Boeing 2014 Annual Report Download - page 9

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needs and to continue funding future
growth opportunities.
Our investments in technology and
innovation for organic growth continue
in areas such as commercial derivatives;
space; unmanned systems; intelligence,
surveillance and reconnaissance; and the
critical few large-scale future programs
that are priorities for our customers,
such as long-range strike, unmanned
carrier-launched airborne surveillance
and strike, and the T-X training system.
To improve our performance on develop-
ment programs, we are creating a central
organization to manage them—effectively
replicating the structure at Commercial
Airplanes. The intent is to make the most
of a scalable, One Company advantage
built on continuous learning, repeatable
disciplines and proven practices.
Over the near-term to midterm, we expect
revenues in this segment will be relatively
flat, with services growing above 30 per-
cent of revenue and international business
around that same level.
Our 2015 Defense, Space & Security
priorities are to extend and grow our core
business by bringing enhanced capability
and affordability to our customers; boost
the performance of our development pro-
grams, including the KC-46A Tanker; and
continue to invest in growth areas amid
further international expansion.
The Environment and
Our Communities
Building a better planet goes hand-in-
hand with building a bigger, better Boeing.
Last year, we began powering our 737
factory with 100 percent renewable
energy. Our Huntington Beach, California,
site saves millions of gallons of water
each year by reusing treated groundwater.
These actions, and others, support our
target of zero growth by 2017 in green-
house gas emissions, water use,
hazardous waste generation and solid
waste sent to landfills—even as our
business grows considerably.
We also advanced global development of
sustainable aviation biofuel with partners
across six continents, and we tested
more than 25 new technologies to reduce
airplane noise and carbon emissions on
the 787 ecoDemonstrator.
Boeing and our employees and retirees
invested $188 million in 2014 to help
improve lives and build better communities
worldwide. We place special emphasis
on programs that provide students with
the critical science, technology, engineer-
ing and math skills needed to compete
successfully in the 21st century. Generous
with their time and talents, our employees,
their family members and friends partici-
pated in 170 projects benefitting more than
100 community partners in 15 countries
around the world during our global month
of service. We also actively create oppor-
tunities and invest in partnerships to
support military veterans and their families.
Leading Toward Our Second Century
As stewards of an incredible aerospace
legacy, we are guaranteed neither contin-
ued leadership of our industry nor another
100 years as a global industrial champion.
We must earn our position every day by
constantly asking as much of ourselves
as all those who came before us—and by
always upholding the integrity and values
upon which our company was built.
Looking back on the last decade—and
forward to a new century of opportunity—
I have never been more proud and
honored to lead the people of Boeing in
support of our customers and share-
holders. Our strategies to restore our
industry leadership and deliver significant
and sustained growth are working. We
are integrated, focused, performing well
and in control of our own destiny.
Together we can take our company higher
and farther than ever before.
Jim McNerney
Chairman and Chief Executive Officer
Re
venue in 2014 rose 5 percent to a record
$9
0.8 billion driven by higher commercial
deli
veries underpinned by a solid defense,
s
pace and security business.
Revenues
($ in b
illions)
64.3 68.7
81.7 86.6 90.8
With a 22 percent increase, we achieved
record core earnings per share in 2014,
reflecting strong operational performance
across the company.
*Non-GAAP measures. See page 122.
4.45
5.79 5.88
7.07
8.60
Continued strong operating cash flow
supported a 25 percent increase in our
dividend and a new share repurchase
authorization of $12 billion.
3.0
4.0
7.5
8.2
8.9
Core Earnings Per Share*Operating Cash Flow
($ in billions)
Financial Results