory, increasing revenues 11 percent.
Perhaps most important, during the year we ushered in a
new era in aviation and retired key technical and business
risks with the certification and first deliveries of the 787
Dreamliner and 747-8 Freighter. Getting to this point on
these technically challenging programs was not easy.
But thanks to the passion and ingenuity of our people,
we have created two incredible new airplanes that will
deliver significant value to our customers and to Boeing
for decades to come. The airplanes are performing well in
service, earning praise from passengers and operators.
Likewise, customer response to our launch of the 737 MAX
was swift and positive. In only four months, we received
more than 1,000 orders and commitments for this new-
engine variant of the single-aisle 737, which will be 10 to
12 percent more fuel efficient than today’s 737 and cost
significantly less to operate than its competitors. With
development costs and risks far below an all-new airplane,
the 737 MAX will provide customers the capabilities they
want, at a price they are willing to pay, on a shorter, more
certain timeline. This approach is an all-around winner
for Boeing, too. We maintain our qualitative advantage
over competitors in the segment, we free up resources to
invest in other growth projects, and we reduce our busi-
ness risk substantially for the next decade.
To the Shareholders and Employees of The Boeing Company:
2011 was a watershed for Boeing—a pivotal year in which we
delivered strong operating results and made substantial progress
on the business and product strategies that are critical to our future
and our customers’ success. The unrelenting focus of Boeing
employees on program performance, productivity improvement,
and teamwork resulted in near-record financial performance and
a slate of accomplishments rivaling that of any year in recent
memory. Boeing is a stronger, more competitive company in
2012—with a clearer view of our future and an unprecedented
opportunity for growth in the years ahead.
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